Millions of Americans are seeing their credit scores go down because the U.S. government has started collecting student loan payments again. If people don't pay for 90 days, student loan companies tell major credit reporting agencies, which can hurt credit scores as much as declaring bankruptcy. This can make it harder or more expensive to get car loans, home loans, credit cards, and other financial help. The Federal Reserve Bank of New York said that in the first three months of 2025, more than 3 million people with student loans saw their scores drop a lot. The U.S. Department of Education stopped federal student loan payments in March 2020 because of the pandemic, and they started again in 2023 after a one-year extra time period. However, the Trump administration began collecting unpaid student loans again in late 2024.