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when do student loan payments come out 7 things to do before your student loan payments resume : npr – hhqh

when do student loan payments come out 7 things to do before your student loan payments resume : npr – hhqh

Student loans can be a burden for many individuals, especially when it comes to making those monthly payments. However, there are several strategies you can implement to lower your student loan payments and ease the financial strain. In this article, we will discuss seven effective ways to achieve this and provide you with valuable insights on how to make the most of these options.

1. Income-Driven Repayment Plans

If you are struggling with high monthly student loan payments, income-driven repayment plans can be a game-changer. These plans offer flexible monthly payments based on your income and family size, making it easier to manage your financial obligations.

Under income-driven repayment plans, your monthly payment amount is usually capped at a certain percentage of your discretionary income. This means that if you earn less, your monthly payments will also be reduced accordingly.

There are several types of income-driven repayment plans, including:

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

Each plan has its own eligibility requirements and specific terms, so it's essential to explore them in-depth to determine which one suits your financial situation the best.

2. Student Loan Refinancing

Another effective method to lower your monthly student loan payments is through refinancing. Refinancing involves replacing your current loan(s) with a new loan from a private lender. By doing so, you may qualify for a lower interest rate, which can significantly reduce your monthly payments.

However, it's important to note that refinancing your federal student loans into private loans will make you ineligible for certain federal benefits such as income-driven repayment plans and loan forgiveness programs. Therefore, carefully consider the pros and cons before making a decision.

3. Consolidation of Student Loans

If you have multiple student loans, consolidating them into a single loan can simplify the repayment process and potentially reduce your monthly payments. Consolidation involves combining all your loans into one, and you'll be left with a single monthly payment instead of multiple ones.

When consolidating your student loans, it's crucial to consider the interest rates and terms of the consolidated loan. Make sure that the new interest rate is lower than the average interest rate of your existing loans to achieve real savings. Furthermore, consolidating federal loans may make you ineligible for certain federal borrower benefits, so evaluate the trade-offs before proceeding.

4. Loan Forgiveness or Discharge Programs

In some cases, you may be eligible for loan forgiveness or discharge programs, which can eliminate a portion or all of your student loan debt. These programs typically require you to meet specific criteria related to your profession, such as working in public service or teaching in underserved areas.

Examples of loan forgiveness or discharge programs include:

  • Public Service Loan Forgiveness (PSLF)
  • Teacher Loan Forgiveness
  • Perkins Loan Cancellation
  • Income-Driven Repayment Forgiveness

It's important to note that loan forgiveness and discharge programs usually require a certain period of qualifying payments before your loans can be forgiven. However, if you meet the eligibility criteria, these programs can offer substantial relief by reducing or eliminating your monthly student loan payments.

5. Extended Repayment Plans

If lowering your monthly student loan payments is your primary objective, extended repayment plans may be a suitable option for you. Extended repayment plans extend the term of your loan beyond the standard 10-year repayment period. As a result, your monthly payments will be significantly reduced.

Extended repayment plans usually offer a term of 20-25 years, depending on the loan type. While this can bring immediate relief in terms of lower monthly payments, it's essential to understand that you may end up paying more interest over the extended term compared to the standard 10-year repayment plan.

6. Temporary Forbearance or Deferment

In certain situations, temporary forbearance or deferment can provide you with a short-term break from making student loan payments. Forbearance allows you to temporarily stop or reduce your monthly payments, while deferment permits you to postpone your payments for a specified period of time.

Both forbearance and deferment options are typically granted based on specific circumstances such as financial hardship, unemployment, or enrollment in higher education. While these options can help relieve the immediate burden of student loan payments, it's important to remember that interest may continue to accrue, potentially increasing the overall cost of your loan in the long run.

7. Active Communication with Your Loan Servicer

Lastly, maintaining open communication with your loan servicer is essential when exploring options to lower your student loan payments. Your loan servicer can provide guidance, answer any questions, and assist you in finding the best repayment plan based on your financial situation.

Don't hesitate to reach out to your loan servicer if you are struggling to make your monthly payments. They may be able to offer additional solutions or alternative methods to alleviate the financial stress caused by your student loans.


Lowering your student loan payments is not an impossible task. By leveraging strategies such as income-driven repayment plans, student loan refinancing, loan consolidation, forgiveness or discharge programs, extended repayment plans, temporary forbearance or deferment, and effective communication with your loan servicer, you can find a solution that works best for you.

Remember, everyone's financial situation is unique, so it's crucial to evaluate these options in light of your specific needs and goals. By taking proactive steps and exploring these strategies, you can ease the burden of student loan payments and work towards achieving financial stability.

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