If you cannot afford your federal student loan payment, the fastest real fix is almost always to change your repayment plan, not to pause it. Switching to an income-driven plan can cut a payment from hundreds of dollars a month to double digits, and those months keep counting toward loan forgiveness. Pausing through a general forbearance stops the bill, but interest still builds and, for months from July 1, 2026 onward, that time no longer counts toward forgiveness under the Repayment Assistance Plan. Deferment sits in between: unemployment and economic hardship deferments do still count toward RAP forgiveness.
Here is how each option actually works, what it costs you, and what a lower payment looks like in real numbers.
What happens if I stop paying my student loans?
For most federal student loans, you default once you have not made a payment in more than 270 days, which is about nine months, according to the Consumer Financial Protection Bureau. Default is not a soft landing. Your wages can be garnished without a court order, your tax refund can be seized and applied to the loan, Social Security payments can be offset the same way, credit reporting companies are notified, and you lose eligibility for additional federal student aid.
The important part is the gap. You have months between a missed payment and default, and nearly every option below is free, reversible, and available during that window. Doing nothing is the only choice with no upside.
Should I use deferment or forbearance if I can’t afford my payment?
Deferment is better than forbearance when you qualify for it, and both are worse than simply lowering your payment. Under 34 CFR 685.204, an unemployment deferment and an economic hardship deferment are each available for periods that collectively do not exceed three years, for loans disbursed before July 1, 2027. On a Direct Subsidized Loan, neither principal nor interest has to be paid during deferment. On a Direct Unsubsidized Loan or a PLUS loan, principal pauses but interest still accrues and is capitalized.
Forbearance is broader and easier to get, and that is exactly why it is expensive. Under 34 CFR 685.205, if payments of interest are forborne, they are capitalized, meaning the unpaid interest is added to your principal and you then pay interest on that larger balance. Forbearance is granted for a period of up to one year and is renewable on request.
Does a paused payment still count toward loan forgiveness?
Some pauses count and some do not, and the rule changed in 2026. Under 34 CFR 685.209(k)(8), a month in which you received an unemployment deferment or an economic hardship deferment counts as a qualifying monthly payment toward the Repayment Assistance Plan’s forgiveness total, with no end date attached. Other pauses, including cancer treatment, rehabilitation training, military service, post active-duty, national service and administrative forbearances, only count for a month that ended before July 1, 2026.
In plain terms: a general forbearance taken today buys you breathing room and nothing else. An unemployment or economic hardship deferment buys you breathing room and keeps your forgiveness clock running. A low income-driven payment does both and also chips away at the balance.
How much lower would my payment be on an income-driven plan?
For a borrower with a $45,000 balance, the Standard 10-year payment is $511 a month regardless of income. On the Repayment Assistance Plan or IBR, the payment tracks earnings instead, and at lower incomes it falls dramatically. These figures were computed with the Finology Software parity-verified engine:
| Annual income (AGI) | Standard (10-year) | RAP | IBR |
|---|---|---|---|
| $28,000 | $511 / mo | $47 / mo | $34 / mo |
| $38,000 | $511 / mo | $95 / mo | $117 / mo |
| $50,000 | $511 / mo | $167 / mo | $217 / mo |
At $28,000 of income, the gap between the Standard payment and RAP is $464 a month. That is the difference between a bill you miss and a bill you pay. Notice too that the cheapest plan changes with income: IBR is lower at $28,000, while RAP is lower at $38,000 and $50,000. There is no single right answer, which is why running your own numbers matters more than following general advice.
Can my student loan payment be $0?
Yes, on IBR and the other older income-driven plans, but not on RAP. Under 34 CFR 685.209(g)(3), if your calculated monthly payment on those plans is less than $5, the monthly payment is $0, and if it is at least $5 but less than $10, the payment is $10. RAP has a hard floor: if the calculated RAP payment is less than $10, the monthly payment is $10, though the final payment may be less.
RAP’s payment is built from a base payment tied to your income. Under 34 CFR 685.209(e)(2), that base is $120 a year for an AGI of $10,000 or less, then steps up by one percentage point per $10,000 of income, from 1% of AGI to 10% of AGI above $100,000. That annual figure is divided by 12, then reduced by $50 for each dependent you claim.
