"The impact of the government shutdown on student loan payments and the importance of timely payments to avoid credit score consequences is staggering, especially for individuals planning to buy a home. Despite the shutdown, student loan payments remain due, and any delay can have lasting effects on credit scores. Additionally, the U.S. Department of Education is notifying some borrowers about potential debt forgiveness under Income-Driven Repayment plans."
"Student loan payments are still required during the government shutdown to avoid negative credit score repercussions, impacting future financial decisions like home buying. A missed student loan payment can have a long-lasting impact on credit scores, with repercussions lasting up to seven years, affecting loan approval and interest rates. Timely payments are crucial for improving credit scores, but the effects may take a year or more to become noticeable, highlighting the importance of consistent payment behavior."
Student loan payments remain due during a government shutdown, and missed or delayed payments can cause lasting damage to credit scores. A single missed payment can affect credit for up to seven years, which can raise mortgage interest rates or limit loan approval. Timely and consistent payments are necessary to improve credit, though measurable improvements may take a year or longer. Mortgage lenders often expect at least 12 months of clean payment history to offer the best rates. The U.S. Department of Education is notifying some borrowers about Income-Driven Repayment forgiveness for those who meet payment and eligibility criteria.
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