FAQs About Repayment Plans

Millions of Americans carry students loans, whether government based loans or private loans. Students loans differ from traditional loans in many aspects. You cannot discharge them in bankruptcy, which prevents unscrupulous students from receiving a free degree. Also, the terms in student loans usually offer flexibility in repayment, so that graduates do not start life with crippling debt.

Q: Can you get a deferment for emergencies?

A: Although this differs among private lenders, the government offers a 24 month deferment of student loans. Simply print or email the deferment form, explaining the need and duration of the deferment and the government usually grants it. However, when the 24 months have passed, you must repay the loan.

Q: Can you adjust the amount you pay?

A: The government offers many repayment scales. The most poplar income contingent plan adjusts the total paid depending on an individual's income, so the amount increases along with the ability to repay. Also, a recommended repayment plan or even a minimum payment makes terms easier, and users can select these at any time on the website.

Q: What if you stop paying?

A: As stated before, no matter how a borrower kicks and screams, student loans do not go away. If the loan comes from the government, it allows a certain period to pass with gentle reminders, but if no payment is made, it can garnish wages. Generosity only goes so far and since the non-payment rate on students is high, especially in a flagging economy, methods are strict. If payment is too difficult, simply contacting the loan officer usually offers a solution.