Me? Take out a student loan? Pshh, your college should be paying *me* to attend. 💅 My positive vibes and A+ aura are worth more than Harvard’s endowment. #justsayin 💋
They may have turned on the student loan payment machine again, but that doesn’t mean Americans are paying. ❌ In fact, we’re now seeing crazy delinquency rates and it’s hitting everyone right smack in the FICO fanny.
Here’s Five Fast Facts on student loans and credit scores:
- 🔢 Settle the Score - Today, the average FICO score (AKA your credit score) sits at 715. That’s down one point from January and two points from last year. A big reason? The number of student loan delinquencies over 90 days is on the rise. We saw a 12% increase between January and February alone.
- 📈 Here’s the Deal - Why the staggering rise in student loan delinquencies? Well for one, they just started reporting them on credit reports again for the first time since the pandemic started. Payments resumed back at the end of 2023, but they weren’t reflected in credit reporting again until this past February.
- 🏄 Riding the Wave - In February, we saw the first wave of delinquencies make an impact. FICO officials estimate a whopping 2.7 million student loan borrowers had 90+ day delinquencies…and we’re just getting started. They estimate we could see over 5 million reported between March and April.
- 😎 Bouncing Back - If you’re delinquent on your student loans and your credit score’s trash, don’t panic. The good news is that once you start paying again, your score will recover over time. When you resume payment, you’ll reduce your overall debt load and get brownie points for paying on time - both FICO score boosters.
- 💳 Credit Score 101 - Need a little FICO refresher? Credit scores range from 300 to 850 and the higher the better. Lenders use the score to vet borrowers and those with the best credit scores get the best terms. Here’s what your score is made of: payment history (35%), amounts owed (30%), length of credit history (15%), new credit (10%) and credit mix (10%).
🔥Bottom line: While we’re reminiscing about good ol’ 2020, we can’t forget about the price of eggs. Do you know how much they’ve risen in cost since then? Spoiler alert: it’s far from egg-cellent. Check out this article for some pretty jaw-dropping price comparisons.
How’s your credit score these days?
Let us know by connecting with us on Facebook and Instagram! Also, remember to share this newsletter with your friends & coworkers!
Btw, If you’ve read this far and haven’t yet signed up for the weekly Paycheckology newsletter, CLICK HERE!
