Information from the Washington State Department of Financial Institutions

Can't pay your student loans?

If you’ve missed a payment or are having trouble making payments you need to take action immediately.

Federal student loans

  • Contact your loan servicer
    If you can't make your federal student loan payment in full, contact your federal student loan servicer immediately.  Find your federal student loan servicer.
  • Repayment plans and other options
    There are several repayment plans available to reduce your payments. Learn more about federal student loan repayment plans.

    You may also be able to postpone your payments under deferment or forbearance.

Private student loans

  • Contact your loan servicer
    If you are worried about missing payments, the most important thing to do is to contact your servicer or visit the servicer’s website to see if you have any options.

    If you definitely will be missing a payment, call the loan servicer as soon as possible to discuss the situation.

  • Ask about options
    Unlike federal student loans, there are no standard options to lower your monthly payments on a private student loan.

    Every lender is different. Some lenders will offer modified repayment plans. The important step is to make contact and ask about options.

What options might be available?

  • Deferment
    When you temporarily postpone or reduce payments for a specific reason.
  • Forbearance
    A period during which payments are temporarily postponed under certain circumstances, such as financial hardship.
  • Modified repayment plans
    Sometimes modified repayment plans may be available.

What happens if I don't pay my student loans?

  • Delinquency
    If you fail to pall all or part of your monthly student loan payment, your loan becomes delinquent. 
  • Late Fees
    You may be charged late fees for delinquency, which can add to your total loan cost. Late payments may be reported to consumer reporting agencies and can have a negative impact on your credit report.
  • Default
    If your loan continues to be delinquent, the loan may go into default. The point when a loan is considered to be in default varies depending on the type of loan you received.

    If you defaulted on any of your student loans, contact the organization that notified you of the default as soon as possible so you can explain your situation fully and discuss your options. If you make repayment arrangements soon enough after your loan has gone into default, you may be able to resolve the default quickly.

Beware of private companies offering to help you with your loans for a fee

Private companies may contact you with offers to help you with your student loans for a fee. Remember, you never have to pay for help with your student loans. The U.S. Department of Education loan servicers will help you for free.

Additional resources