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Changing your student loan repayment plan can be a smart move if you’re struggling with repayments. It can lower how much you owe each month and lower your risk of default. It can also help you get out of debt faster if you choose a shorter term. But it’s not the right solution for everyone — and it’s not always an option.
It depends on what types of student loans you have and your lender. If you have federal loans, you’re eligible to change your repayment plan as needed. But most private loans don’t come with the option to change your repayment plan — or at least not officially. If you’re at risk of defaulting and need to lower your monthly repayments, some private servicers might be willing to budge.
Changing repayment plans on federal student loans is relatively straightforward. Most borrowers will follow a version of the following steps:
You have eight repayment plans to choose from when it comes to federal student loans. These include:
The easiest way to compare plans is to use the repayment estimator tool available on the Federal Student Aid (FSA) website. Log in with your FSA ID to quickly weigh the benefits and drawbacks of signing up for different plans. For each repayment plan, you’ll see:
Got a new repayment plan in mind? Contact your servicer to let it know you want to make a change. The fastest way to reach out is to call customer service. Otherwise, you can often send an email, letter or even fax in some cases. Your servicer should tell you what steps to take to change your repayment plan.
If a company says it can change your repayment plan for a fee, stay away. Changing your federal student loan repayment plan is always free. Consider reporting the company to the Consumer Financial Protection Bureau (CFPB) so other borrowers don’t fall prey to its scams.
You need to fill out a form to switch your federal student loan repayment plan. You can get the forms on StudentLoans.gov or directly through your servicer. If you’re applying for a repayment plan based on your income, you might need to submit supporting documents along with the forms.
You’ll hear from your servicer when you’ve successfully made the switch to your new plan. Until then, continue making repayments according to your old plan. You can also check to see which repayment plan you’re currently on by logging in to your online account with your servicer.
Signed up for autopay? After you’ve switched plans, make sure you’re still enrolled. In some cases, you might have to sign up again after switching repayment plans.
Changing repayment plans on your private student loans is a little trickier since they typically only come with one standard repayment option. You make the same fixed repayment every month until your loan is paid off — usually over five to 20 years.
If you’re having trouble making these standard repayments and want to request an alternative plan, get together documents that can support your argument — such as bank statements and pay stubs. Then reach out to your servicer to explain the situation. If you’re in danger of becoming delinquent or defaulting, they’ll often work with you to extend your term or even offer income-driven repayments in some cases.
You might benefit the most from changing your repayment plan in the following situations:
Generally, there are no limits to how often you can change your repayment plan. Federal loans have no limits. And since most private lenders don’t officially offer the option to change your repayment plan, they typically have no limits either.
Changing repayment plans isn’t the only solution to your student loan woes — sometimes it’s not even an option at all. In these cases, you might want to consider:
You can change your student loan repayment plan at any time if you have federal loans — and you could change your private student loan repayment plan under certain circumstances. But it might not always be the best choice for the problems you’re facing, so consider all of your options before making the switch.
You can check out our guide to student loan repayment plans to learn more about how they work.
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