Falling behind on student loans can feel overwhelming, but you’re not alone. Millions of borrowers struggle with missed payments, rising monthly student loan payments, and the stress of staying on top of due dates. If you’re skipping bills or feeling stretched too thin, it may be time to admit you can’t afford student loan payments, at least not without help.
Signs that you’re in trouble might include:
If this sounds familiar, it’s time to act. The Consumer Financial Protection Bureau outlines what steps to take when you can’t afford your student loan payments, and it starts with understanding your options.
If your loans are competing with groceries, rent, and utilities, you may need to prioritize your monthly bills while working with your servicer on repayment.
Most borrowers have federal student loans, which come with built-in options to help when money is tight. These loans are backed by the Department of Education and managed by a federal loan servicer or another approved loan servicer. You may have taken them out through the federal student aid program during your time in education.
There are several kinds of loan types, and it’s important to know what kind you have. That affects what help is available to you. For example:
If your federal student loan payments are already difficult to manage, you’re not out of options. Log in to your account using your Federal Student Aid ID to review the repayment details available to you.
To learn more about how federal student loan programs work, check out Understanding What Student Loan Forgiveness Really Is.
Your loan account holds all the information you need to get started. Log in and review your:
This is also where you’ll find your principal balance and whether any interest accrues daily.
Use this info to talk with your servicer about next steps. USA.gov also has tools for troubleshooting loan issues and reaching the right support.
Before you fall too far behind, look at your available loan repayment options. There are multiple ways to adjust your payments, depending on your income and situation.
You might switch to a standard repayment plan, an extended plan, or even a graduated plan. Each comes with different monthly costs and timelines. A repayment plan doesn’t have to be permanent; you can switch again later as your finances improve.
Some plans lower your monthly payment amount by stretching payments over more years. Others are tied to your income. If you’re not sure which is best, contact your loan servicer to walk through your options.
This Investopedia guide also breaks down these strategies in more detail.
An Income Based Repayment (IBR) plan adjusts your monthly student loan payment based on your earnings. If you qualify, your payment could be as low as $0 per month.
To determine eligibility, your income information, family size, and income and family size combined are all considered. You must also show partial financial hardship, meaning your required payment under a standard plan is higher than what you’d pay under IBR.
You may be eligible if:
These plans help you qualify for eventual loan forgiveness after 20 or 25 years of payments, depending on the plan.
IDR plans (Income-Driven Repayment) include several options, and the IBR plan is just one of them. Others include:
Each plan uses your income, new income, and family size to calculate monthly payments. Some offer forgiveness after 20 years of payments. All are tied to your repayment history and ability to repay consistently.
Your IDR plan eligibility will depend on your loan type, income, and whether you have previously defaulted. The goal of any IDR plan is to help you pay what you can afford: no more, no less.
If you’re working in public service or a nonprofit job, you may be eligible for loan forgiveness. The Public Service Loan Forgiveness (PSLF) program offers full cancellation after 10 years of qualifying payments under a valid repayment plan.
You must:
The pslf program is not automatic; you must submit an Employment Certification Form each year. You may also qualify for IBR forgiveness or income based repayment forgiveness after 20–25 years on certain plans.
For more, read Tackle Student Loan Debt: A Crisis Guide for Borrowers.
Some borrowers are eligible to have their loans forgiven through the borrower defense rule. This applies if your school misled you or violated certain laws.
If you qualify, the Department of Education may discharge some or all of your loans. Common examples include:
Applying for borrower defense does not require a lawyer. You can submit your claim online through studentaid.gov. While your application is reviewed, your loans may enter forbearance, but interest may still accrue.
This option is limited, but important if you’ve experienced school misconduct or serious consequences to your financial situation.
Your federal loan servicer is the official company assigned to manage your loans. They are your first stop for understanding payment options and applying for changes to your plan.
Don’t wait until you’re facing late payments, past due amounts, or collection threats. Contact your loan servicer as soon as you know you’re having trouble paying. They can help you:
Be prepared to share current income, family size, and account details. This helps your servicer match you with the right plan.
If you have multiple federal loans, you might be eligible for a direct consolidation loan. This process lets you combine several loans into one, with a single monthly payment.
Consolidation might be a good idea if:
Keep in mind:
In most cases, consolidation is free and can be requested through your servicer or studentaid.gov.
If you’re experiencing temporary hardship, you might qualify for deferment or forbearance. Both allow you to pause payments, but there are important differences.
Student loan deferment is typically interest-free for subsidized loans, while student loan forbearance usually allows interest to accrue on all loan types. Either option can help you temporarily reduce or pause your payments when you’re in a tough spot.
You may qualify for student loan deferment if you’re:
Certain forbearances are available if:
These options won’t erase your debt, but they may offer breathing room to temporarily pause your payments and get back on track. Just make sure you know when to reapply or resume payments.
To understand more, see College Raptor’s guidance.
Missing just one payment can lead to student loan delinquency, which can trigger a chain reaction of problems:
Once your account is in default, you could face collection fees, legal action, and a hit to your credit report that lasts for years.
To avoid these serious consequences, act quickly. Even if you can’t afford the full amount, partial payments or a deferment request can help protect your credit.
Parent borrowers who took out PLUS loans often have fewer flexible repayment options, but help is still available.
If you’re struggling with payments:
Also, watch out for tax impacts. In some cases, unpaid student loans can result in your tax refunds being seized. A save plan or IDR plan might reduce the risk, even if your income is modest.
With federal student loans, you may still qualify for a lower payment or even forgiveness in some cases. Make sure you’re working with your loan servicer and not ignoring the account, especially if you’ve co-signed or borrowed on behalf of a child.
Falling behind on your student loan can affect your entire financial life. Your credit report will show any delinquent, defaulted, or past due amount records.
This could lower your credit rating, making it harder to get:
In some cases, missed payments can affect your ability to rent, finance a phone, or qualify for emergency credit. Keeping your loans in good standing—whether through repayment, forbearance, or IDR—is essential.
If your loans have already hurt your credit, ask your servicer about rehabilitation or other solutions. Also request a copy of your credit report from all three major credit bureaus to confirm accuracy.
Many borrowers feel overwhelmed, but there are ways to regain control of your student debt. It starts with communication and ends with a plan. Building a strong spending plan can prevent future delinquency—start with these Essential Household Budgeting Tips.
Here are a few final reminders:
If you need help beyond what your servicer offers, nonprofit counselors can guide you. That includes help with housing, budgeting, credit, and more.
Explore Your Repayment & Relief Options
Our counselors at Credit.org are here to help you understand your loans and find a path forward. There’s no cost, no pressure…just answers and support from people who care.
