If Biden forgives student loans, will it hurt my credit report?

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Q. If President Biden forgives some student loans, will there be negative implications for credit ratings?
— Borrower

A. We still don’t know if the Biden Administration will forgive some student loans or if Congress will take any action.

But yours is a smart question.

Generally, forgiven student loan debt would not show up as outstanding on a credit report, said Karra Kingston, a bankruptcy attorney in Union City.

“Therefore, there would likely be no changes to the credit report since student loans, as of now, are not factored into your credit rating unless you are late on your payments,” Kingston said.

In fact, getting student loan debt wiped out would likely help increase a credit score because your debt-to-income ratio would be smaller, she said.

“However, if you have a history of making late payments, those late payments would still show up on your credit report for seven years so that may still have an impact on your credit score,” Kingston said.

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This story was originally published on June 20, 2022.

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