Student Loan Repayment Options

Are you graduating, borrowed student loans and are worried about making payments? Perhaps your student loans are already in repayment and you are struggling to make those payments. Do not despair, there are several options available to help you stay on track and alleviate some of your worries. Let us begin with the following steps:

  • Step 1: Know who you owe

    If you are unsure who your loan servicer is, please visit in order to find out. Remember that you will need to contact each of your loan servicers if you have more than one.
  • Step 2: Explore your options

    How to postpone your payments

    If you are unemployed, enrolled in school, or suffering through an economic hardship you can possibly qualify for a deferment. A deferment temporarily postpones your payments and the interest on subsidized loans for a specified amount of time. Another option may be a forbearance, which may postpone your payment but the interest will continue to accrue on all loans. Here are the various deferments you may be eligible for:

    • Unemployment deferment
      • unemployed or working less than 30 hours a week and diligently seeking fulltime employment or,
      • unemployed and receiving unemployment benefits
    • In-school deferment
      • enrolled halftime at a college or university or,
      • enrolled in an approved graduate fellowship
    • Economic hardship
      • monthly income falls below the established poverty line or,
      • serving in the Peace Corps
    • Forbearance
      • payments are postponed but the interest continues to accrue on all loans for a specified amount of time.
    Alternative Repayment Plans

    If your current loan payment is causing a strain on your finances or you simply cannot afford it then you may be eligible for a different repayment plan that can reduce your payment amount. You will need to contact your loan servicer in order to determine your eligibility. Please keep in mind that the amount of interest paid can be greater if you change repayment plans. Below are the different repayment plans available and you can compare them by clicking on the following link Student Loan Repayment Comparison Calculator.

    Income Based Repayment (IBR) / Income Contingent Repayment (ICR)

    The IBR / ICR are alternative student loan repayment plans that establish a monthly payment that takes your unique situation into account by considering the following criteria:

    • Income
    • Family size
    • Student loan debt

    Any outstanding principal and interest still owed after 25 years of qualifying payments will be forgiven.

    Graduated Repayment Plan

    The Graduated Repayment Plan offers smaller payments at the beginning of the repayment period and gradually increases over the repayment period. No single payment will be more than three times greater than any other payment and the repayment period is for ten years.

    Extended Repayment Plan

    The Extended Repayment Plan lengthens the repayment term up to 25 years. Payments can be.

  • Step 3: Taking Action

    Now that you have explored your options it is now time to contact your loan servicer. Do not delay in contacting your loan servicer if you are already in repayment. Falling behind on your loan payments can result in late fees, hold on your transcript, and it can negatively affect your credit score.

If you have any further questions or concerns, feel free to contact our Default Management Office at (956) 665-2411 or via email at

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