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Millions of student borrowers are at risk of credit-score falls

More than nine million student-loan borrowers are set to see their credit scores drop in the first half of this year, according to Federal Reserve Bank of New York estimates published this week. The hits are expected after borrowers failed to resume payments with the end of pandemic-era relief on loans.


 

“It is reasonable to expect student loan delinquency to surpass prepandemic levels when new delinquencies hit credit reports,” the New York Fed said in a blog post Wednesday.

Tags

credit, lending, student loans