What Are My Options If I Cannot Make Federal Student Loan Payments?

Posted on March 28, 2018 at 2:00pm by
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A recent Brookings Institution study estimates that 40 percent of federal student loan borrowers who entered repayment in 2004 will default by 2023. There are many reasons why your student loan bills could become difficult while you are in repayment. You could lose your job or succumb to a chronic illness. Regardless of what causes financial hardship, you may have several options that could help with payments until your situation improves.

  1. Economic hardship deferment: The Department of Education may allow you to seek an economic hardship deferment if you are temporarily unable to make payments. You can seek an economic hardship deferment for up to three years (does not have to be consecutive) if you meet one of the four criteria required by the Education Department. For instance, this may be an option if your income is less than 150 percent of the poverty line in your state. Interest will continue to accumulate on your unsubsidized loans during the deferment period. Forbearance has the same drawback.
  2. Income-driven plans: We have written extensively about income-driven plans on our blog. If your loans are in good standing, then you may be able to choose between one or more income-driven repayment options. The options that are available to you depend on the type of loans you carry.
  3. Loan forgiveness: You may also be able to seek loan forgiveness. For instance, you may be able to seek loan forgiveness if you qualify as permanently and totally disabled. Other loan forgiveness options may be available for your situation.
  4. Bankruptcy: Although it is difficult, you may be a good contender to receive a bankruptcy discharge of your student loans. Our attorneys have helped clients discharge student loan debt in bankruptcy.

Contact Our Kansas City Student Loan Attorneys with Questions About Repayment Options

There could be other solutions for resolving student loan repayment problems that we did not address on this blog post. You could always speak to one of our Kansas City student loan attorneys to discover whether there are additional options for your situation. For future updates on student loan tips, follow The Sader Law Firm on Facebook and Twitter.



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