Americans Face Credit Hit as Student Debt Goes Delinquent Again
- Late payments will be reported to credit bureaus from October
- Biden’s debt relief plans helping some borrowers stay current
Graduates at a ceremony in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Millions of Americans are falling behind on student loan payments a year after the pandemic freeze ended – and soon that will start hurting their credit scores.
In a report released last month, the Government Accountability Office estimated that about 10 million borrowers – more than one-quarter of the total – were behind on payments as of the end of January. About two-thirds of them were more than three months late, meaning they’d normally be classified as seriously delinquent.