A fresh look at data reveals a troubling trend: a large share of federal student loan borrowers are falling behind on payments. When that happens, negative marks start showing up on credit reports, pulling down credit scores — sometimes steeply. Because credit scores affect everything from interest rates to whether you can lock in a mortgage or get a car loan, these slips in repayment behavior carry weighty consequences.
Some drivers behind this include: people juggling higher costs of living and inflation, job instability, and in some cases, loans entering repayment after months or years of forbearance or pause. The shift from pandemic-era payment relief back into full repayment is creating shockwaves in many individual credit profiles.
Credit isn’t just a number — it’s the map of your financial trustworthiness. When student debt is reported late, it’s not just a payment missed — it’s your creditworthiness taking a hit that can echo across years of borrowing and opportunity.