Srdjanns74 | Istock | Getty ImagesIf you've recently lost your job or are struggling to find a new one, your student loans are bably causing you more stress than usual.The job market is flashing warning signs, with the U.S.
economy adding just 22,000 positions in August, which was below expectations, according to a Bureau of Labor Statistics report on Sept. 5.
At the same time, the unemployment rate ticked up to 4.3%, its highest level in almost four years."The slowdown in job creation might make some recent college graduates and borrowers worried," said higher education expert Mark Kantrowitz.More than 40 million Americans hold student loans, and the total outstanding debt exceeds $1.6 trillion.CNBC spoke to experts to do with your student loans if you're unemployed or unable to find a better job at the moment.Try getting a lower monthly paymentFederal student loan borrowers who are laid off from their jobs — or just not earning enough — are usually able to for an income-driven repayment plan and get a lower payment, or even a $0 bill.IDR plans limit borrowers' monthly payments to a of their discretionary income and cancel any remaining debt after a certain period, typically 20 years or 25 years.
Any unemployment benefits you collect will count as income in the U.S.
Department of Education's calculation of your monthly bill, but the payments often come out to far less than what a person was earning while employed.More from Personal Finance:Why inflation is retirees' 'greatest enemy'Student loan borrowers pausing payments have doubled since 202468 jobs may qualify for Trump's $25,000 'no tax on tips' deductionOne important thing to note: The government may calculate your monthly payment obligation under an IDR plan based on your last filed tax return, said Nancy Nierman, assistant director of the Education Debt Consumer Assistance gram in New York.But if your earnings have dropped recently, "you can vide of of your current income instead," Nierman said.You may be able to pause billsBorrowers who've been laid off may also be eligible for an Unemployment Deferment.
Under that option, the Education Department often allows you to pause your payments if you're receiving unemployment benefits or looking for and unable to find full-time employment, among other requirements.
(Some student loans will still accrue interest during the payment pause, while others will not.)There's also the Economic Hardship Deferment, for those who may be receiving public assistance or earning below a certain income level.
The number of borrowers in an Economic Hardship Deferment doubled from 50,000 in the third quarter of 2024 to 100,000 in the third quarter of 2025, Kantrowitz estimated.
Those signed up for the unemployment deferment rose to 180,000 from 140,000 over that period.There is usually a three-year lifetime limit for the unemployment deferment and economic hardship deferment, he said.Recent legislation will do away with both the Unemployment Deferment and Economic Hardship Deferment for those who take out student loans after July 1, 2027.
But current borrowers will maintain access to the relief options.If you don't qualify for either of those deferments, more student loan borrowers are eligible for a general forbearance.Whenever a borrower applies for a period of nonpayment, they should find out if interest will accrue on their debt in the meantime.
If it does, they'll have a larger balance when their payments resume.
Making payments during the deferment or forbearance to at least cover the loan interest on your debt can avoid that outcome, Kantrowitz said.Those with private student loans may find they have fewer options after a layoff.
However, experts recommend explaining to your lender that you've lost your job and asking what help might be available.