How Your Student Loan Payments Will Impact Your Credit

Published On Sep 30, 2024, 5:38 PM

The Biden administration's one-year waiver allowing federal student loan borrowers to miss payments without affecting their credit scores has ended as of September 30, 2024. From now on, missed or late payments will be reported to credit bureaus. While payments have resumed and interest has started accruing, borrowers have a grace period of 90 days before missed payments impact their credit reports. This could lead to increased financial strain for over eight million borrowers still navigating repayment options.

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Stock Forecasts

COFView COF chart on TradingView

Negative

With the end of the on-ramp program, there may be increased financial stress among borrowers leading to higher default rates on student loans. This could negatively impact consumer credit sectors, potentially affecting companies like credit card providers and lenders who deal with personal loans.

SOFIView SOFI chart on TradingView

Positive

As borrowers seek more affordable repayment options, there could be a surge in interest in financial advisory firms or companies that provide student loan refinancing solutions, leading to potential growth in this sector.

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