Credit Student Loan Scofflaws 4 Naiveté

Almost as if we needed proof that a college degree does NOT make one a genius, we’re told the nation’s credit bureaus are downgrading, sometimes steeply, the credit scores of those graduates not paying their tuition loans.

The WSJ article was almost glib in noting that since the “Pandemic-era relief on federal student loans has ended … borrowers are [now] feeling the pain” by way of “steep drops in their credit scores.” At least, that is happening to the roughly “43% of those who owe payments [but] haven’t resumed making them.” That translates into 9 MILLION being now at risk of a credit score hit. It might be recalled that the pandemic-era relief on federal student loans ended last October, and that started the 90-day grace period folks had to start making payments before their credit scores would be negatively impacted. Times up. Pain starts.

Partly blame Joe Biden for constantly pretending he could ignore the Supreme Court’s clearly worded ruling against his unilateral student debt plans during the last presidential campaign. But, then, a smart grad should have seen through an empty promise by a pol. Besides the debt load issue, the WSJ predicts the problems of those in the 43% bracket will have a “ripple effect,” for instance, by making it harder to get a home loan mortgage or a new car loan; lower credit scores can also lower-credit card rates and spending limits.

Davd Soul