00:00 If you have a federal student loan, there are several options
0:04 available to help you manage your debt.
0:05 And if you’re having trouble making your loan payments,
0:08 contact your loan servicer immediately.
0:10 Your loan servicer will walk you through your options.
0:14 For example, you might consider changing your repayment plan.
0:18 There are several repayment options available to you.
0:21 Most borrowers start off with the standard repayment plan,
0:24 which offers a fixed payment over a 10-year period.
0:27 However, you can lower your initial monthly payments
0:31 using a graduated repayment plan that starts with lower
0:34 monthly payments that gradually increase over time.
0:37 Or if you qualify, you may be able to lower your monthly payments
0:41 by extending them over a longer period of time.
0:45 Finally, you may be able to choose a repayment plan
0:47 that ties your monthly payments to your income.
0:50 If you meet certain requirements, you may be able to defer
0:54 or temporarily postpone your payments for a variety of reasons,
0:58 including a return to school, unemployment, or military service.
1:02 If you’re having trouble making your loan payments,
1:05 but do not qualify for a deferment, your loan servicer may grant forbearance,
1:10 which allows you to postpone or reduce your monthly payment
1:13 for a limited period of time due to financial difficulty or certain other reasons.
1:18 Contact your loan servicer to see if you qualify for deferment or forbearance.
1:23 If you have multiple federal loans,
1:26 consolidating them into one loan may also help you better manage your debt.
1:30 In addition to having to make only one federal student loan payment each month,
1:35 your monthly payment amount may be lower
1:37 since the length of your repayment schedule may be extended.
1:40 Consolidating your loans is easy and can be done
1:43 any time after you leave school.
1:45 Switching repayment plans, exploring deferment and forbearance options,
1:49 or consolidating your loans may help you
1:52 better manage your student loan payments and avoid default.
1:55 Remember, if you’re having difficulty making payments,
1:59 contact your loan servicer immediately to discuss the pros and cons of these options.
2:04 If you have questions or need more information,
2:07 please visit StudentAid.gov.
Unable to Repay Student Loans
If you find yourself in a situation where you can’t pay the full amount due on time or have to miss a payment, your loan may be considered delinquent and you may be charged late fees. Contact your loan servicer immediately for help, and ask them about your options.
Finding Your Loan Information
If you are unsure which agency is servicing your defaulted student loan(s), contact the Federal Student Aid Information Center (FSAIC).
You may also retrieve your loan information from the National Student Loan Data System (NSLDS). This system contains financial aid information collected from schools, agencies, and other educational institutions. You will need your Federal Student Aid (FSA) ID information to access your account.
Resolving Defaulted Loans
The Default Resolution Group helps student loan borrowers in default arrange debt payments. Contact the Default Resolution Group at 1-800-621-3115.
Find more information on defaulted student loans:
Eligibility for Loan Forgiveness, Cancellation, and Discharge
You may qualify to have some or all your federal student loan amount forgiven if you enter and continue to work full-time in a public service job. Learn more about the Public Service Loan Forgiveness (PSLF) program.
Loan Cancellation, or Discharge
Under certain circumstances, a school or financial institution will agree to cancel or discharge a loan. Continue making payments on your loan until you hear whether your discharge went through, or if you qualify for forbearance (a temporary suspension or reduction in payments).
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