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How To Keep Late Student Loan Payments From Hurting Your Credit Score
2025-04-21 01:45:03| Spiritual Career Counseling
For the first time since the start of the Covid-19 pandemic, borrowers with federal student loans are dealing with the credit-related consequences of late payments and letting their student loans go into default. This can include damage to credit scores, along with the prospect of penalties and collection activities including the seizure of wages, tax refunds, and even Social Security benefits.This change may seem out of the blue, but it comes at the end of a long list of temporary fixes put in place to help borrowers struggling to repay loans during an unprecedented time (the pandemic). The U.S. Department of Education temporarily paused monthly payments on federal student loans while freezing interest rates at 0% from March 2020 through the end of September 2023, after which a 12-month on-ramp period was offered borrowers even more time.Student loan companies didnt report late payments or loans in default during the 12-month on-ramp, but that ended on Sept. 30, 2024.Now that we're w...
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