If You're Behind on Student Loan Payments, Your Credit Score May Have Already Dropped

More than 9 million student loan borrowers could see a drop in their credit score for late or missed payments now that lenders can report delinquencies, according to the Federal Reserve Bank of New York. Borrowers had previously benefited from pandemic forbearance and protections that prevented loan servicers from reporting delinquent borrowers to the credit bureaus. But starting this week, lenders can again begin reporting people who are behind on payments, which could significantly impact borrowers' credit scores. Credit scores could drop by more than 150 points for some borrowers and will likely result in "reduced credit limits, higher interest rates for new loans and overall lower credit access" for affected borrowers, according to a Federal Reserve Bank of New York report posted Tuesday. Consumers who have student loan payments at least 90 days past due should expect an impact on their credit, if they haven't seen one already. Missed payments can remain on a borrower's credit r ... Read full article.