7 Options to Keep in Mind When You Can't Pay Your Student Loans

Ah, student loans: the financial rain cloud that follows you long after graduation day. We’ve all been there, feeling overwhelmed by the weight of those monthly payments. But fear not. In this blog post, we’re going to explore some options to consider when you find yourself unable to pay those pesky student loans. If you want to know more about it, visit us here: “Varela Financial“. So, let’s dive into the world of student loan repayment planning, shall we?

1. Explore Income-Driven Repayment Plans

When the burden of student loan payments becomes too heavy, it’s time to get creative with income-driven repayment plans. These plans are designed to adjust your monthly payments based on your income and family size, making it easier to manage your debt. 

By exploring these options, you can maintain your financial sanity while chipping away at your student loan balance. Remember, student loan repayment planning is all about finding the right fit for your unique situation.

Consider researching income-driven repayment plans offered by the government or private lenders. These plans typically require you to provide your income information and update it annually. Based on your income, your monthly payments will be calculated as a percentage of your discretionary income. 

The best part? If you diligently make payments for a certain period (usually 20–25 years), any remaining balance may be forgiven. So, it’s like having a flexible repayment plan and a light at the end of the tunnel.

2. Temporary Repayment Pause:

Sometimes life throws curveballs, and it’s perfectly okay to take a temporary break from your student loan payments. This break, also known as a deferment or forbearance, allows you to pause making payments for a specified period. It gives you the chance to focus on other pressing financial priorities, such as unexpected medical bills, job loss, or pursuing further education.

Deferment and forbearance options vary depending on your loan type and circumstances. During this period, it’s important to note that interest may continue to accrue, especially with unsubsidized loans. So, carefully weigh the pros and cons before opting for this temporary relief. 

3. Student Loan Consolidation

Dealing with multiple student loan payments can feel like herding cats. That’s where student loan consolidation comes in like a superhero with a cape. Consolidation allows you to combine all your loans into one neat package, simplifying your monthly payments and potentially even lowering your interest rate. It’s like decluttering your financial life and finding a hidden oasis of financial stability.

When considering consolidation, explore both federal and private loan consolidation options. Federal loan consolidation allows you to combine your federal loans into a Direct Consolidation Loan, which may offer benefits like flexible repayment plans and potential access to loan forgiveness programs. 

On the other hand, private loan consolidation involves refinancing your loans through a private lender, potentially giving you a better interest rate and simplifying your repayment process. Just remember to carefully evaluate the terms and conditions, ensuring it aligns with your long-term financial goals.

4. Seek Loan Forgiveness Programs

Dreaming of a world where your student loans magically disappear? Well, it might not be pure magic, but loan forgiveness programs can certainly make it feel that way. These programs offer relief to borrowers who meet certain criteria, such as working in public service or specific professions.

Start by exploring federal loan forgiveness programs like Public Service Loan Forgiveness (PSLF), which offers loan forgiveness after 120 qualifying payments while working full-time for a qualifying employer. Additionally, certain professions like teachers, nurses, or members of the military may be eligible for specialized loan forgiveness programs. It’s like finding a pot of gold at the end of the student loan rainbow.

5. Refinance Your Loans

If you’re saddled with high-interest rates, refinancing your student loans can be a game-changer. By refinancing, you can potentially lower your interest rate and monthly payments, providing some much-needed financial relief. It’s like giving your loans a makeover, turning them from a fashion faux pas into a trendy statement piece.

When considering refinancing, shop around and compare offers from different lenders to secure the best terms. Look for lenders offering competitive interest rates, flexible repayment options, and excellent customer service. 

However, keep in mind that refinancing federal loans into private loans means losing federal benefits like income-driven repayment plans or loan forgiveness programs. So, make sure to weigh the pros and cons before making a final decision. With the right refinancing strategy, you can bring a fresh breeze of financial freedom into your life.

6. Supplement Your Income

When the going gets tough, the tough get creative. Consider exploring new ways to boost your income and give your student loan repayment planning a turbocharge. While the thought of working extra hours may not sound like the most exciting prospect, there are playful ways to earn that extra dough and make the journey to loan repayment a bit more enjoyable.

Explore the gig economy and find a side hustle that aligns with your interests and skills. Whether it’s dog walking, freelance writing, graphic design, or even creating and selling handmade crafts, the possibilities are endless. Who knows, you might discover a newfound passion or talent along the way.

7. Seek Professional Assistance

Navigating the world of student loan repayment planning can be like trying to solve a Rubik’s Cube blindfolded. If you find yourself drowning in a sea of paperwork and confusion, don’t be afraid to seek professional help. Reach out to a reputable student loan counselor or financial advisor who can guide you through the process.

These experts have the knowledge and experience to help you develop a personalized repayment strategy and explore options you might not have even considered. They can assist you in understanding complex terms, like loan consolidation, refinancing, and forgiveness programs. With their expertise, you can gain clarity and confidence in your student loan repayment journey.


Student loan repayment planning doesn’t have to be a grim and serious affair. By approaching it with a playful mindset and considering the options mentioned above, you can take control of your student loans and turn them from a burden into an opportunity for financial growth. Remember, the journey may be long, but with a touch of determination, and a solid plan, you’ll conquer your student loans and move towards a brighter and debt-free future.

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