Can I Lower My Student Loan Payments?

Can I Lower My Student Loan Payments?

Massive student loan debt can be a source of anxiety for many college students who recently graduated. Not every college graduate finds a job right away and many are in the process of moving out. Paying other bills like rent, groceries, and utilities do not make it any easier to start paying student loan debt. There are some ways you might be able to lower your monthly payments. However, if you have bankruptcy concerns, try contacting a Chattanooga bankruptcy attorney for advice.


If you are struggling financially, there are two options. You can defer your student loan payments or lower your student loan monthly payments through an income-driven plan. The income-driven repayment method of lowering student loan payments can bring your payments as low as zero dollars a month.

This is because the income-driven repayment plan depends on your monthly income levels. For those whose monthly income changes each month, this plan can be helpful. That way, you do not have to worry about missing a payment if your income dips down or you lose your job unexpectedly.

You must reapply for the income-driven repayment plan each year. If not, you could be taken off this plan and your monthly payment will increase. When applying for this plan, you might be asked questions related to your income and family size. The best part about this plan is that you will be keeping up with the interest rate.

With deferment, your interest rate does not stop and will continue to increase the size of your loan until you start paying. Deferment is usually allowed in situations where you have been actively searching for full-time work but have been unsuccessful.


When an income-driven repayment plan or deferment fails, you have other options to lower your monthly payments. There are several ways to pay student loan debt that can help. First, try contacting your student loan service provider to explain your tricky financial situation. See if they have any options.

Consider living like a college student until you are in a better financial spot to pay your loans. This means living with your parents or a roommate to lower rent and bills. Spend less money for the first year until you have a better handle on your loans.

You might also consider budgeting techniques to balance spending with bills. Calculate how much income you make each month and subtract out estimated monthly expenses. See what is left and cut out unnecessary expenses to see what money you could save and put towards your loan. There are several apps that can help with this.


You may not have to go through bankruptcy alone. All you have to do is contact us at Tom Bible Law by dialing (423) 690-7712 for a consultation today about your situation. Our dedicated team of Tennessee bankruptcy lawyers can work with you to figure out your current financial situation and what bankruptcy options you have. We are located throughout the Tennessee cities of Chattanooga and Tullahoma.

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