🎓 Student Loan Payments Are Back: Here’s How to Protect Your Credit
If you’ve got federal student loans, you probably enjoyed a bit of breathing room during the pandemic. Since March 2020, payments and interest were put on hold as part of COVID-19 relief. But now, that pause is potentially coming to an end—and it’s time to get ahead before your credit could possibly take a hit.
Why This Matters
With payments resuming, your loan servicers will start reporting again to the credit bureaus. That means if you miss a payment or fall behind, it can quickly show up as a delinquency on your credit report—and that can have a major impact on your credit score.
Here’s What You Should Do Now:
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Contact Your Loan Servicer Immediately
Don’t wait for a missed payment to figure things out. Call your loan servicer to confirm your due date, payment amount, and options. If you’re unsure who your servicer is, log in to studentaid.gov to find out. -
Explore Repayment Plans
You may be eligible for income-driven repayment (IDR) plans, which can lower your monthly payments based on your income and family size. If you’ve had changes in income since 2020, now is the time to recalculate your plan. -
Ask About Forbearance or Deferment Options
If you’re still struggling financially, your servicer might offer short-term solutions to pause payments without hurting your credit. -
Monitor Your Credit Report
You’re entitled to a free credit report from each bureau at AnnualCreditReport.com. Check your reports regularly to make sure your loans are reporting accurately. -
Set Up Auto Pay or Reminders
Automating your payments or setting up calendar reminders can help prevent accidental late payments.
Don’t Let Student Loans Derail Your Credit
Student loan debt is stressful enough—don’t let it sneak up and damage your credit score. Taking a few proactive steps now can save you major headaches (and money) later.