Federal Student loan borrowers do not have to worry about late student payments on their credit reports. Here’s why.
Federal Student Loan Borrowers Falling behind on loan payments could hurt their credit, but Federal Student Loan Borrowers might have some flexibility there
Millions of Federal student loan borrowers were no doubt hoping to avail of debt forgiveness of President Biden’s plan. But when the Supreme Court disapproved the Federal student loan forgiveness plan at the end of June. The Federal student loan borrowers faced the reality that their student loan payments would soon resume.
Federal student loan borrowers could pause their loan payments during the pandemic. But now, Federal student loan borrowers will resume paying this fall.
Federal student loan borrowers should contact their loan servicer so that the Federal student loan borrowers understand what expenses need to pay first. And Federal student loan borrowers should do everything to keep up with those payments.
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If Federal student loan borrowers fall behind, they may get a bit of exculpation from a credit score
The credit score of Federal student loan borrowers won’t take an immediate beating if they are late.
But given the adjustment to pay the student loans, the Department of Education directed that student loan delinquencies not be reported to the credit offices until September 30, 2024.
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