What Should I Do If I Can’t Pay My Student Loans?

Q: What should I do if I cant pay back my student loans?

A: Here are some helpful tips on what to do if you find yourself in the position of not being able to pay your student loans back, or are struggling with your monthly student loan payments. Depending on the type of student loans a borrower has, they may have more options for student loan repayment than they are currently aware of.

FIRST – Contact your student loan servicer or student loan lender and explain your situation to them immediately. They may be willing to work with you or offer some suggestions to defer your student loan payments for a period of time, or offer consolidation to help make your monthly student loan payments more affordable.

SECOND – Review your repayment options. Your servicer may be able to reduce your monthly payment amount through various repayment plans including student loan consolidation.

THIRD – Ask your servicer if you qualify for a deferment or forbearance. Typically all student loan types (federal and private) offer one or the other.

FOURTH – Show good faith to your student loan lender by following through with all arrangements you make with them This includes completing and returning forms timely and sending payments as promised.

FIFTH – If for some reason you are unable to make your student loan payments as promised, contact your servicer right away to make alternate arrangements so your account does not default.