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Student Loan Rumor of Partial Payments?

New Visitor

Student Loan Rumor of Partial Payments?

Ok, I have hard this time and time again but have not been able to get any proof. Is it true that if you make an type of payments on your student loan, despite being less than whats due, that your student loans will not go into default?

 

For example. If my Sallie Mae bill says I own $500 a month and I pay $250 every month, will my loans go into default?

 

 

Message 1 of 5
4 REPLIES
Frequent Contributor

Re: Student Loan Rumor of Partial Payments?

Yes...they will default because you are past due.  Is this a private or federal loan?  Can you get your payment reduced?
Ex-Financial Aid Officer

Ex-Student Loan Collector
Message 2 of 5
New Visitor

Re: Student Loan Rumor of Partial Payments?

I am speaking of my Federal loan. I am ok with the payment for my private loan. I have had my payments reduced based on the income sensitivty option. However, I live rent free right now but I won't be able to do that as of next year and even paying the full amount now may not be able to happen. My only option may be to do a hardship for the next year while I try to earn more money...
Message 3 of 5
Regular Contributor

Re: Student Loan Rumor of Partial Payments?


FamuChic wrote:

Ok, I have hard this time and time again but have not been able to get any proof. Is it true that if you make an type of payments on your student loan, despite being less than whats due, that your student loans will not go into default?

 

For example. If my Sallie Mae bill says I own $500 a month and I pay $250 every month, will my loans go into default?

 

 


Yes. I had to do this for several months after graduation when I couldn't afford the full amount, and they reported it late just as if I didn't pay at all. If you underpay, you'll also have to pay all the backlog to get it reporting as current again.

Message 4 of 5
Frequent Contributor

Re: Student Loan Rumor of Partial Payments?

YES, you must pay at least the minimum payment everymonth.

Message 5 of 5