Pay for College

Explore college costs and plan how you'll pay for your degree or certificate.

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 loan holder 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. See Major Choices.
  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 loan holder 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 monthly payment 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. See Managing Credit Cards.
  8. Seek help from your loan holder 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 payment 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 .

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