Unlike the standardized options provided for federal student loans, repayment options for institutional, private, and state loans can vary significantly. If you are having trouble repaying a private student loan, it is important to stay in touch with your lender, and ask for assistance when experiencing hardship. Depending on the lender, and the circumstance, a borrower may obtain assistance in managing their private student loans.
Borrowers should contact their private lender to ask about temporarily stopping payments in the following instances:
- Return to school at least half-time
- Economic hardship
- Military Deployment
- Natural Disaster
Certain private lenders may also provide options for lowering payments. Borrowers can contact their private lender to ask about:
- Extending the loan term
- Interest-only or reduced payments
Borrowers may also qualify for lower payments or a lower interest rate with a private consolidation loan. A borrower’s eligibility for a private consolidation loan will depend on his or her credit score, and some borrowers may require a co-signer for approval.