Manage Your Money

Master the skills that can help you manage money throughout life.

10 Tips to Help You Avoid Default

Plan ahead and you’ll succeed in repayment

If you don’t make loan payments for 270 or more days, your loan enters default. When you default, your lender or servicer can request immediate payment in full. But there are many other reasons why default is bad news. Planning well ahead can help you avoid default and succeed in repayment. Here is set of strategies to help you do that.

10 tips to help you avoid default

  1. Borrow only what you need for college and only what you can expect to repay

  2. Consider making nominal student loan payments while in school. This will reduce the amount you owe after graduation.

  3. Explore public service jobs, including teaching, which can provide loan forgiveness under certain circumstances.

  4. Notify your lender or servicer when you have a change of address, phone number, schools, or enrollment status. That way, your loan holder can contact you to offer help.

  5. Choose a repayment plan that provides a realistic repayment amount given your debt and prospective income.

  6. Create and maintain a spending plan that is within your monthly income.

  7. Keep credit card debt to a minimum or avoid credit card debt completely.

  8. Seek help from your lender or servicer as soon as you can if you have repayment problems. Early notification gives you more time to act.

  9. Consider a deferment or forbearance, which are temporary postponements to repayment.

  10. Explore loan consolidation which can extend your repayment period and potentially lower your monthly repayment amount.

Need help?

TG can also provide you with information on loan repayment options. For more information, ask the experts at (800) 845-6267, or send an email message to tgcares@tgslc.org .



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