Even if you are already enrolled in one of these payment programs, it is possible to switch them should your financial situation change or if you fit the criteria for one better than another. When you graduate, you should talk to the financial aid office of your school and see if they can give you advice on how you can pay off your loans the most efficiently. They are there to help you finance your education, and should take advantage of their services.
Regardless of which plan you choose to repay your student loans with, and whom you consult for advice, you will have to keep the monthly payments coming in order to prevent default. Default is when you fail to make payments for nine months or greater. The first several months of missed payments will make your loans delinquent, eventually leading into default. Both of these terms are bad news, and should be avoided at all costs as you begin repaying your student loans.
If you miss a payment and your account goes into delinquency status, you will be charged late fees and the tardiness will be reflected on your credit rating. This can then lead to problems down the road when you are looking to apply for other loans. If your account goes into default, the penalties can be much more severe, and can go as far as you being taken to court. It is now easy to see why these loans have to be repaid exactly according to schedule, regardless of the payment plan.
It is important to note that there are other options available should you know ahead of time that you’re going to have trouble repaying your student loans. You apply for deferment, which grants you a temporary break from your repayment schedule. Reasons can range from having trouble finding a job, to going back to school, to volunteering for a service. There is also a lesser form of deferment known as forbearance. This is not complete exemption from loans, but will often times make the payments more manageable during hard times. If you are committed to making your loan payments on time, there are always ways to avoid slipping into delinquency. Keep in touch with your lender as well, so if problems arise they can work with you to find a prompt solution.