Reported 2 days ago
A report from the New York Fed indicates that over 9 million student loan borrowers may see significant drops in their FICO scores as delinquent loans begin appearing on credit reports after a pandemic pause. With more than 15% of student loan holders reportedly behind on payments, those affected could struggle to secure home or auto loans, as well as face reduced credit card limits. Despite the Biden administration's efforts to assist borrowers, confusion surrounding repayment options persists, raising concerns about the looming restart of involuntary collections on defaulted loans.
Source: YAHOO