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Student-Loan Freeze Led to Big Credit-Score Gains, N.Y. Fed Says

  • Some 30 million student borrowers saw scores rise, study says
  • Freeze is set to expire on Aug. 31 but Biden may extend it

The pandemic-era freeze on student debt payments has “dramatically” improved credit scores for Americans who borrowed money to pay for college, the Federal Reserve Bank of New York said. 

About 30 million people saw improvements in their risk profile, with the biggest gains going to borrowers who were delinquent before the pandemic, New York Fed economists said in a blog post on Tuesday. They were summarizing the findings of an annual report on US student debt, which exceeds $1.7 trillion in total.