How to Get Help Paying Back a Student Loan If You Can't Afford It

Because of the high cost of college and post-graduate education, recent graduates might find themselves unable to afford their student loan payments. For example, payments on $40,000 of student debt to be repaid over 10 years at 6.8 percent interest are $460.32 per month. In many situations, recent graduates will be paying more each month for their student loans than for their portion of an apartment's monthly rent. Lenders that offer student loans provide graduates with resources and alternate repayment plans to help them make student loan payments.

Instructions

1

Call the company that services your loan as soon as you realize you are having trouble affording your student loan payments. Taking action quickly can help you avoid damaging your credit score with late payments.

2

Tell the customer service representative that you cannot afford your current student loan payments and need to discuss other payment options.

3

Ask to receive a deferment if you cannot afford your payments because you are enrolled in school, unemployed, or otherwise experiencing economic hardship. The representative will help you determine if you are eligible for deferment, which will allow you to stop making payments on your student loans. If the federal government subsidized your loans while you were in school, they will be subsidized during deferment as well, which means that the government will pay the interest accruing on them.

4

Ask to receive forbearance if you do not qualify for a deferment. Forbearance is granted in times of financial difficulty for up to three years and allows you to stop making payments. However, interest will continue to accrue during this time so you will owe more on your student loans when you start repaying them again.

5

Change your student loan repayment plan if you do not qualify for forbearance or deferment. The representative can help you select the best available plan for your situation.

6

Contact your local community center to find resources to help you develop a budget so you can afford your monthly payment. Many nonprofit credit-counseling companies offer free or low-cost budgeting workshops or personal consultations.