When the US government started collecting student loan payments again, many Americans saw their credit scores go down. If people miss payments for 90 days, the companies that manage student loans tell credit reporting agencies. This can really hurt their credit score, similar to what happens when someone declares bankruptcy. Because of this, it can be harder or more expensive to get things like car loans, home loans, and credit cards. The Federal Reserve Bank of New York said that in early 2025, more than 3 million people with student loans had their scores drop a lot. The US Department of Education stopped federal student loan payments in March 2020 because of the pandemic. They started collecting them again in 2023, with a one-year period where rules were not as strict. However, the Trump administration began collecting unpaid student loans again in late 2024.