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Missed Student Loan Payments Will Hurt Your Credit Again. What to Know.
https://www.nytimes.com/2024/09/30/your-money/student-loans-credit-score.htmlarchive link: https://archive.ph/SsIkh
It has been one year since federal student loan payments resumed after a 42-month pandemic-related pause, but borrowers have been receiving one benefit: Missed payments didn’t damage their credit standing.
That’s about to change.
The Biden administration provided borrowers with a yearlong “on-ramp” to help them ease back into the repayment routine. Missed bills weren’t reported as late or delinquent, and borrowers weren’t placed in default or reported to collection agencies. This ended on Sept. 30, and October will usher in a return to business as usual.
Many borrowers may be confused. The eight million people enrolled in the repayment program known as SAVE, for example, had their payments frozen because of legal challenges from several Republican-led states — and those bills are still on hold.
That’s about to change.
The Biden administration provided borrowers with a yearlong “on-ramp” to help them ease back into the repayment routine. Missed bills weren’t reported as late or delinquent, and borrowers weren’t placed in default or reported to collection agencies. This ended on Sept. 30, and October will usher in a return to business as usual.
Many borrowers may be confused. The eight million people enrolled in the repayment program known as SAVE, for example, had their payments frozen because of legal challenges from several Republican-led states — and those bills are still on hold.
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