Switch to an income-based repayment (IBR) plan. If your income is low or you support multiple dependents, switching to an IBR plan will lower your monthly payments, which would then be calculated as a percentage of your income. IBR plans are available for most federally administered loans, including Stafford loans, Federal Direct loans and Federal Family Education Loan Program (FFELP) loans. To switch to an IBR plan, call your loan provider to inquire about your eligibility. You will have to re-submit documentation each year to confirm your continued eligibility for the plan.
Switch to an extended or graduated repayment plan. If you have private loans or federal loans under the FFELP or Federal Direct programs that total $30,000 or more, call your loan provider to inquire about switching to an extended or graduated repayment plan. An extended repayment plan increases the term of your loan to between 12 and 30 years and reduces the amount paid each month, but increases the total amount paid for the loan. A graduated repayment plan reduces the amount paid each month initially, but increases the monthly payments at regular intervals. If you expect your financial situation to improve in the future, consider a graduated plan. But if your future financial situation is less certain, switch to an extended plan.
Defer your loans. The U.S. government allows you to defer repayment on your federal loans if you meet certain eligibility requirements. Check the Federal Student Aid website to see if your condition falls under the eligibility requirements. You may be eligible, for example, if you're serving in the military, earning less than minimum wage, pregnant or have recently given birth, working for a tax-exempt organization or unemployed. If your federal loans are subsidized, the government pays interest that accrues during the deferment period, but if your federal loans are not subsidized, you are responsible for interest accrued.
Look for discount options. For example, you may be able to lower your monthly payments if you opt to have your payments debited automatically from your bank account. You can lower the annual interest rate on your Wells Fargo private student loans by 0.25 percent, for example, if you elect for automatic withdrawal. Discount options are generally available for both private and federal students loans. Call your loan provider or search your loan provider's website to find out what discount options are available.
Consolidate your loans. Consolidating your student loans together combines all your monthly payments for each individual loan into a single monthly payment on a lump loan, typically with an extended payment period and lower monthly payments. If you have both federal and private loans, they must be consolidated independently. To consolidate your federal loans, navigate to the federal loan consolidation website and apply online or over the phone. To consolidate your private loans, look through the available consolidators listed on FinAid.org to determine which ones match your needs.