How to Get Defaulted Student Loans Back on Track

Difficulty finding a job after graduation can hinder timely payments to your student loan lender. Unfortunately, insufficient funds or unemployment isn't a valid reason to ignore student loan payments, and getting behind can trigger credit problems and other fees. But if you're already behind, you can get your student loan back on track.

Instructions

1

Talk to your lender to see if you qualify for loan deferment. Severe economic hardship triggered by unemployment or other issues may qualify you for a student loan deferment. This process postpones repayment and interest does not accrue on the loan. Submit an application to see if you meet the criteria.

2

Complete an application for forbearance. Borrowers who do not meet the criteria for deferment may qualify for a student loan forbearance. Like deferment, lenders postpone repayment -- or accept a lower monthly payment -- but interest does accrue monthly. A forbearance approval will postpone payments for up to 12 months, and borrowers can reapply for another extension if necessary.

3

Contact your student loan lender to work out a new payment arrangement, which will repay the delinquent balance in order to get the student loan out of default.

4

Consolidate your student loan debt. Apply for a consolidation loan to get your student loan back on track. By consolidating, the funds from the new loan pay off your old student loan debt, which gives you a fresh start and a clean record with your previous lender.