What to Do If You Can’t Afford Your Student Loan Payments

Sarah Brady, NFCC

Updated: August 12, 2026

Key Takeaways

With the SAVE plan ending, many borrowers may need to apply for new payment plans.
There are still several income-driven repayment (IDR) plans available for federal borrowers.
If you have private student loans, you may be able to consolidate or refinance your debt.
You can get student loan counseling from NFCC-certified credit counselors.

Are your student loan payments increasing or resuming soon? If so, you’re probably stressing out about how you’ll cover the expense. Unfortunately, you’re not the only one in this tough spot: as of March 2026, roughly nine million federal student loan borrowers are in default.

For cash-strapped borrowers, resuming student loan payments can mean having to make serious budget cuts. It can even mean choosing between things like paying for daycare, saving for emergencies or covering other debt payments.

Fortunately, there’s still help available for borrowers who can’t afford their full student loan payments. That includes income-driven repayment (IDR) plans that can reduce your monthly payment, temporary forbearance to give you a payment pause, and student loan counseling from the NFCC.

Here’s a look at some of the resources you can use if your student loan payments simply aren’t affordable.

What to do if you can’t afford your federal student loan payments

Apply for an income-driven repayment (IDR) plan

Even if your old payment plan is no longer available, you might qualify for one of the remaining income-driven repayment plans. IDR plans can reduce your monthly payment based on your income and household size, and some plans even reduce monthly payments to $0 for qualified borrowers.

Current IDR plans (as of August 2026) for federal student loans include the following:

Income-Based Repayment (IBR)
Pay As You Earn (PAYE)
Repayment Assistance Plan (RAP)
Income-Contingent Repayment (ICR)

You can see the full list of available IDR plans at StudentAid.Gov and apply online in 10 minutes or less.

Ask your loan servicer for help

Another option is to reach out to your loan servicer and ask if help is available. Your loan servicer is the company that handles billing and payments for your loans. Depending on your loan type and your circumstances, the following assistance could be available:

Temporary forbearance: There are several types of forbearance that may be available, and some can put your payments on pause for as long as three years. However, interest will accrue during this time, which means your loan balance can increase.
Temporary deferment: If you’re facing a qualifying hardship, you may be able to pause your payments for six months or more. For some loan types, interest will not accrue during deferment.

See if you qualify for student loan forgiveness

Check to see if your employment or other circumstances make you eligible for student loan forgiveness. With the Department of Education’s (ED’s) loan forgiveness programs, you can potentially have some or all of your remaining debt forgiven.

Here’s an overview of the main federal student loan forgiveness programs that are available:

Public Service Loan Forgiveness (PSLF): If you work full-time in a public service role, you can have your remaining loan balance forgiven after you make 120 qualifying payments.
Teacher Loan Forgiveness: Teachers who have worked full-time for five consecutive years in a qualifying low-income school can be eligible to have up to $17,500 of their student loan debt forgiven.
Income-Driven Repayment (IDR) Forgiveness: If you’ve been on an IDR plan for 20 to 30 years (depending on your loan type), you can potentially qualify to have your remaining balance forgiven.
Total and Permanent Disability (TPD) Discharge: Borrowers who are totally and permanently disabled may qualify to have their loans and their TEACH Grant service obligations discharged.

Enroll in autopay to reduce your interest rate

Do you have a Direct Loan that was disbursed on or after July 1, 2012? If so, you can now qualify for a 1% interest rate reduction if you enroll in autopay by September 30, 2026. If you’re already enrolled in autopay, you don’t have to take any action.

This rate discount probably won’t make a big dent in your payment, but it can help reduce your interest costs and potentially lower your monthly payment a bit.

For example, if you owe $65,000 with a 6.5% interest rate and 120 months left, your payment will be about $738 per month. However, if your rate is reduced to 5.5%, your monthly payment will drop to roughly $705 a month, saving you around $400 a year.

Note that the 1% rate reduction is currently only available through June 30, 2028.

What to do if you can’t afford your private student loan payments

Ask your lender about payment relief

Reach out to your private student loan lender and see if they have any assistance available for borrowers. Depending on the lender, you might have the option to pause or reduce your payments.

If you’re facing special circumstances, such as serving on active duty in the military or going to graduate school, the lender might agree to give you a forbearance or deferment. Just know that your loans can still accrue interest charges while you’re on these plans, which will cause your balance to increase.

Refinance or use a consolidation loan

If you have private student loans, taking out a consolidation or refinance loan from a private lender can potentially help you manage and pay off your student debt. If your credit is good enough to qualify for a new loan, you can search for one that has lower interest rates and/or lower payments that fit into your budget, then use that loan to pay off your private student debt.

Just note that, if your lender offers loan forgiveness options (which is uncommon for private loans), consolidating or refinancing may make you ineligible for forgiveness. So it’s a good idea to ask your lender if they have forgiveness options before taking this step.

Can an NFCC-certified credit counselor help with student loan issues?

Nonprofit credit counseling can help you tackle nearly any financial problem you’re facing, including issues with student loans. Here’s how an NFCC-certified, nonprofit credit counselor can help you navigate unaffordable student loan payments:

Student loan counseling: With student loan counseling you can get advice on how to manage federal and private student loans, including help navigating your different relief options.
Budget support: A counselor can review your income and expenses and offer expert tips on how to improve your budget, including advice on which expenses to prioritize.
Debt management plan (DMP): If you’re eligible, a credit counselor can enroll you in a debt management plan to help you manage your credit cards and other eligible debt by reducing your payment amounts and/or interest rates.
Credit advice: If you’re looking to refinance or consolidate your student debt, your credit scores will be crucial since they help determine if you qualify for a new loan. A credit counselor can review your credit reports and offer personalized tips on how to improve your scores.
Other guidance: NFCC-certified credit counselors can offer strategies for managing different types of debt as well as guidance and resources for improving your finances. For example, they can advise you on how to ask your creditors for hardship payment plans or help you decide if it’s worthwhile to consider filing bankruptcy.

You don’t have to be behind on your student loan payments or other debt to reach out for help. In fact, the sooner you talk to an NFCC-certified credit counselor, the more options you may have for dealing with your student loan issue! You can schedule your first appointment online or by calling 800-388-2227.