The 8 Best Alternatives to Private Student Loan Forgiveness

Private student loan forgiveness is rare. Unlike federal loans, which offer multiple forgiveness programs, private lenders typically only discharge loans in cases of permanent disability or death.

If forgiveness isn’t an option, your best bet is to find alternative ways to manage the debt. Below, we highlight the top strategies to make private student loans more affordable and easier to repay.

Table of Contents

1. 1. Consolidation
2. 2. Refinance
3. 3. Employer assistance
4. 4. Debt relief
5. 5. Forbearance
6. 6. Lender’s flexible repayment options
7. 7. Budgeting tools
8. 8. Job-specific repayment
9. What’s best for you?

1. Consolidate your private loans

You might consolidate private student loans if your primary goal is streamlining monthly payments. When you consolidate, you take out a new loan to pay off existing loans; you then have one payment to make to a lender going forward. 

You could consolidate just private student loans or combine them with federal loans. Consolidating federal student loans (via private refinancing) with private loans means you’ll lose access to federal benefits, like deferment and forbearance programs and income-driven repayment plans. 

2. Refinance for a lower interest rate

Most borrowers refinance to get a lower interest rate. Reducing your rate can save money on interest charges over the life of the loan. 

Comparing the best student loan refinance companies can help you determine your loan options and potential rates. (We recommend Credible for this—it makes shopping super easy by allowing you to compare prequalified rates and terms with multiple lenders through one application, all at no cost to you.)

If you have less-than-perfect credit, you might consider refinancing with a cosigner. Your cosigner’s good credit could help you snag a lower rate. 

3. Seek employer assistance programs

Your workplace might offer help with private student loan repayment. Employer student loan repayment benefits may include direct payments to your lender or cash payments to you that you can apply to your loans. Either way, any help you can get reduces what you’ll spend out of pocket. 

You can talk to your employer’s human resources department or benefits coordinator to learn what student loan perks you may have access to, if any. 

4. Use debt relief services wisely

Debt relief allows you to get out of debt without paying in full by negotiating settlements with your creditors. Some companies help negotiate debt relief for private student loans on behalf of borrowers struggling to pay what they owe. 

It’s important to research reputable debt relief companies. National Debt Relief is our team’s top choice, and it works with private student loan debt.

Always consider the impact debt relief may have on your credit scores. 

5. Look into temporary forbearance or deferment

Some lenders offer temporary forbearance or deferment benefits for private student loans. These programs allow you to take a short-term break from making payments on your loans.

You can talk to your lender about whether forbearance or deferment is available and how to qualify. It’s also helpful to ask if interest will continue to accrue on your loan balance during your payment pause. 

6. Explore flexible repayment options from your lender

One of the advantages of private student loans is that many lenders offer flexible repayment. For example, you might be able to hold off on making payments while you’re enrolled in school. That could give your budget some breathing room if you’re not earning a full-time income yet and don’t have much money to spare for loan repayment. 

Lenders can also offer interest-only payments, extended repayment terms, or temporary rate reductions if you’re experiencing financial hardship. Any of those options could give you relief if your private loans feel overwhelming. 

7. Consider budgeting tools to maximize savings

Deciding where student loan repayment fits into your budget is key to managing the debt. A budget is a plan for how you’ll spend the money that you bring in each month. If you’ve never made a budget before, there are online tools that make the process easier. 

Check out our list of the best budgeting apps to get help tracking your income and expenses, as well as what you repay to your loans. Some of these apps also offer tips on paying your private loans off faster to save money on interest.

8. Look for job-specific repayment programs

Your career path may open up options for private student loan forgiveness. For example, if you’re interested in the healthcare field, several programs offer physician assistant loan repayment. You could also look into teacher student loan forgiveness if you’re working toward a degree in education. 

Note that these programs may limit how much help you can receive. There might also be a work requirement you’re expected to meet. With teacher loan forgiveness, for example, you may need to work in a certain school district or geographic area to qualify. 

What’s the best way for you to get student loan relief?

When clients need help with a strategy to repay their private student loans, we review the interest rate on their loans. If there’s an opportunity to reduce their rate by at least 0.5% to 1%, we look at refinancing options.
We also review their budget and where their student loan payment fits in that budget. If needed, we look for ways to reduce spending, increase income, or some combination of the two.

Chloe Moore, CFP®

Strategy	Best for
Consolidate your private loans	Simplifying repayment by combining loans into one with a single monthly payment
Refinance for a lower interest rate	Reducing total loan costs and monthly payments through a lower interest rate
Seek employer assistance programs	Reducing your loan balance with direct payments from your employer
Use debt relief services wisely	Settling loans for less than what you owe if repayment is unmanageable
Look into temporary forbearance or deferment	Temporarily pausing payments during a financial or personal hardship
Explore flexible repayment options from your lender	Lowering payments temporarily or adjusting terms to fit your budget
Consider budgeting tools to maximize savings	Freeing up cash to make extra loan payments and reduce debt faster
Look for job-specific repayment programs	Reducing loan balances in exchange for working in eligible career fields