4 Options for Student Debt Relief If You Can’t Pay Your Student Loan

You have just completed your college studies and secured your first job. The bills are piling up, and your paycheck seems to be a drop in the sea. You need to keep your electricity on, pay rent, and buy food to push you through the next month. At this point, student loan repayment may be the last thing on your mind. While it may be tempting to avoid paying your student loan altogether, it is essential to continue managing your loan even if you can’t pay it right away to avoid defaulting on it.

You need to keep in mind that the concept behind student loans is that everybody is supposed to win. Just the way you struggle to pay your personal or fast online loan to avoid penalties, it should be the same way you struggle to pay off your student loan debt.

But, what happens if you graduate and you can’t find a stable job to help you pay off your student loan? What if you become ill and you are unable to complete your college studies, yet you had already taken the student loan? Fortunately, there are four different ways that you can potentially use to get relief depending on your situation. Read on to find out.

Loan Deferment

This option offers you a chance to postpone payments on your principal amount plus interest for student loans for some time. When you defer your student loan, you won’t be expected to make any payments during the deferment period. In some cases, for the federally subsidized loans, the government will pay the interest accrued during the loan deferment period.

Technically, your student loan balances will not increase during the deferment period. At the end of the deferment, you will still owe the same amount as what you owed when you started the deferment. You can qualify for student loan deferment if you are unemployed, serving in the military, underemployed and you can prove financial hardship,  or if you are enrolled at least half-time in school.

Look Into Loan Forgiveness

Another option that you should consider is loan forgiveness. You should only consider loan forgiveness if you took the federal government student loan since private loan lenders don’t offer forgiveness.

Through the public service loan forgiveness programs, student loan borrowers working in public service at agovernment agency or qualifying nonprofit organizations may have their student loans forgiven after at least ten years of qualifying monthly payments. Borrowers who are low-income earners are eligible for loan forgiveness on their remaining balance only if they make qualifying monthly payments for at least 20 years.

Consider Consolidating Your Student Loan

Do you earn monthly income but you are struggling to keep up with multiple monthly payments? Well, you need to consider loan consolidation which offers you an opportunity of dealing with only one payment every month. The federal student loan borrowers can apply for a direct consolidation loan that consolidates all your loans including any fast online loan that you might have taken into one loan from a single lender.

This means that you will only have one monthly payment. Private student loan debt consolidation also allows you to take out a new loan at a lower interest rate and use the funds to pay off your initial student loan. Since you are applying for the new loan at a lower interest, you may end up paying less every month.


Lastly, you can also consider student loan forbearance which is a lighter version of deferment. In forbearance, the loan lender agrees to either reduce or stop your expected monthly payments temporarily. If the payments are postponed completely, it will only be for a limited amount of time, usually not more than 12 months.

At the end of your forbearance period, you will be expected to shift back to your original repayment schedule. During forbearance, the government may cover the interest charges that your loan accrues so your loan balance won’t be higher by the time you resume your monthly payments.