Student loans can either boost or hurt your credit score, depending on how they’re managed. On-time payments help build a strong payment history, which makes up 35% of your FICO score. Additionally, having a student loan improves credit mix and length, both of which contribute to a higher score.
Missing payments, however, can damage credit. Federal loans report delinquencies after 90 days, while private loans may do so after 30 days. Defaults, which occur after 270 days for federal loans, stay on credit reports for seven years, significantly lowering scores.
To protect credit, borrowers should explore options like income-driven repayment or deferment if struggling with payments. Managing student loans responsibly in 2025 can set the stage for better financial opportunities.
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