Student Loan Delinquencies Are Back on Credit Reports: What You Need to Know

If you have federal student loans, there’s an important update that could affect your credit — especially if you’re planning to apply for a loan or other financing soon.

Delinquent Student Loans Are Being Reported Again

During the COVID-19 pandemic, the U.S. Department of Education paused collections and stopped reporting delinquent federal student loans to credit bureaus. This provided temporary relief to millions of borrowers and was extended multiple times — originally scheduled to end in September 2024.

Now, as of May 2025, that pause has officially ended. The Department of Education has resumed collections on defaulted student loans and has restarted reporting delinquencies to credit bureaus, according to TransUnion.

If you’re more than 90 days late on a federal student loan payment, it could now appear on your credit report and lower your credit score.

Why This Matters

The return to repayment has been confusing for many. Between changes in loan servicers, evolving federal policies, and expectations of loan forgiveness, it’s no surprise that some borrowers aren’t sure where they stand.

Unfortunately, most of the proposed widespread loan forgiveness plans did not move forward, and the long forbearance period is now over. Many borrowers may realize that:

• Their loans have already re-entered repayment status.
• Their accounts may be considered delinquent.
• Their credit score could be affected — right now.

What You Can Do Today

To protect your credit and stay on track with your financial goals, we recommend taking the following steps:

• Contact your loan servicer to confirm your current repayment status
• Check if your loan was transferred to a new servicer and update your contact/payment info accordingly
• Resume payments immediately if you’re no longer in a deferment or forbearance period
• Visit StudentAid.gov to access your federal loan details and servicer information

If you’re applying for a loan with us and your credit report shows student loan delinquency, you’ll need to resolve the issue with your servicer before we can re-run your credit. Taking early action can prevent delays and improve your credit outlook.

We’re Here to Help

At TEG Federal Credit Union, we know that navigating student loan repayment can be stressful. If you have questions about your credit report, your student loan status, or how this change could impact your ability to borrow, we’re here to support you.

Reach out to our team — we’re committed to helping our members stay informed, proactive, and financially empowered.

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