What happens if I can't make my Direct Loan payments on time?

If you are unable to make your Direct Loan payments on time, it is essential to take prompt action to avoid any negative consequences. Firstly, contact your loan servicer immediately to discuss your situation. They can provide you with valuable guidance and potential options such as income-driven repayment plans, deferment, or forbearance programs. These alternatives can help temporarily suspend or reduce your payments based on your financial circumstances. However, keep in mind that interest may still accrue during deferment or forbearance. Additionally, missed or late payments can impact your credit score, so it's crucial to communicate with your loan servicer and explore alternative repayment options to maintain a healthy credit history. It is always advisable to address any financial difficulties proactively to ensure the best possible outcome for your loan repayment.