Trouble Making Payments

If you are having difficulties paying your student loan, ask for help - don't just quit making your payments. When you fall behind on your payments, you are considered delinquent on your loan. Missing payments or late payments can affect your credit rating as well as jeopardize any cost saving benefits that you may receive from the borrower benefits. There are serious consequences for not making your student loan payments.

Resolving delinquency on your loan

If you are experiencing financial difficulty, contact New Mexico Student Loans immediately and explain the situation. There may be options available to you, depending on your circumstances. You may be eligible for reduced or postponed payments for a period of time.

Deferments are one way to have your payments postponed. You must apply and be approved for deferment; they are not automatic. Common reasons for deferment include:

  • Return to school at least half time
  • Participating in certain education related programs
  • Loss of job or inability to find a job
  • Economic hardship
  • Serving on active duty in the military during a war or military operation or national emergency
  • Performing qualifying National Guard duty during a war or military operation or national emergency
  • Temporary Total Disability

To print deferment forms, visit our forms page.

Forbearance is the temporary postponement or reduction of your monthly payments. If you don't qualify for a deferment, you may want to request forbearance from your lender. Forbearance often results in extending the amount of time it takes to repay your loan. Interest continues to accrue during the forbearance period, causing the total loan amount to increase. Reasons for forbearance include:

  • Loan payment exceeds 20% of your total monthly gross income
  • A medical or dental residency program
  • Poor health
  • Experiencing temporary hardship
  • Participating in certain education related programs
  • Permanent Disability
  • Local or National emergency

To print forbearance forms, visit our forms page.

Loan forgiveness/discharge may be an option if you meet the federally mandated requirements. If you are eligible for loan discharge, your loan is forgiven and you will not have to pay it back. Possible reasons for loan forgiveness include:

To print loan forgiveness/discharge forms, visit our forms page.

In addition to deferment, forbearance, discharge or loan forgiveness, you may want to investigate the loan repayment plans. An extended, graduated, income based or income sensitive repayment plan may lower your student loan payment.