ROHNERT PARK, Calif. - November 22, 2017 - (Newswire.com)
There are many downsides to defaulting on student loan debt. In addition to negative credit reports and collection agency calls, borrowers in several states may need to worry about their professional licenses being revoked. For borrowers in certain professions, these licenses are necessary to work in their field. Ameritech Financial, a document preparation company that helps borrowers apply for federal repayment programs, reminds borrowers that income-driven repayment plans make it possible to avoid default when payments on other plans are unaffordable.
Many professions require licensing to practice, including nursing, law enforcement and education. Revoking those licenses impacts both borrowers and their communities. For underserved areas that take great effort to lure licensed professionals, every nurse and public school teacher counts. Losing just one can overburden the others in the community and perpetuate the shortage.
“When borrowers can’t pay their student loans, the last thing they need is to have their professional license, the thing that allows them to work, get taken away,” said Tom Knickerbocker, executive vice president at Ameritech Financial. “While that may work to collect debt from some borrowers, it has the potential to ruin others’ financial futures. That’s why it’s important to avoid default as much as possible. All borrowers should know they have options when they are facing default.”
According to a New York Times article, the laws allowing states to revoke professional licenses of defaulted borrowers were created as a way to collect debt in a time when the government was losing money on guaranteed loans. After Texas and Illinois passed the first of these laws in 1990, the federal government urged other states to do the same. Now, 20 states can seize state-issued professional licenses of borrowers who have defaulted on their student loans. Some states, however, took additional steps with these laws.
South Dakota went the furthest, suspending driver’s licenses and prohibiting defaulted student loan borrowers from getting hunting, fishing and camping permits. While proponents of these laws point to their success — they collected $3.3 million since last year that they’ve put back into communities — critics believe the laws create barriers to repayment instead of motivating borrowers to get back on track.
Some states, however, don’t even actively enforce these laws. The New York Times article described how Hawaii’s State Licensing Board, for example, has never suspended professional licenses, saying they don’t know whose licenses to suspend because they receive no information about which borrowers are delinquent. However, even borrowers in states who don’t aggressively enforce the laws should do everything they can to avoid defaulting, because a loss of license isn’t the only consequence.
Ameritech Financial reminds borrowers that if they can’t afford their student loan payments, they usually have options. The federal government offers a variety of repayment plans. Some of the best for struggling borrowers base their payment amount on their income and may end in forgiveness.
“Income-driven repayment plans are meant to help borrowers afford their payments and avoid default,” said Knickerbocker. “At Ameritech Financial, we specialize in helping borrowers apply for those repayment plans that are offered through the Department of Education. We even have a default rehabilitation program to assist borrowers to get out of default and into an affordable repayment plan. No one should be forced out of their job because they can’t afford their student loan payments.”
About Ameritech Financial
Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of people with financial analysis and student loan document preparation for federal student loan repayment programs offered through the Department of Education.
Ameritech Financial is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Ameritech Financial prides itself on its exceptional customer service.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
customer.service@ameritechfinancial.com
Related Links
Ameritech Financial home page
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Original Source: Ameritech Financial Helps Student Loan Borrowers Avoid Default, Continue Working
