Will Sallie Mae Lower My Payment? What You Can Really Do

• Sallie Mae won’t lower your payment automatically, but you can request short-term relief like interest-only payments or forbearance.

• If they say no—or it’s not enough—you still have options like refinancing, settlement, or even bankruptcy in some cases.

• Act early. The longer you wait, the fewer options you’ll have and the harder it gets to fix.

Yes, but the options are limited—and none of them are based on your income.

Sallie Mae doesn’t offer long-term payment plans like federal student loans do, but they may approve short-term relief if you’re having trouble paying.

You won’t find these options clearly listed online, and they’re not automatic. You have to call and ask for them. But if you’re dealing with financial hardship, Sallie Mae may agree to lower your monthly payment temporarily through interest-only payments, forbearance, or other short-term plans.

Here’s what you can ask for if you can’t afford your payment—and how to make the call count.

Here’s what Sallie Mae may agree to if you’re facing financial hardship:

• Graduated Repayment Period: If you just left school, you can request 12 months of interest-only payments instead of full payments. This gives you a little breathing room early on—but you have to ask for it before you fall behind.

• Reduced Payment Plan: If you’re already in repayment, Sallie Mae may offer 6 months of interest-only payments due to temporary hardship. After that, your full payment resumes.

• Forbearance: You can temporarily pause payments entirely. Interest continues to build, so your loan gets more expensive—but it gives you time if you’re dealing with a crisis like job loss or medical issues.

• Loan Modification: In rare cases, Sallie Mae may agree to reduce your interest rate or extend your repayment term, which could lower your monthly payment. This usually requires proof of long-term financial hardship and isn’t guaranteed.

These aren’t long-term fixes—but they may help if you’re barely keeping up. If Sallie Mae says no or their offer isn’t enough, there are still other ways to lower your payment outside of them.

Related: How to Defer Sallie Mae Student Loans

What to Say When You Call

When you talk to Sallie Mae’s customer service or hardship team, be clear and direct. You don’t need the perfect script—just say what’s actually happening.

Here’s a simple way to start the conversation:

“I’m having trouble affording my monthly payment because of [job loss, medical issues, income drop]. I want to know what payment relief options you offer—like interest-only payments, forbearance, or any way to lower my monthly amount.”

Be ready for pushback or redirection. Take notes, ask for details in writing, and if the rep says no, call back and talk to someone else. Not all reps give the same answers.

If they say no—or the relief they offer isn’t enough—you still have options. Some of them may work better than anything Sallie Mae will offer.

1. Refinance With Another Lender

If your credit is solid (or you have a good cosigner), you may refinance Sallie Mae loans with a different private lender to lower your payment. This could get you a lower interest rate and spread the loan over a longer term. Related: How to Refinance Student Loans

Downside: You lose any protections or benefits tied to your current loan, and you’ll need decent credit to qualify.

2. Settle the Loan for Less Than You Owe

If you’re already behind—or heading there fast—you may be able to negotiate a lump-sum payoff for less than the full balance. This works best if you’re in long-term hardship and can come up with a lump sum (even from a family member or 401(k) loan).

Warning: Settlements can hurt your credit, but they wipe out the loan for good.

3. Use Bankruptcy to Discharge the Loan (Yes, Really)

Contrary to popular belief, private student loans can be wiped out in bankruptcy if they meet certain conditions—especially if the loan doesn’t qualify as a “qualified education loan” or you’re facing extreme hardship.

This isn’t a quick fix, but for some borrowers, it’s a clean break.

4. Get Legal or Negotiation Help

If you’re overwhelmed, can’t get through to Sallie Mae, or are dealing with collections/lawsuits, a student loan lawyer or debt relief expert can help you push for better outcomes—especially in settlement or bankruptcy cases.

It depends on how you lower your payment. Some options increase the total cost of your loan, others can affect your credit, and some may limit protections you had before.

• Forbearance: You pause payments for a few months, but interest keeps adding up. You’ll owe more over time, but as long as the forbearance is approved, it won’t count as missed payments.

• Settlement: You pay less than what you owe in a lump sum. The loan is gone, but the forgiven balance could show up on your credit report and may be taxed as income. Still, it’s often worth it if the loan is unaffordable and you’re deep in default.

• Refinancing: If you qualify, you may get a lower interest rate and monthly payment. There’s no credit damage if you keep paying—but you might lose benefits tied to your original loan, like cosigner release or discharge protections.

When your Sallie Mae payments are too high to manage, the worst thing you can do is wait. Your best option depends on how far behind you are. The earlier you act, the more leverage you have.

Here’s what to do based on your situation:

If you’re still current but struggling:

You haven’t missed a payment yet, but you’re barely keeping up. This is the best time to act.

• Call Sallie Mae and ask for hardship options. Be direct. Ask about interest-only payments, a reduced payment plan, or temporary forbearance.

• Be clear about your situation. If you lost your job, had a medical emergency, or your income dropped—say so.

• If your credit is in decent shape (or you have a cosigner), consider refinancing. This can lower your interest rate and monthly payment permanently.

• Don’t wait until you miss a payment. Once you’re late, your options start to shrink.

If you’re already late or falling behind fast:

You’ve missed payments or know you’re about to. You still have options, but timing is critical.

• Call Sallie Mae anyway. Even if you’re behind, they may offer a reduced payment plan or short-term relief.

• Start looking into settlement or refinancing. Some lenders will still refinance loans that are only slightly delinquent. If you’re in deeper hardship, a lump-sum settlement might be possible.

• Keep records of everything—calls, letters, emails. If things escalate, you’ll need proof you tried to resolve it.

• Avoid default if you can. Once your Sallie Mae loan is charged off or Sallie Mae loan is sold to collections, your negotiating power drops.

Related: What Happens When Sallie Mae Loan Defaults

If you’re in default, in collections, or being sued:

At this stage, the loan has either defaulted, been sent to a collector, or you’ve been served with a lawsuit.

• Get legal help right away. Private student loan lawsuits move fast, and you may have defenses—especially if Sallie Mae can’t prove they own the debt.

• Ask about settlement. In default, Sallie Mae or the collection agency might accept a lump-sum payoff for less than what you owe.

• Do not ignore court paperwork. A default judgment can lead to Sallie Mae garnishing your wages or even freezing your bank account. You still have time to respond—but you need to act fast.

• Consider bankruptcy for Sallie Mae loans. Some private loans can be discharged—especially if they weren’t used at an eligible school or don’t meet the legal definition of a qualified education loan.

Sallie Mae won’t lower your payment automatically—but they might offer short-term options like interest-only payments or forbearance if you ask. These can buy you time, but they don’t solve the bigger problem.

If that’s not enough—or if you’re already behind—you still have options. Refinancing, settlement, or even bankruptcy could offer a path forward. The worst thing you can do is wait and lose leverage.

Need help figuring out your next move?

Book a call with our student loan expert. We’ll help you:

• Understand what to ask Sallie Mae for

• Decide if refinance or settlement makes sense

• Avoid common traps that make things worse

• Get a plan—even if you’re already in default

We’ll make sure you leave with a clear, realistic plan you can actually follow.

Related Readings:

• Can Sallie Mae Loans Be Forgiven

• How to Get Sallie Mae to Stop Calling

• Can You Do Income Based Repayment for Private Student Loans