How to Get Out of Student Loan Delinquency

A man pulling his empty pocket.

Flickr user Peter Gerdes

It’s the stuff of college student nightmares. What do you do if you just do not have the money to make your monthly student loan payments? Missing payments for 270 days will result in loan delinquency, which will only make matters worse.

These two tips will help you tackle your student loan delinquency and keep you from falling further into debt.

Call Your Lender

Whether you’re behind by only one payment, or if you’ve missed multiple payments, the first step is to call your loan lender and ask for help. Whether you are unemployed or dealing with some financial emergencies, they won’t know if you don’t call. Lending agencies have been through this before and are in the best position to offer you solutions that will help you get out of student delinquency.

Consolidate and lower the interest on your student loans
Variable APR from 1.87% – 6.52%
Fixed APR from 2.30% – 5.96%

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Request a Forbearance

If you’ve fallen behind by several payments, request loan forbearance. It may be best to call your lender first so they can walk you through the process, but you may be able to apply online as well. Forbearance allows you some time to get extra money together to begin paying down your debt.

Once you get back on track financially, try to keep it that way. Defaulting on student loans is one of the fastest ways to ruin your credit, which will make it even more difficult for you to get loans in the future. 

 

Lender Rates (APR) Eligibility
Earnest company logo.
Variable APR: 1.74% - 5.64%*
Fixed APR: 2.44% - 5.79%*
Undergraduate and Graduate
VISIT EARNEST
Lendkey company logo.
Variable APR: 1.90% - 5.25%*
Fixed APR: 2.49% - 7.75%*
Undergraduate, Graduate, Parent PLUS
VISIT LENDKEY
Credible company logo.
Variable APR: 1.80% - 9.99%*
Fixed APR: 2.15% - 9.99%*
Undergraduate and Graduate
VISIT CREDIBLE
Laurel road company logo.
Variable APR: 1.89% - 5.90%*
Fixed APR: 2.50% - 6.00%*
Undergraduate and Graduate
VISIT LAUREL ROAD
Commonbond company logo.
Variable APR: 1.98% - 7.04%*
Fixed APR: 2.59% - 6.94%*
Undergraduate, Graduate, Parent PLUS
VISIT COMMONBOND
Fixed APR: 2.44% - 6.22%*
Undergraduate, Graduate, Parent PLUS
VISIT ISL Education Lending
Variable APR: 1.87% – 6.52%**
Fixed APR: 2.30% – 5.96%**
Undergraduate, Graduate, Parent PLUS
VISIT Nelnet
Variable APR: 2.94% - 4.79%*
Fixed APR: 2.99% - 4.89%*
Undergraduate and Graduate
VISIT College Ave
Variable APR: 1.86% - 6.01%*
Fixed APR: 2.47% - 5.99%*
Undergraduate and Graduate, Parent PLUS
VISIT ELFi

*APR includes a 0.25% interest rate reduction for enrollment in automatic payments.

**Interest rate reduction of .25% for automatically withdrawn payments from any designated bank account (“auto debit discount”). Auto debit discount applies when full payments (including both principal and interest) are automatically drafted from a bank account. The auto debit discount will continue to apply during periods of approved forbearance or deferment if the auto debit discount was in effect at the time of receiving the forbearance or deferment. Auto debit discount will remain on the account unless (1) the automatic deduction of payments is canceled or (2) there are three consecutive automatic deductions returned for insufficient funds at any time during the term of the loan.

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