Change Repayment Plan

• 1). Call your lender or log onto the account management section of its website.
  
  
• 2). Navigate to the option to change repayment plans.
  
  
• 3). Choose a repayment plan with a longer term than the one you are currently on. If you have federal student loans, you also have the option of selecting a plan that bases your monthly payments on your income, which can give you even lower payments than the longest repayment plan if your income is low.
  
  
• 4). Make your usual payments as scheduled until the lender confirms your new monthly payment amount.
  
  

Consolidate Loans

• 1). Gather account information for all of your student loans. You need to know the account numbers, account balances and the names of the lenders.
  
  
• 2). Fill out an application for a direct consolidation loan through the Department of Education if you would like to consolidate federal student loans. These include Stafford, Perkins and PLUS loans.
  
  
• 3). Fill out a consolidation loan application with a private lender of your choice if you need to consolidate private student loans. You do not need to consolidate with the same lender who funded your existing loans. Choose a repayment term on your consolidation loan that is longer than the term on your existing loans.
  
  
• 4). Ask a friend or relative to co-sign on the private student loan if the lender requires a co-signer. A co-signer provides additional security for the lender when funding loans to borrowers without much credit history.
  
  
• 5). Make all of your regular monthly payments until your lender sends you payment information on your new consolidation loan. Then start making the consolidation loan payment each month instead.
  
  

Enter Deferment or Forbearance

• 1). Call your lender or visit its website to get a copy of the deferment or forbearance application. In general, deferment is reserved for borrowers who are unemployed, suffering extreme financial hardship or are returning to school. Anyone can apply for forbearance, and lenders use their own judgment to determine whether to grant it.
  
  
• 2). Read the instructions on the application and gather any paperwork the application requires. For example, you might need to submit pay stubs and copies of bills to prove financial hardship or submit proof of having registered at an unemployment agency for unemployment deferment.
  
  
• 3). Fill out the application and mail it to your lender, along with the supporting documentation.
  
  
• 4). Keep making payments on your loan until your lender sends confirmation that the deferment or forbearance has been granted. Then you can stop making payments entirely until the deferment or forbearance runs out.
  
  
• 5). Reapply for deferment or forbearance if you still cannot afford to make payments when your time period runs out. Lenders usually grant deferment and forbearance for six-month to 12-month time periods.