More than 9 million student loan borrowers could see a big drop in their credit scores this year

Quick Summary:

"This would result in reduced credit limits, higher interest rates for new loans, and overall lower credit access," according to the Federal Reserve.

Now, there is likely to be a "significant" increase in delinquencies going forward as delinquencies and other non-payments are reported to credit agencies again, the Fed reports.

And once President Joe Biden's so-called Fresh Start program, which marked all defaulted loans as current, went into effect in 2022, the median score for those with a default increased by 44 points.

---

More Pictures

---

Read Quick SummarySave Time

or

Article Details

Author / Journalist: Alicia Adamczyk

Category: EconomyBusiness

Markets: United States

Topics: Donald Trump Students Student loans and debt Credit score Loans

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2025-03-26 @ 14:00:00 (5 days ago)

News Timezone: GMT +8:00

News Source URL: fortune.com

Language: English

Article Length: 463 words

Reading Time: 3 minutes read

Sentences: 4 lines

Sentence Length: 116 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Fortune

News ID: 27353893

View Article Analysis

About Fortune

Main Topics: EconomyBusiness

Official Website: fortune.com

Update Frequency: 50 posts per day

Year Established: 1929

Headquarters: United States

News Last Updated: 8 hours ago

Coverage Areas: United States

Ownership: Independent Company

Publication Timezone: GMT +8:00

Content Availability: Worldwide

News Language: English

RSS Feed: Available (XML)

API Access: Available (JSON, REST)

Website Security: Secure (HTTPS)

Publisher ID: #95

Publisher Details

Frequently Asked Questions