Student Loan Forgiveness: Can Student Loans Affect Credit Score?
Written by Reananda Hidayat PermonoCompleted Master of Science - MS, Petroleum Geology from Curtin University, Perth, Australia.
Republican lawmakers and conservative groups brought at least six lawsuits against President Biden’s student loan forgiveness program.
They argued the program is illegal since it bypasses Congress.
Meanwhile, the Biden administration is using the HEROES Act that allows them to modify student loan payments under the national emergency due to Covid-19.
Here are some FAQs about the student loan forgiveness plan that you should know.
Can student loans be forgiven after age 65? Unfortunately, the Education Department doesn’t erase student loans when borrowers turn 65 years.
The government expects you to keep paying your loans until they’re paid in full, or you die.
Do mortgage lenders look at student loans? Your mortgage lenders will assess your monthly payment obligations, including student loans.
Can student loans affect credit scores? Your student loan is similar to a mortgage or car loan.
Therefore, it can impact your payment history and credit score.
Are student loan garnishments still on hold? Federal student loan payments and activities are on hold until June 30, 2023.
The government implements this policy as the Supreme Court prepares a final decision on the student loan forgiveness program.
Is IRS garnishing student loans? Beginning from March 2023, tax refunds could be withheld if your student loans are in default.