When Do Student Loans Get Reported to Credit Bureaus?

Student loans are reported to credit bureaus from the moment they are disbursed and continue to be reported throughout the life of the loan until they are fully paid off. Typically, your lender or loan servicer reports your loan status to the credit bureaus every month.

We will explore how reported student loans affect your credit. We’ll also discuss how long it takes for your credit score to rebound after reporting negative items and what to do if you can’t pay your student loans.

When are student loans reported to credit bureaus?

Student loans are reported to the consumer credit bureaus throughout the life of the loan, starting when they’re disbursed and culminating when they’re paid in full. You can expect your lender or loan servicer to report your student loan status to the credit bureaus monthly until you’ve paid them off.

Private lenders aren’t required to report loan data to all credit bureaus (aka credit reporting companies) and may report to only one or a few of these entities. The big three national consumer credit bureaus are Equifax, Experian, and Transunion. 

The assigned loan servicer for your federal student loans will report information about your student loans to four consumer credit bureaus, which include the big three and Innovis. 

It’s also important to keep in mind that the information reported to the credit bureaus will change depending on the stage of your student loan, as summarized below:

• In-school and grace period: When you’re attending school at least half-time or after you leave school and are in your six-month grace period, the status of your loan, any payment history, and the loan balance are reported.
• Repayment period: Once you enter the repayment phase of your loan and expect to begin making payments, more details will be reported, such as whether your loan is current or past due (and how many days), payment details, and forbearance status.
• Close accounts: After your loan is repaid in full and closed, your lender or loan servicer will report it to the credit bureaus a final time. The report will include information about how it was repaid (e.g., paid in full, consolidated, transferred, or defaulted). 

Actions that might be reported to the credit bureaus and the potential impact on your credit score are summarized in the following table: 

Action	When it’s reported	Credit impact
Disbursement	The month after it happens	None
On-time payments	Monthly	Positive
Missed payments	Monthly	Negative
Current account status	Each month a payment is less than 90 days past due	None
Delinquent account status	The month after payments are 90 days past due	Negative
Default status	The month after payments are 270 days past due	Negative

How reported student loans affect your credit

Student loans can play a significant role in building your credit history and score. From the moment your loan is disbursed to when it’s paid off, every action is tracked and reported to the credit bureaus. 

These reports can have an impact on your credit score, which ultimately depends on how you manage your loan. Understanding how these loans affect your credit can help you choose actions that will lead to a healthy credit score.

When your loan is disbursed

When your student loan is disbursed, it is reported to the credit bureaus. This initial action typically has a neutral effect on your credit score. The disbursement indicates that you have added new debt, increasing your credit obligations. 

However, because no payments are due at this stage, you’ll see no immediate negative or positive implications for your credit score.

When you make on-time payments

Making on-time payments is essential to maintaining and improving your credit score. One of the best ways you can work to improve your credit score is to ensure you always make your payments on time. On-time payments show your reliability as a borrower. 

Consistent on-time payments help your credit score, showing lenders that you can manage debt responsibly. Over time, this can lead to a higher credit score and better borrowing terms in the future.

When you miss payments

Missing payments on your student loan can harm your credit score. Each missed student loan payment is reported to the credit bureaus and damages your credit score. 

Even one missed payment can result in a reduction in your credit score. If you miss several payments, it can lead to a significant decrease. Therefore, avoiding missed payments is essential to maintain a healthy credit profile.

When you are 90 days delinquent

If your student loan payment is 90 days past due, the loan is typically reported as a current account until the end of the month. After this 90-day period has elapsed, the status is updated to delinquent. 

Being 90 days delinquent harms your credit score, signaling to lenders that you’re struggling to make your payments. This status remains on your credit report and can make securing future loans or credit more challenging.

When you default

Defaulting on your student loan is one of the most severe negative items on your credit report. For federal student loans, this status is generally triggered the month after your loan is 270 days past due. Many private lenders choose to handle this reporting differently.

A default lowers your credit score and remains on your credit report for up to seven years. This status can affect your ability to get new credit, rent an apartment, or even get a job. 

It’s crucial to avoid default by seeking assistance if you’re struggling to make payments.

How long does it take for your credit score to rebound?

In most cases, negative items remain on your credit report for seven years, though this can vary. Even so, you may be able to get your credit score to rebound faster (in a few months or years) with consistent positive action, such as resolving delinquencies and making on-time payments.

Rebuilding your credit score after a negative student loan event involves engaging in consistent positive financial behavior. Here are essential steps to help:

1. Make on-time payments: The most effective way to improve your credit score is to pay all your bills, including your student loans, on time. Payment history is a major part of credit scoring models, and on-time payments demonstrate reliability.
2. Participate in the temporary Fresh Start program: This program offers a way to bring defaulted loans back into good standing for federal student loans. After making several on-time payments, it allows you to regain access to federal student aid and remove the default status from your credit report.
3. Consider loan consolidation: Consolidating several federal student loans can simplify your payments and get you out of default. While the default will still be reported to the credit bureaus, you can build a positive history by making on-time payments. 
4. Reduce your overall debt: Keeping your credit card balances low relative to your credit limits (credit utilization ratio) helps improve your overall credit score. Even if you have negative items related to your student loans, positive actions such as these can help your score rebound.
5. Review your credit report: Take time to check your credit report for any problems and dispute any potential errors or inaccuracies with the credit bureaus. Correcting mistakes can have an immediate positive effect on your credit score.

By maintaining good financial habits and understanding the impact of negative student loan information, you can work toward building a better credit score. Consistent positive actions will help you rebound from negative marks and achieve a healthier credit profile.

What to do if you can’t pay your student loans

If you can’t pay your student loans, the best action you can take is to speak with your lender or student loan servicer about your options. Depending on what’s causing the issues, you might be able to get assistance without missing a payment or having your loan go into default. 

Our expert’s advice

Erin Kinkade

CFP®

I always remind borrowers to communicate with their lender or any entity they owe a debt to and never ignore the issue. Sometimes, the lender can work with you or even note the account that a phone call was made and when you will begin making payments or need to start a payment plan. If you feel overwhelmed and don’t know what to do next, I recommend engaging a financial counselor. If they charge a fee, they typically establish a payment plan you can manage. For those looking for financial counseling, I recommend hiring an Accredited Financial Counselor (AFC).

Private student loan lenders may be somewhat limited in the relief they can and are willing to provide. However, many debt relief options are available for federal student loans, including deferment, forbearance, and income-driven repayment plans.

Loan deferment and forbearance allow you to pause payments, while income-driven repayment plans adjust your monthly loan payments based on your household income and family size.

If you’re worried about missing a payment or have already missed one, take action now to avoid negative consequences. Here’s what you can do:

• Contact your loan servicer: Inform your loan servicer about your situation as soon as possible. It can guide you through the available options and help you avoid default.
• Explore your repayment options: Investigate income-driven repayment plans that could lower your monthly payments based on your current income.
• Evaluate student loan deferment or forbearance: If you qualify, these options can pause your payments, giving you time to improve your financial situation without damaging your credit.

Taking these types of proactive steps can help you manage your student loans and prevent avoidable negative items from being reported to credit bureaus.