1A Federal Student Loan Repayments Are Due, Again
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May 6, 2025 Join Mike Pierce, the Executive Director and co-founder of the Student Borrower Protection Center, and Danielle Douglas-Gabriel, a national higher education reporter for The Washington Post. They dive into the resumption of federal student loan payments affecting over five million borrowers. The duo discusses the impact of looming collections, including potential garnishments of Social Security and tax refunds. They also tackle the complexities of repayment options, staffing shortages in support centers, and the broader implications of student debt on the economy.
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Credit Score Hits from Student Loans
- Hunter's credit line dropped by $10,000 unexpectedly due to student loans.
- He had 16 delinquent student loan accounts affecting his credit score by 200 points.
Early Credit Damage Hidden
- Credit damage starts well before default, after only a couple missed payments.
- The student loan system suppressed credit reporting during the payment pause, hiding delinquency impacts till now.
Get Help to Avoid Default
- Don't ignore student loans; contact studentaid.gov or phone support for help.
- Income-driven repayment plans can get you out of default and protect public benefits from collections.