Ten Options To Help Avoid Defaulting On Your Student Loans

  1. Make sure you keep and organize all documents you have relating to your student loans.  This should include all counseling sessions completed, all mailings from your servicer, and any other information sent from your school.
  2. Make sure you fully understand your rights and responsibilities as a loan borrower.  Most of these are listed on the promissory note you completed to receive the loan.
  3. Make all of your scheduled monthly payments on time.
  4. Consider setting up electronic debiting to make sure your payments are received on time and for a possible interest rate deduction.
  5. If able, put more money towards your loans than the minimum requested.  Also, consider paying off higher interest rate loans first.
  6. Make sure you notify your loan servicer of any changes to your name, address, or home number.
  7. If you are having trouble making payments on your loans, contact your loan servicer immediately to discuss options.
  8. Review different payment plan options you have to see if one fits your situation better than the one you are currently on.
  9. Research the pros and cons of loan consolidation to see if it may lower your monthly payment.
  10. Look at options such as loan deferments or a general forbearance before defaulting.