How can late borrowers get current on their loan payments?

If a student has fallen behind on their loan payments, we have some tips to help you chip away at the overdue amount and get back to current.

Please note that, while we have compiled some helpful information, Climb is not a financial advisor. Your students should consult a professional if they have any questions or concerns about their finances.


Track spending

First off, they'll want to compile a detailed account of what their expenses are, whether they’re groceries, restaurant visits, medical expenses, utility bills, coffee runs, or anything else. This way, they'll be better able to determine where it’s possible to make cuts. There are multiple strategies for expense tracking — such as spreadsheets, banking and money management apps, receipt records, and more — so they can find the method that best suits them and their needs.


Create a budget

Once they know where their money’s going every month, it’s time to set up a budget. They should figure out which expenses are necessary and which can be reduced in order to free up more finances for loan payments. Then, they can create a plan for how much is going to be spent each month on each item.


Set up autopay

If they have trouble remembering to make a payment manually every month, it might be beneficial for them to sign up for automatic payments. This way, they won’t have to worry about losing track of the date, and a set amount will be paid automatically every month. Additionally, Climb borrowers receive a 0.25% interest rate discount, for as long as they’re signed up for autopay!


Pay more than the minimum, if they're able

Every amount they put towards loan payments gets them closer to paying off the debt as soon as possible. If they pay more than the minimum due each month, anything above that amount will go to the principal balance and lower the overall total. Of course, depending on their financial situation, it may not be possible to pay more than what’s owed, in which case it’s still important to make the minimum payment — but whenever they're able, it may be beneficial to increase the amount you send.


Choose a student loan repayment strategy

It's important to choose a debt repayment strategy that works best for each individual. Below, we have two popular methods:

  • Avalanche method
    • Order your debts from highest to lowest interest rate.
    • Each month, use any extra money you have to pay down your highest-interest debt by making more than the minimum payment amount.
    • Once that is paid off, put extra money towards the debt with the next highest interest rate, working your way down the list.
  • Snowball method
    • Order your debts from lowest to highest balance.
    • Each month, use any extra money you have to pay down your lowest- balance debt by making more than the minimum payment amount.
    • Once that is paid off, put extra money towards the debt with the next lowest balance, working your way down the list.


Find a student loan counselor

Student loan counseling can be a useful tool when it comes to managing finances. With a variety of both free and paid options available, students can look around to find the one that works best for them. However, it’s important to be cautious when signing onto a service and to be wary of potential scams — for more info on finding a counselor and what questions to ask when evaluating options, click here!


Apply for an alternative payment plan

Students who have fallen behind or who are at risk of falling behind can apply for a temporary reduction in your student loan payments. While federal student loans work differently, with private lenders, availability and terms vary. It’s also crucial to keep in mind that interest typically accrues during the deferment period. To request an alternative payment plan, we kindly ask that students contact Loan Science, our loan service partner, at or by calling (866) 311-9584.

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