Creditors

Though you're not delinquent in your payments, you can contact any loan debt relief company and check out their debt help options. You can have a word with them in order to find out whether or not they will be able to help you in this matter.

How much do you owe? Most debt relief companies require that you have $5-10k in debt before they even talk to you.

Hi Colleen,

Would you be able to meet the monthly payment on an ongoing basis if the interest rate were reduced?

Letting the account go delinquent in order to settle is an option, but do you have the ability to set aside funds over a brief period of time to settle the account? Do you have a resource you can tap to fund a good settlement offer like a loan from family or friend?

The 30, 60, 90, 120, 150 day late pays will appear on your credit report as would a charge off after 6 months of non payment. This may have an affect on your access to future edu loans (likely marginally if only one account). Settling the account prior to charge off would be optimal.

If you are current and not able to get them to reduce the payment to something more manageable, depending on the creditor, you will be offered lower monthly payment options once you fall behind.
You will be asked for some personal financial details in order to qualify for a hardship plan once you reach this point. Be careful not to answer these questions where you show NO source of income as a full time student. No income equals no plan available with most major creditors.

You can also speak with a credit counseling firm who can assist you in reducing the payment through a debt management plan (DMP). Being in a DMP can inhibit your efforts with future edu loans for sometimes the first year on the plan, so I would suggest the DIY DMP first if taking this direction to manage the debt.