Navigating Student Loans During the Holiday Season

As the holidays approach, many borrowers are feeling the strain of balancing celebration with financial obligation. For millions, student loan payments are part of that burden, whether they’re delinquent, on the SAVE plan, or in default. The key takeaway this season? You’re not alone, and even small, informed steps now can make a big difference before the new year begins.

For Borrowers Who Are Delinquent

If you’ve missed a few payments and are feeling overwhelmed, the holidays can magnify that stress. But here’s the truth — delinquency doesn’t have to spiral into default. What to do:

• Contact your servicer before the year ends. Even if you can’t make a full payment, asking for a temporary forbearance or exploring income-driven repayment (IDR) can stop further damage.

  
  

• Consider consolidation. This can bring your loans current and reset your payment due date, often lowering the amount due under an IDR plan.

  
  

• Don’t ignore communication. Servicers are required to reach out before your loan goes into collections. Staying responsive can preserve more options for you.

  
  

• This is also a great time to seek expert assistance if you’re unsure of your next move — an SDS expert can help review your eligibility and map out a realistic recovery plan.

For Borrowers on the SAVE Plan

The SAVE plan remains paused in legal limbo, but the financial clock is still ticking — interest resumed in August 2025. If you’re on SAVE:

• Your paused payments aren’t hurting you, but interest is accruing. Review your balance and watch how interest is building each month.

  
  

• Consider alternative repayment plans. Some borrowers may benefit from moving into an IDR plan under a forbearance period that keeps payments paused but resets timelines going into the new year.

  
  

• Reassess your income. If your circumstances have changed since your last recertification, use this time to prepare your income documentation so your next recertification reflects your current ability to pay.

  
  

• Think of it as a financial tune-up — getting organized now could prevent surprises in January when new repayment rules or SAVE updates take effect.

For Borrowers in Default

If your loans are already in default, this is not the time to ignore them — but it’s also not the time to panic. What you should know:

• Collections can resume at any time; Wage garnishment, tax refund offsets, and Social Security withholdings are possible, though they may not happen immediately.

  
  

• You still have paths to recovery — through Rehabilitation, Consolidation, or potentially through cancellation programs depending on your loan history and employment type.

  
  

• Don’t wait until the new year to act — this is the season to set yourself up for a fresh financial start.

  
  

A Final Word: Take Stock Before You Spend

The holidays are meant for joy, but that joy feels better when you know your finances are under control. Taking time to check your loan status, evaluate your repayment plan, and reach out for help if needed can give you peace of mind heading into 2026.

Student Debt Solutions offers free analysis and expert guidance to help you understand your true repayment position because the best gift you can give yourself this season is financial clarity.

Find Out Where You Stand: Visit Student Debt Solutions to review your repayment options, understand your next steps, and enter the new year with a plan you can feel confident about.