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How to Avoid Defaulting on Your Student Loans

Defaulting on your student loans can have serious consequences, including damage to your credit score and wage garnishment. If you’re struggling to make your student loan payments, here are some steps you can take to avoid defaulting.

1. Know Your Options

If you’re having trouble making your student loan payments, know that you have options. Contact your loan servicer or lender to discuss alternative repayment plans, deferment or forbearance options, or even loan forgiveness programs. There may be options available to help you avoid defaulting on your student loans.

2. Create a Budget

Creating a budget can help you manage your finances and ensure that you have enough money to cover your student loan payments. Make a list of your monthly income and expenses, and look for areas where you can cut back. Consider consolidating your debts or negotiating with your creditors to lower your interest rates or monthly payments.

3. Stay in Communication

If you’re having trouble making your payments, it’s important to stay in communication with your loan servicer or lender. Ignoring your loans will only make the problem worse. Reach out to your servicer or lender and let them know your situation. They may be able to offer you a temporary forbearance or other options to help you avoid defaulting.

4. Consider Loan Rehabilitation

If you have already defaulted on your student loans, you may be able to rehabilitate your loans. Loan rehabilitation is a program that allows you to make nine on-time payments over a 10-month period, after which your loans will be brought out of default status. This can help improve your credit score and remove wage garnishment.


Defaulting on your student loans can have serious consequences, but there are steps you can take to avoid defaulting. Know your options, create a budget, stay in communication with your loan servicer or lender, and consider loan rehabilitation if necessary. By taking these steps, you can avoid the negative consequences of default and get back on track with your student loan payments.

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