On June 30, the Supreme Court ruled to strike down the Biden Administration’s plan for student loan forgiveness. The ruling essentially increases borrowers’ financial obligations at a time when many consumers are already saddled with the costs of record inflation and other economic challenges.

Silvio Tavares, President and CEO of VantageScore, joined Bloomberg TV to speak about the potential ramifications the SCOTUS decision that strikes down the Biden relief plan as well as to share VantageScore’s recent findings on the anticipated impact of the end of the student loan forbearance period.

Recently, VantageScore®  analyzed the credit score impact of the August 2023 end of federal student loan forbearance contained in the Fiscal Responsibility Act of 2023. The company’s research indicates that a large percentage of nearly 40 million Americans who have not made payments on their federal student loans in the past three years will likely experience changes in their credit scores. Individuals who do not resume student loan payments will likely experience significant score declines, while those who resume payments will likely see their credit scores improve. 

The new Supreme Court decision rejecting the Biden administration’s student loan forgiveness program means that many borrowers who were expecting a reduction or elimination of their student debt will soon need to plan to resume their full payments.

The full show can be found here – Bloomberg Markets: Americas Full Show (6/30/23)

Silvio’s interview starts at the 11-minute mark.

Read through VantageScore’s findings on the likely impact of student loan repayment on consumer credit scores here: https://www.vantagescore.com/major-credit-score-news-new-federal-debt-ceiling-law-ending-student-loan-forbearance-to-impact-credit-scores/