Suppose you have been paying your student loan payments as promised for several years, and then your circumstances become very uncomfortable due to additional expenses or loss of income. What can you do to prevent a bad situation from getting worse? Many alumni or graduates find that they are plagued by problems beyond their control and are unable to pay all of their loan payments. Almost all lenders offer certain options to help you overcome temporary cash flow bottlenecks.

The most common strategy for temporarily postponing your student loan payment is to request a deferment or forbearance from your lender. There are several alternatives that can be considered and each one has advantages and disadvantages that you should be aware of before committing to that course. Don’t act like you’re in denial because some of the options will take time to implement and you’ll make your situation worse by waiting. The biggest mistake you can make in this situation is to ignore the increased risk and your failure to pay will put you in default.

How do you get a deferment or forbearance on your loan? These are not the same option. A deferment occurs when your lender places a temporary suspension on your student loan based on a specific condition that prevents you from paying the loan. This may include problems or opportunities such as unemployment, temporary disability, some types of community service, or going back to school at least half time. The government often pays the interest during deferment periods.

However, a forbearance occurs when your lender, at its discretion, gives you permission to reduce or stop your loan payments for a specified period of time. Interest will continue to rise. It’s usually easier to get than a deferment, but you still have to follow the rules when you apply. Forbearance may be allowed when you are already in default, but a stay is never granted when you are already in default.

To get any of these temporary solutions, you’ll need to apply with your lender. It is not automatic and you will have to prove that you have a valid reason to qualify. The period that can be granted is usually six months or so.

A much more drastic measure to consider is the cancellation of your loan. This may be awarded based on the type of loan you have and your qualifications. Some examples of a cancellation consideration are the death or permanent disability of the borrower or if the borrower takes a job teaching needy students in certain geographic areas.

If you don’t qualify for a loan deferment or cancellation, here’s what happens next. The first step when you have missed a payment is delinquency, which means you have missed a month or two. After six months, your account is past due, which is serious business. You must do everything you can to avoid being in default. You will be subject to the efforts of a collection agency and additional charges will likely be added to your past due balance. The IRS is authorized to intercept your income tax refund if you fail to respond to repeated collection efforts. Under current law, the Department of Education is authorized to garnish up to 15% of your wages if you are delinquent without having to sue you first.

I recommend that you avoid the hassles associated with the default process, although there are some means that can help you get ahead of loan collection efforts. It will be easier to start earlier by setting other options like snooze than to just ignore the prompts and wait for a surprise happy ending.