Credit Score Impacts from Past Due Student Loan Payments

Daniel Mangrum and Crystal Wang

No 20250326b, Liberty Street Economics from Federal Reserve Bank of New York

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.

Keywords: student loans; household debt (search for similar items in EconPapers)
JEL-codes: G51 I22 (search for similar items in EconPapers)
Date: 2025-03-26
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