Story perspectives

Late Student Loan Payments Hit Millions, Credit Scores Plummet

4/21/2025

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Summary

Story summary

The U.S. government has resumed reporting late student loan payments, affecting millions of borrowers' credit scores.
Nearly 9.7 million borrowers were late on payments as of early 2025, indicating confusion during the repayment transition.
The Department of Education's "on-ramp" period protects late payers from penalties until September 2024, but interest still accrues.
Borrowers should verify loan details, explore repayment options, and monitor credit reports.
Ongoing lawsuits and legislative changes contribute to an uncertain student loan landscape for borrowers.

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Story summary

The U.S. government has resumed reporting late student loan payments, affecting millions of borrowers' credit scores.
Nearly 9.7 million borrowers were late on payments as of early 2025, indicating confusion during the repayment transition.
The Department of Education's "on-ramp" period protects late payers from penalties until September 2024, but interest still accrues.
Borrowers should verify loan details, explore repayment options, and monitor credit reports.
Ongoing lawsuits and legislative changes contribute to an uncertain student loan landscape for borrowers.