So what do you do if you think you might be in repayment trouble? First, call your lender or servicer, or TG. These organizations have lots of options to help make repaying your loan as easy as possible.

Maybe you can't afford the payment plan you are under. Maybe you need to wait a while before beginning repayment. Maybe you can't find a job. One thing is certain — if you don't let someone know you need help, you won't receive any. If you find yourself having trouble managing your debt and ask for help, your lender or servicer can offer you options to help you get through a rough spot.

Deferment
You are entitled to defer your student loan payments when applicable criteria are met. Through deferment you can postpone your scheduled student loan payments for various reasons, such as unemployment, economic hardship, and school enrollment. Your lender or servicer determines if you meet the requirements for a deferment.

During a deferment period, you are responsible for paying the interest that accrues on unsubsidized Stafford, PLUS, and Grad PLUS loans, as well as unsubsidized portions of a Consolidation loan. If you fail to make required interest payments during a deferment period, the lender or servicer may capitalize the unpaid accrued interest. To ensure prompt processing of your deferment, please mail it directly to your lender or servicer.

You can access more information about deferment and download the correct forms at TG Online.

Forbearance
Forbearance is an option lenders or servicers can offer you in which the lender or servicer permits you to temporarily cease payments, allows an extension of time for making payments, or temporarily accepts smaller payments than were previously scheduled. Medical or financial problems that do not meet the requirements for a deferment might qualify you for a forbearance.

During a forbearance period, you are responsible for paying the interest that accrues on any loan, even a subsidized Stafford loan. If you fail to make required interest payments during a forbearance period, the lender or servicer may capitalize the unpaid accrued interest.

A lender or servicer may grant a discretionary forbearance to assist you in fulfilling the repayment obligations of the loan and to help prevent default. You may request this forbearance by contacting your lender or servicer verbally or in writing. Contact your lender or servicer to obtain forbearance forms. Remember that the lender or servicer must approve the forbearance request before your payments can be suspended.

You can access more information about forbearance at TG Online.

Consolidation
By consolidating your loans, you might be able to reduce your monthly payments. Your lender or servicer can help you decide if you are eligible and if loan consolidation is the best option for you.

You can access more information about consolidation at TG's Consolidation Station^SM.

Alternative Payment Plans
Some borrowers qualify for other special payment plans, such as graduated repayment and income-sensitive repayment. Under graduated repayment, student loan payments are smaller at the beginning of repayment and increase periodically over the term of the loan. Income-sensitive repayment permits payments based on your income.

Back to Top

TG Default Prevention
(800) 338-4752
prevent.default@tgslc.org