5 Things To Do If Paying Back Student Loans Have You Losing Sleep At Night

Find yourself dealing with student loans when you’re already juggling a bunch of bills. Yeah, that can feel like trying to fill a leaking bucket. It’s tempting just to shove those loan notices to the side and pretend they don't exist. But let’s face it, ignoring your student loans is like ignoring a small fire in the kitchen. It only gets bigger. From wage garnishment to blocked federal benefits and even legal trouble, the consequences are pretty harsh.

But what if I told you there are ways to handle your student loans without losing your cool? Here are five practical tips to manage your student loans better, even when times are tough.

1. Contact Your Loan Servicer

Before letting your loans fall into delinquency, pick up the phone and call your loan servicer. They can discuss various options that might help keep your account in good standing, potentially helping you dodge the dreaded default bullet.

2. Change Your Repayment Plan

If your monthly payments are becoming unmanageable, consider switching to an income-driven repayment plan. These plans adjust your monthly payment to be a more manageable percentage of your discretionary income, making it easier to keep up with your payments without sacrificing your basic needs.

3. Consider Consolidating Your Loans

Juggling multiple student loan payments? Consolidation might be worth considering. This process combines all your federal student loans into one loan with a single monthly payment. While this could extend your payment period and increase the total interest paid, it can significantly reduce your monthly payment amount.

4. Explore Deferment or Forbearance Options

If you’re facing significant financial hardships, deferment or forbearance may provide the temporary relief you need. These options allow you to pause your payments for a specified period. Be aware that interest may continue to accrue during this time, so it’s important to understand the terms fully before proceeding.

5. Look into Loan Forgiveness Programs

If you work in public service, check out the Public Service Loan Forgiveness (PSLF) program. This program forgives the remaining balance on your Direct Loans after you’ve made 120 qualifying monthly payments under a qualifying repayment plan while working full-time for a qualifying employer. Other forgiveness programs are also available depending on your profession and repayment plan.