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If you have trouble making your student loan payments, contact your loan servicer immediately. You may qualify for some form of payment relief. It’s important to take action before you incur late fees or your credit is affected!

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. If you are having difficulties making your loan payments, switching to this repayment plan may lower your monthly obligations.
• Income Based, Income Contingent and Income-sensitive payment plans offer payment relief with payments that are a specific percentage of your gross monthly income. Switching to one of these repayment plans may lower your monthly payments.

The Federal Student Aid Web site has more information on loan deferrment.

Consequences of Defaulting On Your Loan

Defaulting on your loan means that you have failed to make payments for 270 days consecutively.

Below are some of the consequences of defaulting:

• A collection agency will take over your loans
• It will hurt your credit score 
• A percentage of your income may be taken to pay your loans
• Social Security benefits could be withheld
• No longer eligible for future federal loans
• Deferments are no longer an option