Many or all companies we feature compensate us. Compensation and editorial research influence how products appear on a page. Student Loans Student Loan Repayment 9 Reasons Your Student Loan Payment Increased (and What to Do About It) Updated May 22, 2025 4-min read Expert Approved Expert Approved This article has been reviewed by a Certified Financial Planner™ for accuracy. Written by Catherine Collins Written by Catherine Collins Expertise: Budgeting, Mortgages, Credit, Debt, Personal loans, Small business, Entrepreneurship Learn more about Catherine Collins Reviewed by Kyle Ryan, CFP® Reviewed by Kyle Ryan, CFP® Expertise: Comprehensive financial planning, tax planning, investment planning, retirement planning, estate planning Kyle Ryan, CFP®, ChFC®, is a co-owner and financial planner at Menninger & Associates Financial Planning. He provides his clients with financial products and services, always with his client's individual needs foremost in his mind. Learn more about Kyle Ryan, CFP® Noticed your student loan payment went up and not sure why? You’re not alone. A sudden increase can be confusing—and stressful—especially if you’re on a tight budget. But before you panic, know that there are several common (and often fixable) reasons this can happen. In this guide, we’ll walk you through the most likely reasons your student loan payment increased and what you can do if the new amount doesn’t fit your budget. Table of Contents 1. You’re on a graduated repayment plan 2. You switched repayment plans 3. You consolidated your loans 4. Your deferment or forbearance ended 5. Your income increased 6. Your family size changed 7. You forgot to recertify 8. You have a variable interest rate 9. Your loan servicer made an error What if you can’t afford the new payment? 1. You’re on a graduated repayment plan Loan type: Federal Graduated repayment plans start low and increase every two years. If you’re on one, this is likely why your payment went up. You can switch to a different plan if the new amount doesn’t fit your budget. Typically, lenders and loan servicers will send out a letter or other form of notification that the minimum payment is increasing. Depending on the reason, I would expect this to come at least a month before the increased payment is due. Kyle Ryan , CFP®, ChFC® 2. You switched repayment plans Loan type: Federal Moving from an income-driven or extended plan to a standard plan often results in a higher fixed payment. Be sure to confirm what plan you’re currently enrolled in by logging in to your loan servicer’s portal. 3. You consolidated your loans Loan type: Federal Consolidation can simplify your repayment into one monthly bill, but it may lead to a higher payment, especially if your original loans had different rates, terms, or due dates. 4. Your deferment or forbearance ended Loan type: Federal and private When these temporary relief periods end, your payments resume—possibly higher if interest accrued and was added to your loan balance during the pause. 5. Your income increased Loan type: Federal If you’re on an income-driven repayment plan, your payments adjust annually based on income. A raise, promotion, or new job may result in a higher monthly payment after recertification. 6. Your family size changed Loan type: Federal Fewer dependents can lead to a smaller income-driven repayment allowance, increasing your monthly payment. This could happen after a divorce or if a dependent ages out. 7. You forgot to recertify Loan type: Federal Missing the annual recertification deadline for an IDR plan can raise your payment to the standard plan amount. This change can be dramatic and often happens automatically. 8. You have a variable interest rate Loan type: Private Variable-rate loans fluctuate with market conditions. If interest rates rise, so will your monthly payments. This is common among private student loans, especially those refinanced years ago. 9. Your loan servicer made an error Loan type: Federal or private It’s rare, but errors do happen. Misapplied payments, incorrect income calculations, or faulty autopay settings can cause surprise increases. Always review statements and contact your servicer if something seems off. What if you can’t afford the new payment? If your student loan payment increased and you’re struggling to keep up, contact your loan servicer right away. You may qualify for relief or a new repayment plan. Read more: 8 Ways to Lower Your Monthly Student Loan Payment Options may include: Income-driven repayment (IDR) plans Deferment (may be interest-free on Subsidized Loans) Forbearance (interest usually accrues) Loan forgiveness programs (like PSLF) Consider refinancing if you have private loans If you have private student loans and a solid credit score, refinancing could help you lock in a lower interest rate or stretch your repayment term to reduce monthly payments. Credible lets you compare multiple lenders without affecting your credit score, so it’s a convenient way to shop for offers with no obligation. Note: Refinancing federal loans into a private loan means giving up federal protections, so weigh this option carefully.