Several options are available for borrowers who can’t keep up with student loans.
Deferment: Payments stop and interest does not accrue for a set period of time. Common reasons for deferment include unemployment, economic hardship, military service or returning to school more than half-time.
Forbearance: Payments are stopped as in deferment, but interest continues to accrue.
Income Based Repayment: Starting in July, borrowers earning less than 150 percent of the poverty level can have monthly payments set to zero. Payments are set on a sliding scale for those earning more. Payments reset each year based on income, but after 25 years, any remaining debt is forgiven.
Cancellation: Activities such as teaching in a low-income area, volunteering for the Peace Corps or Head Start or serving with the military in a war zone can result in the forgiveness of a portion or all of a student loan.
More help: Contact the loan servicer whose name is on the monthly statement. Below are some other resources.
College Assist: 800-289-7378
Sallie Mae: 888-272-5543
Department of Education: 800-621-3115
