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Repaying student loans

You’ve received your diploma for your secondary education – now what? It’s time to start the process for student loan repayment, which is not something you want to put off. Delinquency can destroy your credit and cause you to go deeper into debt. If you default on your loans (meaning delinquency for 270 days), the government will begin to intercept your tax refunds and garnish your wages. Anyone who co-signed the loan will also be open to this, and because there is no statute of limitations on federal loans, the government can sue you at any time.

Depending on the conditions of your student loans, you will need to begin repayment after you’ve graduated, dropped out, or dropped to part-time student status, typically six months out. Make sure you understand all of your student loan repayment options and the various programs offered to federal student loan borrowers, including consolidation.

If you are unable to meet the terms of your repayment, you may want to consider deferment or forbearance. Depending on your line of work or situation, you may be eligible for student loan forgiveness as well.

Student Loan Repayment Options

Get more information on income-based, standard, and extended repayment plans, plus other options for repayment. There are a number of programs available to work with your current budget.

Deferment and Forbearance

If making payments now is not an option, you may qualify for deferment or forbearance. There are pitfalls to delaying payments, however.

Consolidating Student Loans

Student loan consolidation eases the payment process and can improve your interest rates. Find out more pros, but also cons, on school loan consolidation here.

Student Loan Forgiveness

If you are working in public service or have extenuating circumstances, you may find that your loans could be forgiven after a period of time. 

American Consumer Credit Counseling (ACCC) offers nonprofit credit counseling and debt relief programs for consumers nationwide who find themselves drowning in debt and wondering "How do I get out of debt?" Our certified credit counselors have helped thousands of individuals and families learn how to reduce credit card debt and get out of debt through a variety of credit reduction strategies. Our credit card debt consolidation and debt management plans help achieve credit card relief by consolidating credit cards payments to pay credit card debt down more quickly. We also offer bankruptcy counseling, housing counseling and other financial education services.

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