If you have Student Loans, check your credit report ASAP!
All Student Loans will be coming out of forbearance/deferment unless you’re currently enrolled in school or the military. This means if you have student loans, you’ll have to start making payments ASAP! Otherwise, your loans will fall into a default status and be reported as derogatory accounts on your credit report.
A brand-new late pay on your credit report can drop your credit scores as much as 100 points! That kind of credit score drop can have a ripple effect on your finances including paying higher fees, higher interest, higher insurance premiums, paying expensive security deposits, a reduction in your credit card limits and more costing you Thousands of Dollars!
This is why it’s imperative you check the status of your Student Loans and your Credit Report to see how they’re being reported. There are two ways to do this:
1) Go to https://studentaid.gov/ and check your Student Loan Status ASAP.
2) Check all 3 bureaus of your real credit report here: MyScoreIQ 3 Bureau Report with FICO Scores for $1.
If you have Student Loans reporting late on your credit report, we can address those negative late pays for removal and restore your credit scores. Schedule a FREE Consultation to learn the process of credit restoration here: https://calendly.com/editmycredit/30min.
If you choose to ignore your Student Loans, it could get a lot worse and cost you a lot more money, possibly putting you into serious financial hardship!
The U.S. Department of Education announced its Office of Federal Student Aid (FSA) will resume collections of its defaulted federal student loan portfolio on Monday, May 5th. The Department has not collected on defaulted loans since March 2020.
FSA will restart the Treasury Offset Program, administered by the U.S. Department of Treasury, on Monday, May 5, 2025. All borrowers in default will receive email communications from FSA over the next 2 weeks making them aware of these developments and urging them to contact the Default Resolution Group to make a monthly payment, enroll in an income-driven repayment plan, or sign up for loan rehabilitation. Later this summer, FSA will send required notices beginning administrative wage garnishment.
The Department will also authorize guaranty agencies that they may begin involuntary collections activities on loans under the Federal Family Education Loan Program. All FSA collection activities are required under the Higher Education Act and conducted only after student and parent borrowers have been provided sufficient notice and opportunity to repay their loans under the law.
Again, to avoid collections, garnishment, or worse, it’s imperative you check the status of your Student Loans and your Credit Report to see how they’re being reported. There are two ways to do this:
1) Go to https://studentaid.gov/ and check your Student Loan Status ASAP.
2) Check all 3 bureaus of your real credit report here: MyScoreIQ 3 Bureau Report with FICO Scores for $1.
If your Student Loans are reported in collections on your credit report, we can address those collections for removal and restore your credit scores. Schedule a FREE Consultation to learn the process of credit restoration here: https://calendly.com/editmycredit/30min.
If you or someone you know is struggling with debt or credit issues, please contact us for Free Credit Counseling and we will go over the many options you have to reduce your debts and maximize your credit scores. For more information, please visit www.EditMyCredit.net
