If you have a deferment or forbearance on a federal student loan (including Direct Loans, Federal Family Education Loans, or a Perkins Loan) this news is for you!
On August 30, 2023, due to the new Federal Debt Ceiling Law, many deferment and forbearance plans will expire. You will be required to resume making student loan payments.
If you fail to make your student loan payment, people with high credit scores could see a 82 point drop to their credit scores.
People with medium-good credit could see a 49 point drop to their credit scores.
If that happens, you can expect your credit card rates and your auto insurance rates to skyrocket — which could be devastating!
(These statistic predictions are according to Vantage Score.)
This is June. You have three months to get your income and finances prepared to resume your student loan payments. Make your plan now!
Please pass this on to people you know who have student loans, because no one should be hit with a horrific credit score drop by surprise!
