Student loans are considered an installment loan similar to an auto loan, personal loan, or mortgage. These installment loans are reported to your credit score regarding your payment history, length of credit history, and credit mix (use of credit services). These all play a role in adding or detracting from your score.

Under the Fresh Start Program, borrowers whose federal student loans were delinquent or in default prior to the pandemic will be returned to a “Current” status when the payment pause ends. The delinquencies and defaults will be removed from their credit history.

With the Fresh Start initiative, defaulted student loan borrowers are restored of their borrowing status and can remove delinquent payments on their credit. Chipper helps manage the process for the user being removed from federal student loan delinquency as well wiping away accompanying late/missed payments.

Your payment history and and the amount borrowed can play a role in determining your credit score. Being late or missing payments on your student loans are the most common causes for student loans negatively impacting one's credit score.

Yes, the ability to pay off existing debts will benefit your credit score over time. Lowering your debt-to-income (DTI) ratio is often the largest obstacle for borrowers to be approved for large purchases such as a house or automobile. Paying off student loan debt is the first step!