What to Do If You Struggle to Make Your Student Loan Payments

31 May 2025

Student loans can feel like a heavy burden, especially when your paycheck barely covers rent, groceries, and other essentials. If you're struggling to make your student loan payments, you’re not alone—millions of borrowers face the same challenge. The good news? You have options. Let’s break it all down so you can breathe a little easier and get back on track financially.

1. Figure Out Why You’re Struggling

First things first—why are you struggling with your payments? Identifying the root cause can help determine the best solution. Are you dealing with:

- A low income or job loss? If you're unemployed or underemployed, paying off loans can feel impossible.
- High monthly payments? Maybe your student loans take up too much of your budget.
- Unexpected expenses? Medical bills, car repairs, or other surprise costs can make payments overwhelming.

Once you pinpoint the issue, it’s easier to decide what steps make the most sense.

2. Contact Your Loan Servicer ASAP

The worst thing you can do? Ignore your student loans. If you're falling behind, reach out to your loan servicer immediately. They can walk you through options like deferment, forbearance, or income-driven repayment plans.

Loan servicers are required to help borrowers find solutions. The sooner you reach out, the more options you’ll have to prevent default.

3. Consider an Income-Driven Repayment Plan

If your federal student loan payments are too high, an income-driven repayment (IDR) plan could be a game-changer. These plans adjust your monthly payments based on your income and family size. Some borrowers even qualify for $0 payments.

There are four main IDR plans:

- Income-Based Repayment (IBR)
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Contingent Repayment (ICR)

Each plan has different eligibility criteria, but they all aim to make payments more manageable. Plus, after 20-25 years of qualifying payments, the remaining balance may be forgiven.

4. Look Into Deferment or Forbearance

If you're going through temporary financial hardship—like job loss or medical issues—deferment or forbearance can temporarily pause or reduce your payments.

- Deferment: Interest may not accrue on certain federal loans.
- Forbearance: Interest continues to accrue on all loans, even while payments are paused.

These options should be a last resort but can provide short-term relief if you’re struggling.

5. Refinance Your Student Loans (If It Makes Sense)

Refinancing can lower your interest rate and make payments more affordable, but it's not for everyone. If you have good credit and a stable income, refinancing could reduce your monthly payment.

However, refinancing federal loans into private loans means losing access to forgiveness programs, income-driven repayment, and deferment/forbearance options. So, think carefully before making this move.

6. Explore Loan Forgiveness Programs

Depending on your job and loan type, you might qualify for loan forgiveness programs that erase part or all of your student debt. Some popular options include:

- Public Service Loan Forgiveness (PSLF): If you work for the government or a nonprofit, you could qualify for forgiveness after 120 qualifying payments.
- Teacher Loan Forgiveness: Teachers in low-income schools may be eligible for $5,000 to $17,500 in forgiveness.
- State-Based Forgiveness Programs: Some states offer repayment help for healthcare workers, teachers, and other professionals.

Loan forgiveness isn’t an instant fix, but if your career aligns with these programs, it’s worth looking into.

7. Consider a Side Hustle for Extra Income

If your full-time job isn’t cutting it, picking up a side hustle can help you stay on top of loan payments. Some flexible options include:

- Freelancing (writing, graphic design, social media management)
- Driving for ride-sharing services
- Selling products on Etsy or eBay
- Tutoring or teaching online
- Gig economy jobs like pet sitting or food delivery

Even an extra $200–$500 a month could make a big difference in keeping up with your payments.

8. Prioritize Your Debt Strategically

If you're juggling multiple types of debt (student loans, credit cards, car loans, etc.), figure out which ones to tackle first. Here’s what to consider:

- High-interest debt first: If you have credit cards with 20%+ interest, prioritize paying those down before extra student loan payments.
- Avoid defaulting on student loans: Unlike credit card debt, you can’t easily discharge student loans in bankruptcy—so staying current is crucial.

A debt payoff strategy like the snowball method (paying off small debts first for quick wins) or the avalanche method (tackling high-interest debt first) can help keep you on track.

9. See If You Qualify for Employer Assistance

Some employers offer student loan repayment assistance as a perk. Check with your HR department to see if your company has a program in place. Even small contributions from your employer can reduce your total loan balance over time.

10. Stay Away from Default at All Costs

Defaulting on your student loans has serious consequences, including:

- Damaged credit
- Wage garnishment
- Loss of federal loan benefits
- Increased balance due to added fees

If you're at risk of default, act NOW. Programs like loan rehabilitation or consolidation can help you recover from default and get back on track.

Final Thoughts

Struggling with student loan payments is stressful, but you’re not powerless. Whether it’s switching to an income-driven repayment plan, refinancing, or picking up a side hustle, there are ways to ease the burden. The key? Take action before things spiral.

If you're feeling overwhelmed, reach out to your loan servicer, research your options, and create a plan. The road to financial freedom may feel long, but every small step counts.