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Credit Score Impacts from Past Due Student Loan Payments

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Abstract

In our companion post, we highlighted how the pandemic and subsequent policy actions disrupted trends in the growth of student loan balances, the pace of repayment, and the classification of delinquent loans. In this post, we discuss how these changes affected the credit scores of student loan borrowers and how the return of negative reporting of past due balances will impact the credit standing of student loan borrowers. We estimate that more than nine million student loan borrowers will face significant drops in credit score once delinquencies appear on credit reports in the first half of 2025.

Suggested Citation

  • Daniel Mangrum & Crystal Wang, 2025. "Credit Score Impacts from Past Due Student Loan Payments," Liberty Street Economics 20250326b, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednls:99734
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    File URL: https://libertystreeteconomics.newyorkfed.org/2025/03/credit-score-impacts-from-past-due-student-loan-payments/
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    More about this item

    Keywords

    student loans; household debt;

    JEL classification:

    • G51 - Financial Economics - - Household Finance - - - Household Savings, Borrowing, Debt, and Wealth
    • I22 - Health, Education, and Welfare - - Education - - - Educational Finance; Financial Aid

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