Tips For Those At Risk For Federal Student Loan Default
If you have federal student loans and are having trouble making payments, here are some ways to stop an impending federal loan default.
If you have federal student loans and are having trouble making payments, here are some ways to stop an impending federal loan default.
- Make a payment--The best way to stop default it is to make a payment. A borrower does not have to be current on their student loans to avoid default. One simply need to stay less than 270 days past due.
- Call your loan servicer— Talk to your loan provider. Many will work with borrowers. However, this requires prompt communication.
- Consider Income-Based Repayment and Pay as You Earn plans that limit your monthly payment at up to 15% of your income. The payment could be $0 depending on your income.
- Payment plans—Borrowers do not realize that federal student loans have flexible payment plans available.
- Pursue Deferment or Forbearance— If you cannot pay anything towards your student loans at all, you can ask to have payments stopped.