Almost 10 Million Student Loan Borrowers at Risk of Significant Credit Score Drops, Fed Warns

The damage will remain on their credit reports for seven years, said experts at the Federal Reserve Bank of New York.

The Department of Education building in Washington on July 6, 2023. Madalina Vasiliu/The Epoch Times

An estimated 9.7 million federal student loan borrowers have fallen behind on their repayments since the end of the pandemic-era freeze, according to the Federal Reserve Bank of New York.

The Fed warns in an analysis released on Wednesday that those with outstanding loans that are not being paid back “will face significant drops in credit score once delinquencies appear on credit reports in the first half of 2025. ”