Call Your Servicer Before the Due Date
The single most useful action is to contact your loan servicer before a payment is missed. Servicers have hardship tools they can apply to an account in good standing that become harder or impossible to apply once the account is delinquent.
Your servicer is identified in your loan documents and in your monthly statement. For federal loans you can confirm your current servicer at studentaid.gov. If you do not know who services a private loan, your original promissory note and your credit report will both identify the holder.
Silence is the expensive option
What Options Federal Loans Provide
Federal loans carry the broadest set of protections. Income-driven repayment plans set your payment as a percentage of discretionary income rather than by balance, and payments adjust as your income changes. For a borrower whose income has dropped, an income-driven plan is often a better long-term answer than a pause, because it produces an affordable payment rather than a deferred problem.
Deferment and forbearance both pause or reduce payments temporarily. The distinction that matters is interest. On subsidized loans in deferment, the government generally covers interest. In forbearance, interest almost always accrues and is typically capitalized when the forbearance ends, increasing your balance.
- ✓Income-driven repayment: payment based on discretionary income
- ✓Deferment: temporary pause, with interest sometimes covered on subsidized loans
- ✓Forbearance: temporary pause, with interest accruing and usually capitalized
- ✓Change of repayment plan: a longer term lowers the payment but increases total cost
- ✓Loan consolidation: combines federal loans, which can restore some eligibility
What Options Private Loans Provide
Private education loans do not carry federal protections. There is no statutory right to income-driven repayment, and forgiveness programs such as Public Service Loan Forgiveness do not apply. What is available depends on the contract you signed and the lender's own policies.
That does not mean nothing is available. Many private lenders offer some form of temporary hardship forbearance, interest-only periods, or a modified payment arrangement. These are discretionary, so the outcome depends substantially on contacting the lender early and documenting your circumstances.
What Happens if You Do Nothing
For most federal Direct Loans, an account becomes delinquent the day after a missed payment, is generally reported to credit bureaus at 90 days past due, and enters default at 270 days without payment. Default can lead to collection costs, wage garnishment, and offset of tax refunds and certain federal benefits.
Private loans follow the terms of the promissory note. Default can occur considerably earlier, sometimes at 90 to 120 days, and some contracts include acceleration clauses that make the entire balance immediately due. Read your own loan documents rather than assuming federal timelines apply.
Avoid Paying Someone to Do This for You
You never have to pay a third party to access a federal repayment plan, deferment, forbearance, or consolidation. Every federal option is available directly and at no cost through your servicer and studentaid.gov.
Treat any offer of guaranteed loan forgiveness for an upfront fee as a warning sign, particularly if it pressures you to act immediately or asks for your studentaid.gov login credentials. You can report suspected student loan scams to the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
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Get Notified at Launch →Frequently Asked Questions
What should I do first if I cannot make a student loan payment?
Contact your loan servicer before the payment is due. Servicers have options they can apply proactively that are unavailable or harder to apply once an account is delinquent. Do not wait until a payment is missed, and do not stop opening mail from your servicer.
What is the difference between deferment and forbearance?
Both temporarily pause or reduce payments, but they differ in who pays the interest. During deferment on a subsidized federal loan, the government generally pays the interest. During forbearance, interest almost always continues to accrue and is usually added to your balance afterward. Deferment is generally the better option when you qualify for it.
What is income-driven repayment?
Income-driven repayment is a set of federal repayment plans that set your monthly payment as a percentage of your discretionary income rather than by the balance you owe. Payments adjust as your income changes, and remaining balances may be forgiven after a defined repayment period. These plans apply to federal loans, not private loans.
When does a student loan go into default?
For most federal Direct Loans, delinquency begins the day after a missed payment, is typically reported to credit bureaus at 90 days, and default occurs at 270 days without payment. Private loans follow the terms in the promissory note and can default considerably sooner, sometimes after 90 to 120 days. Check your own loan documents.
LoanAmerica® is not a lender and does not make credit decisions. All loans will be underwritten, approved, and funded by a participating lending partner bank. Loan products are not yet available. Information on this site is for general informational purposes only and does not constitute an offer to lend, a solicitation, or a commitment to provide financing. When available, loans will be subject to credit approval, school eligibility, enrollment verification, and program qualification. Disbursements to institutions run on a weekly cycle; timing is not guaranteed and may vary. This content does not constitute legal, financial, or tax advice. For information about existing federal student loans, contact your servicer or visit studentaid.gov.