What hardship options exist in Arkansas
Arkansas offers hardship programs through two main channels: the state's utility commission for households struggling to pay electric, gas, or water bills, and federal student loan servicers for borrowers facing financial strain. The state does not run a single "hardship program" — instead, you work with the specific provider (your utility company, your loan servicer, or a government agency) to request relief based on your circumstances.
For utilities, the Arkansas Public Service Commission oversees rules that require companies to offer payment plans and, in some cases, bill reductions for low-income households. For student loans, your servicer — the company that collects your payments — can place your loans in deferment or forbearance, pause collections, or enroll you in an income-driven repayment plan. The path you take depends on what you owe and who you owe it to.
Key Takeaways
- Contact your utility company directly to request a payment plan or hardship rate; the Arkansas Public Service Commission enforces rules requiring them to work with you if you cannot pay your full bill.
- For federal student loans, call your loan servicer (the company listed on your bill) to discuss deferment, forbearance, or income-driven repayment plans before you fall behind on payments.
- For private student loans, contact your lender directly — they have no legal obligation to offer hardship options, but many do to avoid default.
- Keep records of all hardship requests, the date you made them, and the name of the person you spoke with, in case you need to dispute a denial or late fee later.
Requesting hardship relief from your utility company
Call your electric, gas, or water provider and ask to speak with someone about a hardship rate or payment plan. Have your account number and a recent bill in front of you. Explain that you cannot pay your full bill and ask what options they offer. Most companies in Arkansas are required by the Public Service Commission to offer a payment arrangement — a plan that spreads what you owe across several months without shutting off service while you pay.
Some utilities also offer bill reductions or crisis information for households below a certain income. Ask specifically whether your company participates in the Low Income Home Energy information Program (LIHEAP), which is a federal program that pays utility bills directly for may have access to households. If your utility does not administer LIHEAP, contact your local Community Action Agency — they often run the program in your county and can tell you whether you meet the income limits.
If your utility company denies your request or you believe they are not following Public Service Commission rules, you can file a complaint with the Arkansas Public Service Commission. You do not need a lawyer to do this. Visit the commission's website or call their consumer services line to learn how to file.
Requesting deferment or forbearance on federal student loans
Find out who your loan servicer is by logging into studentaid.gov or checking your loan documents. Call that servicer and tell them you are experiencing financial hardship. Ask about deferment (which pauses your payments and, for some loan types, pauses interest) and forbearance (which pauses payments but interest keeps accruing). Both stop collections and late fees while you are enrolled.
Deferment is usually available only if you meet specific conditions — you are unemployed, in school, or in a medical or dental residency, for example. Forbearance is broader and available to anyone experiencing financial difficulty, but interest continues to build on most loan types. Your servicer will ask you to document your hardship: a letter explaining your situation, proof of income or job loss, or a recent tax return.
If you want to keep making payments but need them to be smaller, ask about income-driven repayment plans. These recalculate what you owe each month based on your current income, which can lower your payment to $0 if your income is very low. Income-driven plans are available for federal loans only and require you to recertify your income each year.
Requesting hardship relief on private student loans
Private student loans are not covered by federal hardship rules, so your options depend entirely on what your lender offers. Call the number on your loan statement and ask whether they have a hardship program, temporary payment reduction, or forbearance option. Some lenders will work with you; others will not.
If your lender refuses to work with you and you fall behind, the loan will go to collections. At that point, a debt collector may contact you. You have the right to request a payment plan or settlement from the collector, but they are not required to offer one. If you believe the collector is violating the Fair Debt Collection Practices Act — for example, calling before 8 a.m. or after 9 p.m., or calling your workplace after you have told them not to — you can file a complaint with the Consumer Financial Protection Bureau.
What to expect after you request hardship relief
For utilities, a payment plan usually takes effect within a few days. Your company will tell you the new payment amount and the date it is due each month. If you miss a payment on the plan, the company may end the arrangement and proceed with shutoff, so treat the plan payment as a priority bill.
For federal student loans, deferment or forbearance approval usually takes one to two weeks. Your servicer will send you a confirmation letter showing the start and end dates of the pause. Keep this letter. If you are enrolled in forbearance, interest is still accruing, so your balance will grow each month — you can choose to pay the interest as it accrues to avoid this, or let it capitalize (add to your principal) when the forbearance ends.
If you are denied hardship relief, ask why. If the reason is that you did not provide required documentation, you can usually reapply once you gather what they need. If the denial seems wrong — for example, your utility company says they do not offer payment plans when the Public Service Commission requires them to — you have the right to file a complaint or appeal.
Documents you may need to gather
For utility hardship requests, have your account number and a recent bill ready. If you are explore for LIHEAP or a utility company's income-based program, you will need proof of income (recent pay stubs, tax return, or a letter from your employer stating you are unemployed) and proof of residency (a utility bill or lease in your name).
For federal student loan hardship requests, gather documentation of your hardship: a letter explaining your situation, recent pay stubs or tax return showing your current income, or a notice of job loss or termination. Your servicer will tell you exactly what they need before you submit anything.
For private student loan hardship requests, call first and ask what documentation the lender wants. Different lenders have different requirements, and some may ask for nothing beyond a verbal explanation.
When hardship relief ends
Utility payment plans typically last three to twelve months, depending on how much you owe and what you can afford to pay. Once the plan ends, you go back to paying your regular bill. If you cannot afford the regular bill at that point, you can request another payment plan.
Federal student loan deferment usually lasts up to three years, depending on the type of deferment. Forbearance can last up to three years as well, though you may need to recertify your hardship every six to twelve months. When either ends, your regular payment resumes. If you still cannot afford it, you can request another period of deferment or forbearance, or you can enroll in an income-driven repayment plan.
If you are on an income-driven repayment plan, it continues as long as you recertify your income each year. If your income rises significantly, your payment will rise with it. If you lose your job or your income drops, your payment can drop to $0 again.
Frequently Asked Questions
Will requesting hardship relief hurt my credit score?
For utilities, requesting a payment plan does not appear on your credit report. For federal student loans, deferment and forbearance do appear on your credit report, but they are not considered delinquencies — they show that you are in a pause status, not that you missed a payment. Income-driven repayment plans also appear on your report but are not delinquencies. If you stop paying without requesting hardship relief, that will hurt your score.
Can I request hardship relief if I have already missed payments?
Yes. For utilities, call as soon as you realize you cannot pay and ask about a payment plan before service is shut off. For federal student loans, you can request deferment or forbearance even if you are already behind. Contact your servicer when ready — they can stop collection calls and late fees once your request is approved. For private loans, call your lender as soon as possible; the longer you wait, the harder it becomes to negotiate.
What happens if I cannot afford the payment plan amount?
For utilities, call your company and explain that the plan payment is still too high. Ask whether they can extend the plan over more months or lower the amount. For federal student loans, if your income-driven repayment payment is still too high, you can request deferment or forbearance instead. If you are on forbearance and still struggling, contact your servicer to discuss other options.
Do I have to pay back the interest that accrues during forbearance?
Yes. During forbearance, interest continues to accrue on most federal loan types. When forbearance ends, that interest either gets added to your principal (capitalization) or you can pay it separately. You cannot avoid paying it. Deferment is better in this way — on subsidized loans, the government pays the interest during deferment, so nothing accrues.
Can I request hardship relief more than once?
Yes. For utilities, you can request a new payment plan each time your previous one ends or if your circumstances change. For federal student loans, you can request multiple periods of deferment or forbearance over time, though there are lifetime limits on some types. Income-driven repayment plans can continue indefinitely as long as you recertify your income each year.