Several choices are offered to individuals who cannot make their loan payments. Deferments, payment relief or forbearances might be available. If you, as so many others are, experiencing financial hardships, contact your lender to find out what student loan deferment you qualify for.

If you lose your job, start attending school or suffer another type of hardship, you might be able to have the loan payments postponed for a certain amount of time. This is known as a deferment. Interest payments may need to be made during this period depending on whether the loan is subsidized or unsubsidized. Check with your lender to find out what is available to you.

Deferments for those who is active duty or who are called to active duty is offered with lenders. The deferment can also be extended to cover the time of demobilization.

Those who are members of the National Guard or other reservist programs, regardless of whether current or retired, who is called back to active duty while attending school at least part time might be eligible for a deferment for up to- months after their service has ended or if you return back to school.

If, according to federal regulations, you are experiencing economic hardships, a deferment may be available to you for up to 3 years if the loan is a FFEL, Federal Perkins or Direct Loan. Regardless, you need to contact your lender to find out if you qualify.

Having your payment amounts reduced or postponed is called forbearance. This only happens for a certain amount of time. If you do not qualify for a deferment you may qualify for forbearance. The difference between a forbearance and deferment is that during the forbearance, it doesn’t matter what kind of loan you have, the interest still grows and you do have to pay it. There is a possibility that the forbearance will last for up to 3 years total. As with deferments you do have to apply for it and continue to make payments until it is approved.

Just a side note for PLUS Loan borrowers. For the most part, the same requirements apply when requesting forbearances or deferments. Since the loan is unsubsidized, interest will accrue during the forbearance or deferment period. You don’t have to pay the interest during this time but it will compound if you do not.

You can choose to change repayment plans if you feel that another one would work better for you. With the FFEL you are allowed to change your payment plans one time within a 12 month time period. With Direct Loans you can change plans several times as long as the new plans repayment period is longer than the one you are on at the present time.

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