Take Control of Your Student Loans

Student loans are complicated to begin with, and most people take out student loans when they are young – it is often the first debt that many borrowers take out.

It can feel like a huge lift to take even the first step to managing your student loans, but you have the power to get informed and make decisions that can help you to see the light at the end of the tunnel.

Some key strategies for taking control of your student loans includes:

1. Learn about your own loan situation! You may not be as familiar as you want to be with your own loans and the terms of them. You can get a bird’s eye view of your student loan situation by logging into StudentAid.gov and viewing all your loan details, and doing research into parts of your loan situation you don’t understand.
2. Learn about your payment plan options and select the best one for you. For both private and federal loans, it’s important to know what you will owe, when you will owe it, and what flexibilities exist on your payment amount and total amount paid over time.
3. Confront problems and questions head-on. Federal student loan servicers like MOHELA, EdFinancial, and others are contracted with the government to service your loans – they are responsible for making sure any issues you encounter are dealt with! Federal Student Aid (the Department of Education) is also a key resource for answering questions, addressing issues, and making complaints. When student loan issues aren’t addressed promptly, you can have negative impacts like delinquency or default, negative credit reporting, or paying more than you have to – these impacts can mean that other financial problems get bigger rather than more manageable.

To read more about some strategies to take control of your student loans, visit: https://www.consumerfinance.gov/paying-for-college/repay-student-debt/student-loan-debt-tips/#control

Income-Driven Repayment

Income-Driven Repayment plans set monthly federal student loan payments to a more affordable amount based on income and family size. Most federal student loan borrowers are eligible for at least one of these plans. Payments can be as low as $0 a month. There are four plans offered on the Federal Student Aid you can read more about on StudentAid.

Starting in 2026 – 2028, the Department of Education will be sunsetting most of the existing Income Driven Repayment options. A repayment plan, the Repayment Assistance Plan (or, RAP) will be available for eligible student loan borrowers beginning in July 2026.

For some borrowers, RAP will be an affordable, accessible option – but current student loan borrowers with existing loans before July 1, 2026 may need to act to ensure the most optimal monthly payments, especially those with Parent PLUS loans or those pursuing forgiveness programs associated with income driven repayment like Public Service Loan Forgiveness or Income Driven Repayment Forgiveness. Read more about your options and how you may need to act on our blog post with interactive pathways based on your current situation: https://sdrc.mdcinc.org/student-loan-payment-plan-changes-your-complete-guide-2025/

Rehabilitation for Defaulted Loans

If you have defaulted on your student loans in the past, it can have major implications for your credit score, future payment options, and other financial impacts.

You can get out of default through a few methods. The method with the fewest long-lasting negative impacts is a process called “Loan Rehabilitation.” Because of recent policy changes, those who have defaulted on their monthly student loan payments now have 2 lifetime chances to rehabilitate their loans.

Learn more about Loan Rehabilitation here: https://studentloanborrowerassistance.org/for-borrowers/dealing-with-student-loan-debt/default-debt-collection/getting-out-of-default/rehabilitation/