4. LEARN ABOUT WAYS TO DELAY YOUR PAYMENT

This step is about delaying your payment today, but paying more interest in the long run.

Consolidation
Deferment
Forbearance

Consolidation

Consolidation is a path that over a million graduates take each year. It basically consists of bunching all your separate student loans into one big loan, and then paying off that mother loan. If, for example, you're getting three bills in the mail every month for the three different types of loans you took out and each bill asks for $300, you're paying a grand total of $900 each month. If you simply can't afford to shell out close to a grand each month, consolidate your three loans and it'll act as if it were one loan - and you'll only owe $300 a month. Some people also choose consolidation because it's easier than keeping track of multiple student loan bills.

The downside of consolidation is, of course, the fact that it'll take longer to pay off your consolidated loans, and you'll end up paying a lot more in interest. You could, in the worst case scenario, end up paying three times your original loan amount. Also, if you plan on eventually going back to school and taking out more student loans, consolidation could mess up your chances for interest subsidy benefits on your future loans.

To find out more about loan consolidation, including whether you qualify for it (you may not), contact your lender or turn to the following resources (if appropriate):

Deferment

If you find that you simply can't keep making monthly payments, no matter how small, you can choose to defer your loans. This means that for an amount of time that's negotiated between you and your lender, you won't have to pay a cent. Interest, however, will continue to accrue if your loan is unsubsidized ("subsidized" means that the government will step in and take care of the interest.) Not everyone qualifies for loan deferment - you must contact your lender and prove that you are currently trapped in financial difficulties before they'll give you the forms to sign. Our advice: practice your hysterical voice.

Forbearance

Forbearance is a three-month break from your loan repayment, but unlike with deferments, you don't need to be reduced to eating gruel to get it. Just call up your lender and state your case: you need a couple months to put a down payment on an apartment, your dog needs surgery, you're getting married and you don't want to wear a garbage bag. Your lender doesn't necessarily have to grant you forbearance, but if your reasons for requesting one are reasonable, then you may get one.