Now that October is here, Student Loan borrowers are facing the reality that their loan payments are coming due – whether they’re ready to begin repayment or not. The U.S. Department of Education will not be reporting missed payments as delinquencies until a year from now. That being said, those who do not resume payments may see some negative impact as their loan balances now begin accruing interest, though not as big an impact as a delinquency.
“It is pretty good news for borrowers because those who now have the ability to start repaying will see a positive impact,” said Rikard Bandebo, executive vice president and chief product officer at the credit score company VantageScore, “and those that don’t yet have the means to start repaying have about a year to plan.”
So, if you miss a Student Loan payment, will your credit score be impacted? And if so, when?
To start to answer this question, VantageScore created several resources with consumers in mind as they plan for repayment. Our FAQ titled “39 Answers to Student Loan Questions” has answers to borrowers’ most pressing concerns as they start to chart a path forward. Additional resources are also available at VantageScore’s Student Loan Repayment Resources landing page.
Read the full New York Times story here: Time to Pay Your Student Loans. What Happens if You Fall Behind?
The post The New York Times: It’s Time to Pay Your Student Loans. What Happens if You Fall Behind? appeared first on VantageScore.