Repaying Your Student Loan

Helpful Repayment Options

If you think you might be in repayment trouble, contact your lender, servicer, or TG first. These organizations have lots of options to help make repaying your loan as easy as possible.

If you can't afford the payment plan you are under or you need to wait a while before beginning repayment due to unemployment or an economic hardship — contact your lender, servicer, or TG for help. One thing is certain — if you don't let someone know you need help, you won't receive any. If you find yourself having trouble managing your debt and ask for help, your lender, servicer, or TG can offer you options that will help you get through a financial rough spot.

Alternative Payment Plans

Some borrowers qualify for other special payment plans, such as income-based repayment, graduated repayment and income-sensitive repayment. Income-based repayment allows payments based on your income, family size, and outstanding balance on eligible loans. Under graduated repayment, student loan payments are smaller at the beginning of repayment and increase periodically over the term of the loan. Income-sensitive repayment adjusts payments based on your income.

Deferment

You are entitled to defer your student loan payments when certain criteria are met. Through deferment you can postpone your scheduled student loan payments for various reasons, such as unemployment, economic hardship, and school enrollment. Your lender or servicer determines if you meet the requirements for a deferment.

During a deferment period, you are responsible for paying the interest that accrues on unsubsidized Stafford, PLUS, and Grad PLUS loans, as well as unsubsidized portions of a Consolidation loan. If you fail to make required interest payments during a deferment period, the lender or servicer may capitalize the unpaid accrued interest. To ensure prompt processing of your deferment, please mail it directly to your lender or servicer.

You can access more information about deferment and download the correct forms at TG Online.

Forbearance

Forbearance is an option lenders or servicers can offer that permits you to temporarily cease payments, allows an extension of time for making payments, or temporarily accepts smaller payments than were previously scheduled. Medical or financial problems that do not meet the requirements for a deferment might qualify you for a forbearance.

During a forbearance period, you are responsible for paying the interest that accrues on any loan, even a subsidized Stafford loan. If you fail to make required interest payments during a forbearance period, the lender or servicer may capitalize the unpaid accrued interest.

A lender or servicer may grant a discretionary forbearance to assist you in fulfilling the repayment obligations of the loan and help prevent default. Remember that the lender or servicer must approve the forbearance request before your payments can be suspended.

You can access more information about forbearance at TG Online.

Consolidation

By consolidating your loans, you might be able to reduce your monthly payments. Your lender or servicer can help you decide if you are eligible and if loan consolidation is the best option for you.

You can access more information about consolidation at TG Online.