How to Get Student Loan Help

Student loan debt has become a significant financial burden for millions of Americans, with the total national student loan debt exceeding $1.7 trillion. Finding the right help for managing these loans can make a substantial difference in your financial health and future opportunities. From government programs to nonprofit organizations, various resources exist to help borrowers navigate repayment options, potential forgiveness, and consolidation strategies.

Start with your student loan servicer

Your loan servicer should be your first point of contact when seeking help with student loans. These organizations are contracted by the Department of Education to handle billing and other services for federal student loans. They can provide information about repayment plans, deferment, forbearance, and loan forgiveness programs specific to your situation.

Loan servicers can help you switch to an income-driven repayment plan if you’re struggling with monthly payments. These plans cap your monthly payment at a percentage of your discretionary income, potentially lowering your payment significantly. Additionally, servicers can guide you through the application process for programs like Public Service Loan Forgiveness (PSLF) if you work in qualifying employment.

If you’re unsure who your loan servicer is, you can find this information by logging into your Federal Student Aid account at studentaid.gov or by calling the Federal Student Aid Information Center.

Find nonprofit student loan assistance

Numerous nonprofit organizations offer free or low-cost assistance to student loan borrowers. These organizations provide personalized guidance that can help you understand complex repayment options and develop strategies for managing your debt.

The National Foundation for Credit Counseling (NFCC) offers student loan counseling services through its network of nonprofit agencies. Counselors can review your financial situation, explain available options, and help you create a plan for repayment. Similarly, organizations like American Consumer Credit Counseling provide educational resources and one-on-one counseling for student loan borrowers.

Many nonprofit legal aid organizations also offer assistance with student loan issues, particularly if you’re facing default, wage garnishment, or other serious consequences. These services are typically available at no cost to those who meet income eligibility requirements.

Explore federal student loan relief programs

The federal government offers several programs designed to make student loan repayment more manageable. Income-driven repayment plans include options like Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR). Each plan has different eligibility requirements and formulas for calculating monthly payments.

Loan forgiveness programs are another important resource. Public Service Loan Forgiveness (PSLF) forgives the remaining balance on Direct Loans after 120 qualifying monthly payments while working full-time for qualifying employers. Teacher Loan Forgiveness provides forgiveness of up to $17,500 for teachers who work in low-income schools or educational service agencies for five consecutive years.

Deferment and forbearance options can provide temporary relief by allowing you to pause or reduce payments during periods of financial hardship, continued education, or military service. However, it’s important to understand that interest may continue to accrue during these periods, potentially increasing your total repayment amount.

Consider student loan refinancing options

Refinancing student loans through a private lender might be beneficial for some borrowers, particularly those with good credit scores and stable income. Refinancing can potentially lower your interest rate, reduce monthly payments, or change your repayment term.

However, refinancing federal student loans with a private lender means losing access to federal benefits and protections, including income-driven repayment plans, loan forgiveness programs, and generous deferment and forbearance options. Before refinancing, carefully weigh the potential savings against the value of these federal benefits.

Several online marketplaces allow you to compare refinancing offers from multiple lenders without affecting your credit score. These platforms can help you understand what terms you might qualify for based on your financial profile.

Avoid the student loan scammers

Unfortunately, the student loan relief industry attracts numerous scammers who prey on borrowers seeking help. Warning signs of potential scams include upfront fees, promises of immediate loan forgiveness, requests for your FSA ID or password, pressure to sign up quickly, and companies that contact you unsolicited.

Legitimate student loan help should never require large upfront fees before providing services. Most of the assistance programs offered by the Department of Education are free to access, and nonprofit organizations typically charge minimal fees, if any.

Be particularly wary of companies that claim to have special relationships with the Department of Education or promise to eliminate your student loans quickly. No company has the ability to make your loans disappear or provide special access to government programs.

If you believe you’ve encountered a student loan scam, report it to the Federal Trade Commission, the Consumer Financial Protection Bureau, and your state attorney general’s office.

Financial literacy resources for student loan management

Developing strong financial literacy skills can help you better manage your student loans and overall financial health. Several organizations provide free educational resources specifically focused on student loan management.

The Consumer Financial Protection Bureau offers tools and information to help you understand your repayment options and make informed decisions. Their Repay Student Debt tool provides personalized guidance based on your loan type and situation.

The Department of Education’s Federal Student Aid website provides comprehensive information about all federal student loan programs, including repayment calculators, loan simulator tools, and detailed explanations of available options.

Nonprofit organizations like the Institute for Student Loan Advisors (TISLA) provide free, neutral, and accurate resources to help student loan borrowers make informed decisions about their debt.

By taking advantage of these various forms of assistance, you can develop a strategic approach to managing your student loans that aligns with your overall financial goals and circumstances. Remember that you don’t have to navigate this complex system alone—help is available from legitimate sources that can guide you toward the best options for your situation.