Whenever you can’t pay your loans, it can be scary. However the worst thing you can do is put your head in the sand. This will only lead to really negative consequences later. Here are four things that you can do rather than ignore your loans altogether.
1) See if there is a lower payment
Often times you are able to get a lower payment based on your income, stretch your term out, or put it on a different payment schedule (such as a stair step plan).
2) Look to see if you qualify for a deferment
If you are unemployed, make within 150% of the poverty line, receive state or federal benefits, among other things, you may qualify for a deferment.
3) See if a short term forbearance will help
Even if you don’t qualify for a deferment, there are forbearances that may help you. These forbearances are also often times great for a stop gap while your deferment form or lower payment plan application are processing.
4) Budget, Save, Work!
Sometimes you have to roll up your sleeves and get that second job. If all else fails remember either your income must go up or your outgo goes down. Though this is not an issue your servicer can help you with, a friend who is great at budgeting or a financial adviser is a great source of help.
Find out how an experienced student loan counselor can coach you to student loan success