The on-ramp period protected borrowers from negative credit impacts during payment pauses, but its end means delinquencies will now affect credit scores, risking eligibility for forgiveness programs.
As of January 2024, only 40% of borrowers were current on payments, highlighting potential reliance on the on-ramp and debt relief options provided by the federal government.
The end of the on-ramp on September 30 means missed payments will now affect credit scores. Borrowers should be aware that missed payments won't contribute toward forgiveness.
Analysts suggest a significant number of borrowers have not resumed payments, which could signify an ongoing dependence on government relief and the hope for loan forgiveness.
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