Avoiding Default

Always contact your loan holder if you cannot continue satisfactory monthly payments. Your loan holder will discuss your options and help you determine what might be best for you.

Repayment Options

Deferment
A period of time when you are not required to make payments on your loan

Even though you are not required to make interest payments, interest continues to accrue on unsubsidized Federal Stafford Loans and Federal Parent Loans for Undergraduate Students (PLUS).

Remember, if you do not pay the interest, it will be added to your principal balance when your deferment ends, increasing your total debt.

Forbearance
A period of time when you are allowed to make lower monthly payments (sometimes interest payments only) or stop making payments

Even though you are not required to make interest payments, interest continues to accrue on all loan types. If you do not pay the interest, it will be added to your principal balance when your forbearance ends, increasing your total debt.

Loan Consolidation
The process of applying for a new loan that will be used to pay off your existing student loan debts.

Loan consolidation may allow you to pay your loan over a longer period of time, resulting in lower monthly payments but greater total debt.