Repaying Your Student Loan

Helpful Repayment Options

If you find yourself having trouble managing your debt and request help, your lender, servicer, or TG can offer you options that will help you get through a financial rough spot. If you cannot afford your current monthly payment amount, or you need to delay repayment due to unemployment or an economic hardship, contact your lender, servicer, or TG for help.

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 reduced at the beginning of repayment and increase periodically over the term of the loan. Income-sensitive repayment adjusts payments based on your income.

Deferment

Deferment is a tool available to borrowers to help them meet their loan repayment obligations. Once the repayment period has begun, 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 based on documentation that you submit.

During a deferment period, you are not responsible for paying the interest that accrues on a subsidized Stafford loan, or any portion of a Consolidation loan eligible for federal interest benefits. However, 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 the deferment application directly to your lender or servicer.

For more information, visit Deferment.

Forbearance

Forbearance is an option your lender or servicer 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 may qualify you for forbearance.

During a forbearance period, you are responsible for paying the interest that accrues on any loan, including 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. It is important to remember that the lender or servicer must approve the forbearance request before your payments can be suspended.

For more information, visit Forbearance.

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.

For more information, visit Consolidation.

Here are other documents located on www.tgslc.org that you may be interested in: