If your credit has dropped recently, it could be because of your student loans.
Missed payments can remain on a borrower’s credit report for up to seven years.
Why did my student loans cause my credit score to drop?
Delinquent vs. default
When you miss a payment or pay late, your loan becomes delinquent.
If you don’t make any payments for 270 days, you’ll default on the loan.
When are payments expected to start?
Simply put, federal student loan payments are due now and have been for more than a year.
What about SAVE borrowers?
One option is to apply for anincome-driven repayment plan, which can potentially help lower your monthly payments.
you could also apply to consolidate your loans on the federal student aidwebsite.
Consolidating your loans lets you combine multiple loans into a single monthly payment.
Every path to repairing your credit requires time and effort.
Here’s what it’s possible for you to do now.
However, late payments on student loans will still appear on your credit reports.
