Student Loans and Credit Scores: A New Challenge for Borrowers 

For millions of student loan borrowers, 2025 has already been a bumpy ride full of uncertainty with their student loans. And sadly, the bumps aren’t smoothing out any time soon: missed student loan payments are once again impacting credit scores. With the federal forbearance period long over, lenders have resumed reporting delinquencies, leading to steep credit score drops for borrowers who have fallen behind.

What’s Happening?

More than 9 million borrowers, roughly 43% of government loans, are now past due, according to recent data. Inside sources from loan servicing companies also report that 15-20% of borrowers recently received 90-day delinquency letters and have been reported to credit bureaus. VantageScore, a major credit-scoring firm, estimates that missed payments could cause credit scores to drop by as much as 129 points. The situation is particularly alarming because many borrowers have not made payments since before the pandemic, and the grace period preventing negative reporting ended last fall.

Why This Matters

A drop in credit score can make every day financial decisions much harder. Borrowers with lower scores face higher interest rates on credit cards, auto loans, and mortgages, making it more expensive to borrow money. VantageScore projects that 2.3 million borrowers will fall into “subprime” credit territory (below 600), which could limit access to affordable lending options.

What Borrowers Can Do

Borrowers should check their loan statuses right away. Make sure to log into your servicer’s website to verify if you’re on track with your payments. Additional actions include:

• Prioritizing On-Time Payments: Even partial payments can prevent deeper credit damage.
• Consider Income-Driven Repayment Plans (IDR): These can help lower monthly payments and keep loans in good standing.
• Monitoring Your Credit Report: Stay ahead of potential errors by regularly reviewing your credit report for inaccuracies.

Student Loan Professor Can Help

Navigating student loans has never been more complicated, but you don’t have to do it alone. Student Loan Professor specializes in helping borrowers find the best repayment strategies, lower their payments, and prevent unnecessary credit damage. Our advisors can help you explore income-driven repayment plans, consolidation options, and forgiveness programs tailored to your financial situation.

Don’t let missed payments derail your financial future. Schedule a consultation today and take control of your student debt before it takes control of you.