Millions of Americans are experiencing a decrease in their credit scores because the US government has resumed collecting student loan payments. If payments are missed for 90 days, student loan companies report these overdue accounts to credit bureaus, which can significantly damage credit ratings, similar to declaring bankruptcy. This makes it more difficult or expensive to obtain car loans, mortgages, or credit cards. The Federal Reserve Bank of New York reported that in the first quarter of 2025, over three million student loan borrowers experienced a notable drop in their scores. The US Department of Education paused federal student loan payments in March 2020 due to the pandemic, and payments restarted in 2023 with a one-year grace period. However, the Trump administration began collecting outstanding student loans again in late 2024.