The Trump administration resumed collection on defaulted student loan payments, and borrowers who aren't paying up are seeing their credit scores hit hard.
For the Left, this is a problem. For the rest of us, it's just economic reality.
WaPo: Credit scores are plunging for millions now that the Trump admin has resumed collection on defaulted student-loan payments.
— Alec MacGillis (@AlecMacGillis) May 26, 2025
Countless borrowers are suddenly being rejected for car and housing loans.
"This is the start of something big and we need to be paying attention." pic.twitter.com/gw7pdaurcQ
Millions of Americans are suddenly facing dramatically lower credit scores from delinquent student loans, making it tougher for them to secure housing, insurance, car loans, even employment at a vulnerable time for the U.S. economy.
Credit scores dipped by more than 100 points for 2.2 million delinquent student loan borrowers, and 150 points or more for more than 1 million in the first three months of 2025, according to an analysis by the Federal Reserve Bank of New York. It’s the kind of credit score drop that follows a personal bankruptcy filing. Roughly 2.4 million of those Americans previously had favorable credit scores and would have qualified for car loans, mortgages or credit cards before these delinquencies were reported, researchers said.
There's very little sympathy for these borrowers on X.
"Recent student loan delinquencies have helped drag down the average credit score for all Americans to 715 in February — the lowest level since early in the pandemic."
— Alec MacGillis (@AlecMacGillis) May 26, 2025
Recommended
Pay your debts.
What about the millions of Americans who cant pay back their CC debt? or car loans
— Jay Asliken 🕋☪️✈️ (@assliken) May 26, 2025
why arent they being turned into fake victims of their own making?
They'll get around to that eventually.
Give them time.
How many years did everyone have a holiday from paying?
— Smoke yer Joyful Cheap Fake (@Jlisa42067) May 26, 2025
Many got an extra $600 during covid on top of their pay and didn’t have to pay their loans.
Pay your d**n loans.
It's that simple.
Well yeah because now credit score are actually taking into account what those borrowers can afford. The credit scores aren’t inventing the outstanding debt. If you can’t afford your student loan debt, you can’t then ALSO afford a new car.
— Sunny (@sunnyright) May 26, 2025
Bingo.
They probably should have paid the principal while on the holiday.
— Bleu Cheque (@VERBAL_CHANCLA) May 26, 2025
It’s funny how the inability to pay your debts leads to a lower credit score.
That's how the real world works.
This is the system working correctly. Student loan debtors in default are bad credit risks for other loans and they’re being rejected for those loans.
— Chris (@chriswithans) May 26, 2025
I do not see a problem with this.
This is where this writer would like to remind you that one of the Senators who made it illegal to discharge student loan debt in bankruptcy was ... Joe Biden.
Some of these anecdotes don’t even make sense. Here’s a fully-grown 44-year-old presumably sentient adult who didn’t realize she had to start repaying her student debt again, and one of the things she, at 44, wants, is… to go back to school for a bachelor’s degree? pic.twitter.com/vVkmJ13CeR
— Amygator 🐊 *not an actual alligator (@AmyA1A) May 26, 2025
Make it make sense.
Hey, follow the bouncing ball here, Skippy:
— Problematic AF™🔥 (@EF517_V3) May 26, 2025
1. Biden said he didn't have the constitutional authority to do it
2. Then he went ahead and did it anyway to buy votes
3. The loans were never gonna be forgiven, but these morons believed the idiot dementia patient, so...
4. FAFO
Bingo.
Dont take on debit you cant pay back https://t.co/LRgnZgG6JU pic.twitter.com/qj6WvhjnsB
— Jay Asliken 🕋☪️✈️ (@assliken) May 26, 2025
A novel concept.
If you can't make a student loan payment, maybe you shouldn't be trying to buy new cars and new houses. https://t.co/1V91KQneZV
— Scot Bertram (@ScotBertram) May 26, 2025
Truth.
Who'd think that not repaying a loan would negatively affect your credit score? https://t.co/xIm82qs1ar
— Gen-X Wolf™ (@GenXWolf) May 26, 2025
Everyone except the Left.
Student loans were a mistake. Telling teenagers they HAD to go to college and take on 6 figures in debt at 17/18 was a huge mistake. The Biden policy of “canceling” the debt without a plan to reform the student loan racket is an enormous mistake. https://t.co/49q9pVkyzH
— Brittany (@bccover) May 26, 2025
The common theme here is: mistakes.
So if I understand this correctly, a bunch of people who are only getting by because they’re not making their student loan payments **are also trying to buy new cars and houses** ?? https://t.co/NiLlWGyLw5
— Arthur Boreman (yes, that Arthur Boreman) (@ArthurBoreman) May 26, 2025
Yep. That sums it up.