Millions of Americans have seen their credit scores plummet after missing student loan payments, severely limiting their ability to rent apartments, secure loans, and find employment, compounding economic pressures nationwide, The Washington Post reported.
According to a recent Federal Reserve Bank of New York analysis, millions of Americans are grappling with significantly lower credit scores due to delinquent student loans, complicating their financial lives at a time when borrowing costs remain historically high.
The study found that in the first three months of 2025, about 2.2 million borrowers experienced credit score drops of more than 100 points, while more than a million saw their scores decline by at least 150 points—a decrease comparable to the impact of personal bankruptcy filings. Approximately 2.4 million borrowers previously held favorable credit ratings, enabling access to affordable loans or mortgages before these delinquencies were reported.
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