Oyin Adedoyin
Appearances
WSJ What’s News
President Trump Announces 10% Across-the-Board Tariff on All Imports
More than 9 million student loan borrowers are set to see their credit scores drop in the first half of this year, and that's according to the Federal Reserve Bank of New York. We reported last month that about 43% of borrowers who owe payments on federal student loans hadn't resumed making them. And that was according to an analysis of government data by VantageScore, a credit score provider.
WSJ What’s News
President Trump Announces 10% Across-the-Board Tariff on All Imports
So that's millions of people who are either seeing that their credit scores are dropping pretty dramatically or on track to see those drops in the coming months.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
This can have ripple effects throughout the economy. It puts things like homeownership at risk or getting a new car further out of reach for late payers. And so folks who are in this position told me that this just kind of felt like a nail in the coffin.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
No, not exactly. One of the biggest things that borrowers who are experiencing this have told me is that they feel like they didn't receive sufficient communication from their student loan servicers. Student loan delinquencies are really interesting because, unlike credit card debt, student they don't really start to ping you or hit your credit report until 90 days late.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
So if you are 30 days late or 60 days late, you don't really hear anything. And at a time like this, when student loans have been paused for so long, people didn't realize that this on-ramp period ended in October. So now, you know, everyone from, you know, folks who are maybe freshly graduated from college to people who are in their 40s trying to get another house,
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
are seeing this in their credit report and kind of freaking out.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
This can have ripple effects throughout the economy. It puts things like homeownership at risk or getting a new car further out of reach for late payers. Lower scores could also mean lower credit card limits. and higher rates.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
One of the borrowers that I spoke with told me that she was just getting ready to request a higher limit on her credit card before this happened, and her credit score had dropped over 100 points. So, you know, credit companies are going to see that and tighten their lending.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
You hit it exactly right. This is a generation of people who are already feeling like the American dream is out of reach for them. Everything just seems to be getting more expensive with the lasting effects of inflation. And so folks who were in this position told me that this just kind of felt like a nail in the coffin.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
People felt like they were finally getting their head above water and some of these things saved up for a down payment, things like that. And then they get this ding on their credit report that could infringe on their possibility to obtain a home or get a car or just further their adult lives. And credit reports are things that take a long time to build up.
WSJ What’s News
Student-Loan Borrowers Hit by Steep Drop in Credit Scores
Some of these blemishes on your credit report could stay on for up to seven years. So this can be a really long-lasting negative impact for people.