The New York Times: It’s Time to Pay Your Student Loans. What Happens if You Fall Behind?

The New York Times: It’s Time to Pay Your Student Loans. What Happens if You Fall Behind?

After a more than three-year hiatus, student loan repayments have now resumed. The good news for those who may struggle with those repayments is that the U.S. Department of Education has assured student loan borrowers that missed payments for this next year will not be reported as delinquencies. That being said, those who do not resume payments may see some negative impact as their loan balances now begin accruing interest, though not as big an impact as a delinquency.

So, if you miss a student loan payment, will your credit score be impacted? And if so, when?

To help answer this question, Dr. Rikard Bandebo, EVP and Chief Product Officer at VantageScore, recently spoke with the New York Times on what borrowers can expect should they miss a student loan payment.

“It is pretty good news for borrowers because those who now have the ability to start repaying will see a positive impact,” said Rikard Bandebo, executive vice president and chief product officer at the credit score company VantageScore, “and those that don’t yet have the means to start repaying have about a year to plan.”

Read the full story here: https://www.vantagescore.com/the-new-york-times-its-time-to-pay-your-student-loans-what-happens-if-you-fall-behind/

#VantageScore #NewYorkTimes #studentloans #credit education #ytshort #ytshorts

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