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What's going on with student loans?

Key takeaways

  • While you can't control everything about your student loans, you have power over some aspects.
  • Consider these moves to potentially owe less and smartly approach repayment.
The student loan you took out might look different in the coming months, as lawmakers in Washington contemplate potential changes to payment plans. One change in the works: Borrowers in default could receive notices warning them that lenders will garnish up to 15% of their disposable income starting in fall 2025.1 Tax refunds and Social Security retirement and disability benefits could be garnished too. For now, it's best to contact your student loan servicer to find out what payments are expected of you, if any. In the meantime, keep reading to feel empowered to take control of what you can.
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1. Look into career-focused repayment and forgiveness programs

Based on your career and/or degree, you may qualify for student loans that offer lower interest rates and/or longer grace periods for repayment than the standard options. You may even be able to score forgiveness. These programs include:

You're not out of luck if your industry isn't on this list. Smaller career-focused programs are out there, and your school may even offer loans for certain degrees of study. It's worth an online search to check.

Plus, your employer may offer a student debt assistance benefit. Check with your human resources department to see if one is available to you.

2. Get your budget in shape

A good way to make sure you can cover your student loan payment each month is to budget for it. You could start with a budgeting tool, such as Fidelity's budget worksheet, or use a simple spreadsheet. Write out your monthly income—counting all the money coming in on a regular basis, after taxes and any retirement contributions are taken out. Then, list out your monthly expenses. Fidelity has a simple budgeting guide

If your student loan payment takes a big chunk of each paycheck, consider trying these ways to save on groceries, rent, utilities, gas, commuting, dining out, and health care.

3. Prioritize debt payoff wisely

Getting your debt under control can be complicated if you have multiple loans or kinds of debt. That's where these suggestions fit in.

4. Mind your credit

Student loans affect your credit score. Reported missed payments could drop your score, making it more difficult and expensive to borrow money in the future. Generally, depending on your loan, missing 3 payments could put your loan into default. A loan default looks worse on your credit report than a late payment, so you'll want to avoid defaulting if possible.

If extenuating circumstances make it impossible for you to make your monthly payments, you could submit a request to your loan servicer for deferment—a temporary pause on loan payments—or forbearance, a pause on or reduction of payments. Don't qualify? Here are other ideas for avoiding defaulting if you can't make your student loan payments.

Is there a better way to pay off student loans?

Use our student debt dashboard to evaluate repayment options.

More to explore

1. Megan Cerullo, "Behind on your student loan? Here's what to know about wage garnishment," CBSNews.com, May 21, 2025.

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