Why Student Loan Forgiveness Could Hurt Your Credit Score
By:
Sarah Hansen
Money; Getty Images
After months of suspense, it's finally official: The Biden Administration will forgive up to $20,000 in federal student loan debt for eligible borrowers.
Some 43 million Americans will be impacted by the plan, the Education Department estimates, including roughly 20 million borrowers who will see the entire balance of their loans disappear.
While this is obviously great news for borrowers, changes to their student loans could also mean a change — quite possibly a temporary decrease — to their credit scores.
The impact is likely to be minor for most people, but it will depend on the individual situation. Here's everything you need to know.
