Ameritech Financial Explains the Difference Between Need-Based Aid and Merit-Based Aid and Where Student Loans Fit In

​Financial aid comes in many flavors: scholarships and grants, loans to be paid back with interest, work-study, and combinations. Financial aid can be merit-based or need-based. Loans are typically awarded as need-based aid, but scholarships and grants can be either. Ameritech Financial is a private company that helps student loan borrowers understand and apply for federal repayment plans to help them manage any federal student loans they leave college with.

“Students who are trying to figure out how to pay for college may be confused about all the options,” said Tom Knickerbocker, Executive Vice President of Ameritech Financial. “The most important thing to pay attention to is whether aid needs to be paid back or not and what that process is going to entail.”

Scholarships and grants are typically the best way to pay for college because they generally are not expected to be paid back. Such awards may be obtained based on merit, or good academic performance from schools, states, private groups, or individuals. Federal aid is offered based on submitted information through the FAFSA and is always need-based. However, some need-based aid may come from the school or state.

Depending on the expected family contribution calculated by the school, which can include savings or even some private scholarships, students will have access to varying amounts of grants, loans, and work-study. Students are often advised to accept grants first, then loans if needed and only in the necessary amount. Students do not have to accept the full loan amount if they do not need all of it.

Federal loans must be paid back after the student leaves school, with or without a degree. Depending on their income, they may have difficulty repaying those loans. Federal income-driven repayment plans can help borrowers with federal loan payments. Such plans base payments on income and family size and can end in forgiveness after 20 to 25 years of enrollment in the program.

“At Ameritech Financial, we help borrowers understand IDRs and how they might fit into their monthly financial situation,” said Knickerbocker. “We understand that they needed those loans to attend college, and even if they didn’t end up in a high-paying job, they shouldn’t feel their loans are holding them back. We can help apply to get them in a situation to better manage the loans.”

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.

Each Ameritech Financial telephone representative 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