• Yosi Rahimi

What happens if I pay less than the monthly payment?

Updated: Jan 21, 2019

Paying less than the monthly amount means that your account will become delinquent. The minimum payment on your student loan is the least amount that you need to pay in order to stay current on your loan.


R. from New York, $75K of student loans debt

R. has a problem. He has difficulties making his monthly student loan repayments which stands on roughly $800 / month. He asked us if he could simply pay less each month for a while. The answer is "yes, but...".

Just paying less than the monthly amount due, means that your account will become "delinquent". The fact that you've paid some amount doesn't help you to avoid this situation, which will damage your credit score.


However, we found that by changing the repayment to REPAYE (Revised Pay As You Earn) plan, we could reduce the monthly payment to around $200/month. Yet, since R. has devised a custom plan using Money Compass, he'll be paying $500 / month for the next 6 months, thus, once he'll be able to repay more, the interest he accumulated will be lower.


Want to check how you can lower your monthly payment? Money Compass allows you to easily find the best repayment plan to fit your goals. Click here to give it a try


Have a specific question regarding your loans? Send it to FreeAdvice@moneycompass.io

#studentloans #studentdebt #repaymentplans

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