Story perspectives

10 Million Borrowers Face Credit Dips After Loan Pause

4/24/2025

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Summary

Story summary

Nearly 10 million federal student loan borrowers risk credit score drops of over 150 points due to delinquency.
The Biden administration's student loan on-ramp ended on September 30, 2024, leaving many borrowers unpaid.
Delinquencies started in January, with servicers reporting after 90 days past due.
Borrowers should verify loan status, update contact information, and reach out to servicers for assistance.
Restoring payments can enhance credit scores and support mortgage eligibility despite delinquency challenges.

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Story summary

Nearly 10 million federal student loan borrowers risk credit score drops of over 150 points due to delinquency.
The Biden administration's student loan on-ramp ended on September 30, 2024, leaving many borrowers unpaid.
Delinquencies started in January, with servicers reporting after 90 days past due.
Borrowers should verify loan status, update contact information, and reach out to servicers for assistance.
Restoring payments can enhance credit scores and support mortgage eligibility despite delinquency challenges.