Get Payment Relief
If you have trouble making your student loan payments, contact your loan servicer immediately. You may qualify for some form of payment relief. And it's important to take action before you incur late fees or your credit is affected.
On this page:
Types of relief
- A deferment is a temporary suspension of loan payments for specific situations such as returning to school, unemployment, disability, or military service. You have a right to defer repayment for certain defined periods.
- Forbearance is a temporary postponement or reduction of payments for a period of time, as you and the lender or holder of your loan may agree, because you are experiencing financial difficulty.
- Graduated payment plans provide short-term relief through low, interest-only payments followed by standard principal and interest payments.
- Income-sensitive or income-contingent payment plans offer payment relief with payments that are a specific percentage of your gross monthly income.
For more information on graduated, income-sensitive, or income-contingent payment plays, see repayment.
TopFederal interest subsidies
These options will provide you with payment relief and help you maintain a good credit rating. If you qualify and apply for federal interest subsidies on your loan during deferments, you loan balance will not increase during the deferment period because the government will be making interest payments on your behalf. However, if you do not qualify for federal interest subsidies on your deferment, or if your loan is in forbearance, your loan balance will increase by the amount of unpaid accrued interest.
TopIssues in obtaining relief
It is import to act quickly if you find your student loan payments hard to handle. If you default, or fail to make your loan payments as scheduled, you risk very serious consequences. Your school, the financial institution that made or owns your loans, your state education loan guarantor, and the federal government can all take action to recover the money you owe. They may notify national credit bureaus of your default, negatively affecting your credit record. You could find it difficult to borrow money to buy a car or a house, and you would be ineligible for additional federal student aid if you decided to return to school. The financial institution that owns your loans may ask your employer to deduct loan payments from your paycheck (garnish your wages), and your state and federal income tax refunds could be withheld (tax offset) and applied toward the amount you owe. Also, delayed payment and collection activities could increase the cost of your loan.
So, if you’re having trouble with loan payments, don’t wait! Contact your loan servicer immediately.
