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 NM 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 or you may be eligible to have your debt forgiven.

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


• Loss of job or inability to find a job


• Economic hardship


• Birth or adoption of a child
• 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

Print a deferment form for Stafford Loans or Perkins Loans

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

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:

• School closure


• Total and permanent disability


• Death

Cancellation of Perkins Loans may be an option if you are working in an eligible profession in an under served area. Some professions that may qualify:

• Teacher


• Nurse


• Child or family service agency


• Law enforcement


• Early intervention


• Peace Corp volunteer


• Military service

For specific requirements concerning cancellation options, print the Perkins Request for Cancellation form or email perkins@nmstudentloans.org.

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

There are serious consequences to NOT resolving your delinquency

It is extremely important to contact NM Student Loans before missing your first payment so that arrangements can be made before your loan becomes delinquent. If you don't make your payments, your loan may go into default. There are many options available to help meet the repayment obligation on your student loan. Some consequences of default may include, but aren't limited to, the following:

• You may have litigation brought against you.


• Your wages may be garnished.


• Part or all of your state and/or federal tax refund may be intercepted.


• Due to legal judgment, you may have a lien placed on present and future properties.


• You will lose eligibility for any additional federal student financial aid.


• You will lose the cost saving benefits of the Advantage Program


• Deferment and forbearance will no longer be available to you.


• Your default will be reported to all national credit bureaus and your credit will be affected for many years.

Learn how to recover from default.

We can help

Please call New Mexico Student Loans at 1-800-279-5063 or 345-3371 or contact us by email.