Unpaid student loans impact more than just credit score
Feb 12, 2026, 2:07 PM
FILE - A sign reading "cancel student debt" is seen outside the Supreme Court, June 30, 2023, in Washington. (AP Photo/Mariam Zuhaib, File)
Credit: ASSOCIATED PRESS
(AP Photo/Mariam Zuhaib, File)
SALT LAKE CITY — Millions of people with student loans are defaulting or delinquent on their payments.
That’s according to the Federal Reserve Bank, which said these findings were from late last year.
It said the credit rating for those borrowers is dropping, making it difficult for those with student loans to buy homes or cars.
Shane Stewart, certified financial planner with DMBA, said the rule changes during the pandemic may have caused confusion and some didn’t even realize they were still on the hook for repayment.
Stewart said those who are delinquent could find money taken from their paychecks. He urged borrowers to focus on paying back their loans, explaining that it can take a decade to build up a credit rating that has been tanked.
Read more: What’s happening with forgiveness for student loans on income-based repayment plans?
