Syndication: Treasure Coast
(New York, NY) — Millions of Americans are taking hits to their credit scores from delinquent student loans. An analysis by the Federal Reserve Bank of New York shows credit scores dropped by more than 100 points for over two million delinquent student loan borrowers. Scores fell 150 points or more for more than one million in the first three months of 2025. It’s similar to the sharp drop that follows a personal bankruptcy filing. Researchers said about two million of those previously had favorable credit scores and would have qualified for car loans, mortgages, or credit cards before the delinquencies were reported.
It is graduation season, which should be a time for celebration. However, many college graduates are now faced with a mountain of student loans, which the Better Business Bureau warns are being exploited by scam artists. The BBB says there are a number of red flags to watch for when working with third parties to handle college loan debt. One of them is if someone asks for cash up front, in order to negotiate debt relief. The other scam is when companies start the process by asking for all sorts of personal information upfront, before describing how they can help.
