Federal student loan payment delinquencies to impact credit scores starting January 2025.

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Starting January 2025, the U.S. Department of Education will resume reporting late or missed federal student loan payments to credit agencies. This marks the conclusion of temporary relief measures introduced during the COVID-19 pandemic.

The payment pause officially ended in late 2023, with most borrowers resuming payments by October. To ease the transition, a 12-month “on-ramp” allowed borrowers to miss payments without entering default, though interest still accrued. Now, with this grace period over, the stakes are higher—delinquent payments will affect credit scores, and defaults could lead to collections later in the year.

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Borrowers must stay proactive. Options like income-driven repayment plans, loan forgiveness programs, or adjusted payment terms can help manage obligations. Missing payments now carries significant consequences, making timely action essential.

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Sources:

https://www.nasfaa.org/news-item/34825/ED_Delinquent_Payments_on_Federal_Student_Loans_Will_Not_Be_Reported_Until_January

https://blog.ed.gov/2024/10/whats-next-as-borrowers-return-to-repayment/

https://www.creditandcollectionnews.com/student-loans-set-for-big-credit-reporting-and-collections-changes-as-soon-as-this-week/


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