Ohio: (419) 740-5935 Michigan: (734) 887-6881

There have been many inquires from recent grads that can’t afford the minimum payment due on federal loans. Defaulting can lead to wage garnishment, tax offset, and negative credit reporting. Anyone in danger of defaulting should try contacting the servicer to work out a reasonable payment plan. In particular, look into the Income Based Repayment Plan (IBR) and Pay As You Earn Plan (PAYE) plan.

This is something that borrowers can do on their own simply by contacting the loan servicer or going to studentloans.gov.   The government website has a lot of helpful information for federal student loans.