Student Loan Restart: 100-Point Credit Score Drops Exposed
Over five million Americans just felt the hit: federal student loan repayments resumed, and credit scores plunged—often by 100–177 points. In this crucial episode, Tim Lucas and Craig Berry unpack the fallout and explain what it means for your mortgage chances. You’ll learn:
- The Score Shock: How the end of the 43-month payment pause and the October 2024 on-ramp expiration triggered 2.2 million borrowers to lose 100 points—and another 1 million to lose 150+ points
- Age & Geography: Why borrowers over 40 (especially those over 60) are hardest hit, and how states like Mississippi (45% default) and Kentucky (34%) face deeper housing-market risks
- Mortgage Roadblocks: How plummeting scores and wage garnishments for defaulted loans slam your debt-to-income ratio—potentially shutting you out of prime loans or any mortgage at all
- Generational Wealth: The broader impact on mid-career and soon-to-retire homeowners, including diminished home-equity growth and fewer resources to help the next generation
- Recovery Options: Paths back to score health through income-driven plans, the SAVE program, and consolidations—plus tips for navigating overwhelmed servicers
For the full article and data deep dive, visit:
https://www.mortgageresearch.com/articles/student-loan-holders-credit-score-drops/
https://www.mortgageresearch.com/articles/student-loan-holders-credit-score-drops/
