After more than three years of paused payments, millions of borrowers are now dealing with the return of student loan bills, and the impact is already being felt. With the end of forbearance, many borrowers are struggling to make payments, and some are seeing their credit scores drop due to delinquency.
Important: Unlike other loans, student loans aren’t reported as late until they reach 90 days past due. This means if you’ve missed a payment, you may still have time to bring your account current before it affects your credit.
With the new administration, many changes are happening, and some repayment plans, like the old REPAYE plan, have been removed. It's unclear if this is temporary or permanent, and borrowers need to be proactive. The best thing you can do right now is to contact your loan servicer, even if you haven’t seen a late payment on your credit report yet.
What to Do If You've Already Been Reported Late
If you’ve already received a 90-day late payment, here’s what you should do:
- 📞 Call your loan servicer immediately and request a goodwill adjustment.
- 🔍 Check your credit report for errors—incorrect late payments have been a growing issue.
- 💬 If you need assistance, The Dispute Coach is here to help navigate credit disputes.
Options for Borrowers Struggling to Pay
"If you’re struggling to afford payments, enrollment in an IDR plan or deferment/forbearance may still be an option. Act fast!"
The best course of action is to contact your loan servicer right away. If you can’t make the full payment, consider making at least a small partial payment to show activity on your account while exploring options.
Final Thoughts
The key takeaway: don’t wait until it’s too late. Even if you haven’t seen a late payment hit your credit yet, reach out to your servicer today and ensure you’re in good standing.
Need help addressing student loan credit issues? The Dispute Coach is here to guide you.