What to Do If You Can’t Afford Your Student Loan Payments

Student loans are a debt you have to pay back, even if you don’t finish your degree. However, depending on your situation and what kind of loans you have, you might be eligible for a different repayment plan or to get your loans forgiven. Moreover, when it comes to qualifying for these programs, there’s nothing a private company can do for you that you can’t do yourself for free. 1 

Do not ignore your loans if you’re having trouble making payments. The government offers several options that can help keep your loans in good standing, even if your finances are tight.

3 Ways You Can Keep on Track With Loan Payments

  • Change your payment due date. Do you get paid after your student loan payment is due each month? If so, contact your loan servicer and ask whether you’d be able to switch the date your student loan payment is due.
  • Change your repayment plan. What you ultimately pay depends on the plan you choose and when you borrowed the money. If you need lower monthly payments, an income-driven repayment plan is based on how much money you make.
  • Consolidate your loans. If you have multiple student loans, simplify the repayment process with a Direct Consolidation Loan—allowing you to combine all your federal student loans into one loan for one monthly payment.

If the options above don’t work for you and you simply can’t make any payments right now, you might be eligible to postpone your payments through a deferment or forbearance. However, depending on the type of loan you have, interest may still accrue (accumulate) on your loan during the time you’re not making payments.

How to Manage Your Student Loans” Video

Check out this video to learn more about changing repayment plans, postponing or reducing your payments, or combining your federal student loans. 2.

https://youtu.be/flG4gFIiZzU

 View accessible version (WMV)

 

###Larry Marvin

LifeCrafter- Money $ense

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Beware: Private companies may contact you with offers to help you with your student loans for a fee. Remember, you never have to pay for help with your student loans. The U.S. Department of Education and their loan servicers for free help. Learn more about avoiding paying for help with your student loans.
  1. ©2018 Larry Marvin, Image Credit:32671790441_dbc0255096_o.jpg
  2. https://www.StudentAid.ed.gov