Problems Repaying Your NYHELPs Loan

Don’t wait to seek help.

If you anticipate a problem repaying your NYHELPs loan, or are having trouble making your monthly payment, HESC’s Delinquency Resolution Team is available to help you avoid or resolve delinquency. Contact HESC and explore your options with a Team Member.

There may be several repayment options available to help you:

Modified Payment Plan 

Borrowers and their cosigners may apply for a temporary reduced monthly payment obligation, or a monthly Modified Payment Plan (MPP). This program will, for a defined period of time, provide lower monthly payments on your loan. Approval does not extend the repayment schedule timeframe; therefore, at the conclusion of any approved MPP period, the monthly loan payment will be recalculated, raising the monthly and total costs of the loan.

Economic Hardship Forbearance 

You can request Economic Hardship Forbearance (EHF) if you and your cosigner are unable to make payments and don't qualify for an MPP. If approved, an EHF is available for no more than one year over the life of the loan. As with the MPP, approval does not extend the repayment schedule timeframe; therefore, at the conclusion of any approved EHF, the monthly loan payment will be recalculated, raising the monthly and total costs of the loan.


For more information, contact HESC at 866-312-9449 or email This email address is being protected from spambots. You need JavaScript enabled to view it..

You may also want to consider contacting a budget planner/counseling service. Budget planners provide money management, debt reduction and financial education services. The New York State Department of Financial Services maintains a list of licensed budget planners.

Consequences of Default

If your loan becomes 180 days past due, you will be deemed in default. Some consequences of default include:

  • Possible wage garnishment;
  • Possible loss of State tax refunds;
  • Damage to your credit rating;
  • Loss of deferment and forbearance benefit options;
  • Loss of future State student financial aid (TAP, grants and loans);
  • Possible loss of employment opportunities; and
  • Collection costs added to your balance.


If your NYHELPs loan is in Default, you can get help to restore your loan to good status. Contact HESC's Default Management Team at 866-991-4372 or This email address is being protected from spambots. You need JavaScript enabled to view it.