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1 posts on "shadow delinquency"
March 26, 2025

Credit Score Impacts from Past Due Student Loan Payments

Daniel Mangrum and Crystal Wang

Decorative photo: Young Male Decorative photo: Student In Graduation Gown holding a student loan invoice as the rolled up degree

In our companion post, we highlighted how the pandemic and subsequent policy actions disrupted trends in the growth of student loan balances, the pace of repayment, and the classification of delinquent loans. In this post, we discuss how these changes affected the credit scores of student loan borrowers and how the return of negative reporting of past due balances will impact the credit standing of student loan borrowers. We estimate that more than nine million student loan borrowers will face significant drops in credit score once delinquencies appear on credit reports in the first half of 2025. 

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Posted at 10:01 am in Household Finance, Student Loans | Permalink | Comments (7)

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Liberty Street Economics features insight and analysis from New York Fed economists working at the intersection of research and policy. Launched in 2011, the blog takes its name from the Bank’s headquarters at 33 Liberty Street in Manhattan’s Financial District.

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