Sallie Mae can continue to manage the new Federal Consolidation Loan, if the borrower wishes. However, for those who have both private and public student loans, it is possible to use the special programs offered to give relief to federal loans, and then apply those savings to the Sallie Mae loan.
Some people in this situation apply for a federal income-based repayment plan and use the extra capital to pay off the Sallie Mae loan.
By using this option, a person is able to temporarily pause loan payments without facing delinquency.
A loan can only be in forbearance for up to 12 months.
If you cannot afford to repay your Sallie Mae student loan, you have options to avoid default (non-payment).
Before reading any further, stop and review your student loan contract(s) to learn if your loan is federally insured (the US government is guaranteeing repayment of the loan), or private.
First, a student can elect for graduated repayment, which is a loan that has lower monthly payments initially, which increase gradually over a 10-year period.
See the resource Default on Federal Student Loan to learn more about your rights, options, and liabilities as the borrower of a federal student loan.
If your loan is federal, Sallie Mae offers income-based repayment plan (IBR), for which you may qualify.
The first step is to speak directly with the lender.
Sallie Mae, for example, has forbearance options for those needing it.