How long until the balance is forgiven?
On the Repayment Assistance Plan, the remaining balance is forgiven after you have satisfied 360 qualifying monthly payments, or the equivalent, over a period of at least 30 years, per 34 CFR 685.209(k)(7). Qualifying payments include on-time RAP payments, payments made under the Tiered Standard plan, IBR payments, and the unemployment and economic hardship deferment months described above. If you work in public service, Public Service Loan Forgiveness remains a much shorter path.
What changes for loans disbursed on or after July 1, 2027?
Newer loans lose most of the pause options. For loans disbursed on or after July 1, 2027, a borrower may not receive an unemployment deferment or an economic hardship deferment at all (34 CFR 685.204(f)(1)(ii) and (g)(1)(ii)). General forbearance is capped as well: for those loans the Secretary grants forbearance for a period that does not exceed nine months within a 24-month period (34 CFR 685.205(c)(1)(ii)), instead of the up-to-one-year, renewable forbearance available on older loans.
Borrowers with loans disbursed before that date keep the current rules on those loans. If you are choosing between pausing and lowering your payment, this is one more argument for lowering it: an income-driven plan is not rationed the way forbearance is about to be.
What should I do first if I can’t make this month’s payment?
- Do not wait for default. You have roughly nine months of missed payments before default, but interest and credit damage start well before that.
- Price the income-driven plans against your actual income. As the table shows, the same borrower can save more on RAP or on IBR depending on where their income falls.
- Apply for the plan, not the pause. A lower payment keeps your forgiveness clock running and reduces the balance. A general forbearance does neither.
- If your income is genuinely zero, check deferment eligibility. Unemployment and economic hardship deferment months still count toward RAP forgiveness, unlike general forbearance.
- If you are already behind, you still have options. Under 34 CFR 685.209(f)(4), Direct Subsidized, Direct Unsubsidized, graduate PLUS and non-excepted Direct Consolidation loans are eligible for RAP, including defaulted loans.
Frequently asked questions
Is it better to defer student loans or lower the payment?
Lowering the payment is usually better. An income-driven payment reduces your balance and counts toward the 360 qualifying payments needed for forgiveness under RAP. Deferment pauses payments, and while unemployment and economic hardship deferment months do count toward RAP forgiveness, interest still accrues and capitalizes on unsubsidized and PLUS loans during deferment.
Does forbearance count toward student loan forgiveness in 2026?
Generally no. Under 34 CFR 685.209(k)(8), most deferment and forbearance months only count as qualifying payments toward RAP forgiveness if the month ended before July 1, 2026. The exceptions that still count with no end date are unemployment deferment and economic hardship deferment months.
Can I get on an income-driven plan if I am already in default?
Yes for RAP. Under 34 CFR 685.209(f)(4), Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans made to graduate or professional students, and Direct Consolidation Loans that are not excepted consolidation loans are eligible to be repaid under the Repayment Assistance Plan, including defaulted loans. Deferment is different: under 34 CFR 685.204(a)(3), a borrower whose loan is in default is not eligible for a deferment unless the borrower has made satisfactory payment arrangements.
How much is the minimum student loan payment on RAP?
Ten dollars a month. Under 34 CFR 685.209(g)(3), if the calculated RAP monthly payment is less than $10, the monthly payment is $10, except that the final payment may be less than $10. On IBR and the other older income-driven plans, a calculated payment under $5 becomes a $0 monthly payment.
How long does it take to default on a student loan?
For most federal student loans, default occurs after more than 270 days without a payment, roughly nine months, per the Consumer Financial Protection Bureau. Before that point you can still change repayment plans, request a deferment or forbearance, and avoid wage garnishment and tax refund offset.
See your own numbers
Every number above is specific to one set of assumptions. Yours will differ with your balance, rate, loan types, family size and income. You can run your own figures with the RAP payment calculator, and if you would rather have someone walk the tradeoffs with you, borrowers can work with a financial advisor who uses Finology Software to see the real numbers side by side before choosing a plan.
Put your plan where you can see it
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