Student Loan Collection to Affect Millions of Credit Scores - VantageScore on ABC News
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Published May 2, 2025
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VantageScore reports that late college loan payments can result in a credit score loss of up to 129 points, as highlighted by a recent article ABC News. On a positive note, student loan borrowers who make payments on time can see credit score increases of up to eight points.

Roughly five million borrowers will resume their student loan collections beginning May 5, according to the Department of Education. The Federal Reserve of New York expects that more than nine million student loan borrowers will face “significant drops” in their credit score when delinquencies resume over the first half of 2025.

VantageScore’s Student Loan Analysis notes that student loan borrowers who are making their payments on time are already benefitting, and predicts that the average score for the U.S. population will decline from 702 to 700 by the summer of 2025.

Check out VantageScore’s Student Loan Analysis here:

https://www.vantagescore.com/consumers/blog/vantagescore-analysis-finds-benefits-for-borrowers-who-resume-student-loan-payments-while-many-will-see-lower-credit-scores

https://abcnews.go.com/Business/collections-set-begin-millions-defaulted-college-loans-heres/story?id=121371168

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