How do your student loans affect your credit score?

Woman sitting in front of her laptop at a coffee table at home studying a student loan bill — Even if your credit has suffered due to your student loans, there are ways to bounce back

(Image credit: fizkes / Getty Images)

Like any form of debt, student loans have the potential to affect your credit either positively or negatively. Many Americans have had the latter occur in recent months as student loan payments resume following a years-long pandemic-related pause.

In just the first three months of 2025, scores have dropped 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," said The Washington Post, citing analysis by the Federal Reserve Bank of New York. Notably, millions of those borrowers "previously had favorable credit scores," illustrating the very real effect that student loans can have on credit.

How can student loans impact your credit?

The main factor determining your credit score is your payment history. As such, "one of the biggest ways your student loans can affect your credit is whether or not you pay them on time," said SoFi. While consistently on-time payments can result in "positive shifts in your credit score over time," should you "fail to repay a loan or continually make late payments, your credit score will likely see a dip." Your score will drop even further if you default on your student loan, which occurs after 270 days of non-payment.

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There are other ways your student loans can move the needle on your credit score, though perhaps less significantly. For instance, when you take out private student loans, the lender will typically perform a hard credit inquiry, which "can cause your credit scores to temporarily drop," said credit bureau Experian. Additionally, you might see a slight boost in your score if your loans help with "diversifying your credit mix, or the different kinds of credit that appear on your credit report."

How long will it take your score to improve after a missed payment?

The good news: "Your score could improve sooner than you think," said the Post. Since "creditors are regularly sending information about how you handle your debts," responsible management, such as on-time payments, could soon have a positive impact.

The exception here is if your loans have become delinquent or gone into default. Those can "remain on your credit reports for up to seven years" and can make lenders "reluctant to offer you additional credit," said Experian.

What are ways to rebuild credit after student loan issues?

If your credit has suffered due to your student loans, the following steps can help it bounce back:

Focus on making payments on time and in full.
Aim to lower your total overall debt.
Talk to your lender to explore potential solutions.
Look into student loan consolidation or rehabilitation if your loans are in default.

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Becca Stanek has worked as an editor and writer in the personal finance space since 2017. She previously served as a deputy editor and later a managing editor overseeing investing and savings content at LendingTree and as an editor at the financial startup SmartAsset, where she focused on retirement- and financial-adviser-related content. Before that, Becca was a staff writer at The Week, primarily contributing to Speed Reads.