Millions of student loan borrowers see credit scores drop significantly, affecting ability to qualify

From Yahoo Finance: 2025-05-19 13:41:00

Millions of student loan borrowers faced significant declines in credit scores due to missed payments, affecting their ability to qualify for new loans and credit cards. Over 2.2 million borrowers saw their scores drop by over 100 points, with more than 1 million experiencing drops of at least 150 points.

Recovering from such a hit will be a long process, potentially costing consumers thousands of dollars in higher interest rates and fees. Errors on credit reports should be checked and corrected, and strategies like improving utilization rates or becoming an authorized user on someone else’s credit card can help rebuild credit over time.



Read more at Yahoo Finance: Student loan delinquencies tank credit scores for millions of borrowers: How to recover