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Fast Fact

The default rate on student loans reached an all-time high of 22.4% in 1990. The all-time low was 4.5% in 2003.

Source: Federal Student Aid, 2009

Trouble Paying

You CAN find a solution if you can't pay.

If you can't afford your student loan payments, don't wait until you fall behind to seek assistance. Late or missed payments stay on your credit history for up to 7 years.

Simple solutions are available:

Change Your Due Date
Make sure you have money in the bank when it's time to pay your bill.
Reduce Your Monthly Payments
The repayment plan you choose affects the amount you pay each month.
Postpone Payments
Find out if you qualify for a deferment or forbearance, which allows you to postpone monthly payments.
Loan Consolidation
Combine one or more existing student loans into a single new loan.
Loan Discharge and Loan Forgiveness
If you meet the eligibility criteria for loan discharge or forgiveness, your loan balance will be paid for you.

Take steps to avoid these financial situations at all costs:

Default
Keep your loan from entering default and protect your ability to obtain credit in the future.
Bankruptcy
Declaring bankruptcy does NOT relieve you of your student loan debt. You must still pay.

Supporting Content

Helpful Hint

Don't know who your loan servicer is?
Check NSLDS.ed.gov to see a complete snapshot of your federal student aid. You will need your PIN to access this information.

Test Your Knowledge

Almost 20% of young adults change their career path because of the significant amount of debt they have.

True
False

1. True

This is true. Approximately 17% of young adults are so far in the red that they choose to follow a more lucrative career path than their original choice. Careers like teaching and nursing are suffering as a result.

Source: SmartMoney, 2010