What to Do If You Can’t Afford Your Student Loan Payments
Struggling to make your student loan payments can feel overwhelming. Whether you hold federal loans, private loans, or a mix of both, there are steps you can take to reduce your payments, pause them temporarily, or reorganize your budget so you can get back on track.
Contact Your Loan Servicer Immediately
If you can’t make payments, the very first step is to call your loan servicer. Servicers can walk you through possible options:
- Deferment
- Forbearance
- Alternative repayment plans
If you are delinquent on your loan, let your servicer know. Communicating with your servicer might help avoid credit damage, collections, or wage garnishment.
Explore Income-Driven Repayment Plans
If you have federal loans, income-driven repayment (IDR) plans may help reduce your monthly loan payment. These plans are based on your income and may take your family size into account.
Available IDR plans currently include (if you meet qualifications):
- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE) (will be phased out July 1, 2028)
- Income-Contingent Repayment (ICR) (will be phased out July 1, 2028)
Important note: Loans consolidated on or after July 1, 2026, will only be eligible for the new Standard Repayment Plan and the new income-driven Repayment Assistance Plan.
Apply for Deferment or Forbearance
If your financial hardship is temporary, deferment or forbearance can temporarily pause or reduce payments.
- Deferment: Certain qualifying situations (such as unemployment, economic hardship, or in-school status) allow you to postpone payments.
- Forbearance: Your servicer may grant temporary relief—though interest will continue to accrue.
Check Whether You Qualify for Loan Forgiveness Programs
Federal loans offer several forgiveness pathways, especially for teachers, public service workers, and those nearing the end of long-term IDR repayment.
Make a Small Payment—Even If It’s Not the Full Amount
Making a small payment is still beneficial. While it won’t bring a past due loan back into good standing, it can reduce interest accrual and shows your servicer you’re making an effort.
Consider Refinancing or Consolidation
Depending on your loan type:
- Federal loan consolidation: Simplifies payments and may open access to extended repayment plans.
- Refinancing (private lender): May reduce interest rates and extend loan terms, which can lower monthly payments.
Before refinancing or consolidating, understand the tradeoffs. Refinancing federal loans into private loans permanently removes access to federal protections, including IDR plans and forgiveness programs. Monthly payments may be lower, but total repayment costs can increase.
If You Have a Cosigner, Communicate With Them
Missed payments can affect a cosigner’s credit. Keeping them informed can help you coordinate solutions early.
Review Your Budget
Reduce unnecessary subscriptions, cut discretionary spending, shop for better insurance rates, and consider more affordable housing if possible.
Look for Ways to Increase Your Income
Ask for a raise, take overtime or extra shifts, seek a higher-paying role, or start a side job to generate additional income.
Stay Alert for Scams
Beware of student loan scams. Rely only on your official loan servicer or the U.S. Department of Education. If something seems suspicious, verify it directly through Federal Student Aid.
