Know Your Options
Understanding your options before you’re in trouble
You have options that you should be aware of that can help you. Understand these options and if they could apply to your situation then call your servicer to talk about options. They are there to help!
See if you Qualify for Deferment or Forbearance
In some circumstances you can receive a deferment or forbearance. This allows you to temporarily postpone or reduce your federal student loan payments. You’ll need to work with your loan servicer to apply. Make sure to keep making payments until the deferment or forbearance is in place.
Here are some circumstances that might apply:
- You are back in school
- You are performing qualified military service
- You are experiencing economic hardship
- You are unemployed
- You are receiving qualified public assistance
- You are undergoing cancer treatment
- You are serving in a medical or dental internship
- You are in the National Guard and have been activated
- You are a teacher and meet qualifying conditions
- You are receiving repayment assistance under the U.S. DoD Student Loan Repayment Program
- Your monthly student loan payments exceed 20% of your monthly income
See if you Qualify for Loan Forgiveness, Cancellation, or Discharge
In certain circumstances, federal student loans may qualify for forgiveness, cancellation, or discharge. Eligibility requirements vary by program and loan type, and some federal repayment and forgiveness options are changing under recent legislation.
Examples may include:
- Public Service Loan Forgiveness (PSLF)
- Teacher Loan Forgiveness
- Closed School Discharge
- Total and Permanent Disability Discharge
- Borrower Defense to Repayment
- Death Discharge
- Forgery Loan Discharge
- Repayment of your loans under an Income-Driven Repayment Plan
You should discuss your situation directly with your loan servicer or review current federal guidance to determine eligibility and available options.
Consider Consolidating Your Loans for Lower Payments
Many federal student loans are eligible for consolidation, while private education loans cannot be included in a federal Direct Consolidation Loan. Consolidating your federal loans may simplify repayment by combining multiple loans into a single monthly payment and may help you access certain repayment or forgiveness options, depending on your loan type and eligibility.
Repayment options and eligibility requirements for consolidated loans may vary under recent federal student loan legislation. Contact your loan servicer or visit StudentAid.gov for current information.
Because the rules can be complex and have changed under recent federal student loan legislation, it’s important to review your situation before consolidating. Consolidation may not always be a better option based on your individual circumstances.
Consider asking:
- Will consolidation affect my eligibility for specific repayment plans?
- Will consolidation reset or change my qualifying payment counts toward PSLF and/or IDR forgiveness?
- Are there any downsides if I’m close to forgiveness under my current loans?
- Does it make sense to leave some of my loans out of the consolidation to preserve specific loan benefits or payment counts?
Always check how consolidation will affect your specific loans before you apply!nage payments and even reduce your monthly payments. You can apply directly at studentaid.gov or by calling 1-800-557-7392.
Explore Payment Plans
There are different options for repayment. Some of these options could help you lower your payments in the near term. You should discuss these with your servicer and you can learn more here: