Quick Answer
Call your federal student loan servicer (the private company that sends your bill) the moment you know a payment will be tight. The four current federal servicers are MOHELA, Nelnet, Aidvantage, and EdFinancial. They are required by the Department of Education to offer income driven repayment plans, deferment, and forbearance before your account goes delinquent.
Do not contact your college financial aid office or the Department of Education directly for billing trouble. They cannot adjust your payment. The servicer can, and they can do it the same phone call.
Who actually owns and services your loans
Most federal student loans (Direct Subsidized, Unsubsidized, PLUS, and Consolidation loans) are owned by the U.S. Department of Education. The Department contracts with private servicers to send bills, take payments, and process changes. Your loan ownership has not moved; only the billing administrator has.
To find your servicer, log into StudentAid.gov with your FSA ID. Your dashboard shows every federal loan and the assigned servicer with a phone number.
What to ask for, by situation
| Your situation | What to request | Effect |
|---|---|---|
| Low or no income | Income Driven Repayment (IDR) plan | Payment recalculated based on income and family size; can be as low as 0 dollars |
| Temporary hardship (job loss, illness) | Unemployment deferment or general forbearance | Pause payments up to 12 months at a time |
| Back in school at least half time | In school deferment | Pause payments while enrolled |
| Want lower payment without paperwork hassle | Extended or Graduated repayment plan | Stretches term up to 25 years or starts low and rises |
| Already missed payments | Reinstatement or rehabilitation | Stops collections, restores good standing |
Income Driven Repayment in plain language
IDR caps your monthly payment at a percentage of your discretionary income, usually 10 to 20 percent depending on the specific plan. You re certify your income each year, the payment adjusts, and any unpaid balance after 20 to 25 years of qualifying payments is forgiven (forgiven amounts may be taxable, depending on current rules).
Apply through StudentAid.gov; the servicer processes the application. If you cannot make your current payment, an IDR application takes about 10 minutes and can drop your bill the next month.
Deferment vs forbearance: the interest matters
- Deferment pauses payments. On subsidized federal loans, the government pays the interest during the pause. On unsubsidized loans, interest still accrues.
- Forbearance pauses payments. Interest accrues on every loan type, subsidized or not, and is added to your balance when payments resume.
Use deferment first if you qualify, forbearance only as a last resort. Both are temporary, usually 12 months at a time, and you must apply through your servicer.
Step by step: what to do today
- Log into StudentAid.gov and write down your servicer name and account number.
- Use the Loan Simulator on StudentAid.gov to see what your payment would look like on every plan.
- Call your servicer or log into their portal. Say plainly: "I am having trouble making my payment. What are my options?"
- Submit the IDR application through StudentAid.gov (one form covers all income driven plans).
- If you need an immediate pause, ask for deferment or forbearance in the same call.
- Keep paying until the new plan is approved. A missed payment now hurts your credit even if relief is processing.
Private student loans are different
If your loan is from a bank, credit union, or private lender (Sallie Mae, SoFi, Earnest, Discover, etc.), call that lender directly. Private loans do not qualify for federal IDR, deferment, or forbearance, but most lenders offer their own hardship programs, interest only periods, or short pauses. The rule is the same: call before you miss a payment, not after.
What to avoid
- Debt relief companies that charge a fee to enroll you in plans you can sign up for free on StudentAid.gov.
- Ignoring mail or email from your servicer. Default starts at 270 days past due on federal loans and triggers wage garnishment and tax refund seizure.
- Paying with a credit card to make a missed payment, which trades one debt for another at a higher interest rate.
FAQs
Can my school help with my student loan payment?
No. Your school confirmed enrollment when you borrowed but does not manage repayment. Only your servicer can change your bill.
Will my credit be hurt if I ask for forbearance?
No. Approved forbearance or deferment is reported as current to the credit bureaus. Skipping a payment without approval is what damages your credit.
How long does an IDR application take to process?
Usually two to four weeks. Apply at least 30 days before your due date so the new payment shows up in time.
What if I cannot reach my servicer by phone?
File the IDR application online at StudentAid.gov. The application alone places your loans in a processing forbearance for up to 60 days while it is reviewed.
The takeaway
Your federal loan servicer (MOHELA, Nelnet, Aidvantage, or EdFinancial) is the one call to make. Ask for income driven repayment first, deferment or forbearance as a temporary stopgap, and apply through StudentAid.gov so the paperwork is on record. The protections exist; you just have to ask before the bill is late.
