1. United States
2. N.J.
3. Letter

The recent revelation that average FICO scores have dropped due to student loan borrowers falling into severe delinquency is concerning. With federal student loan delinquencies now being reported on credit files again after a pandemic-era pause, it is estimated that over 5 million additional severe delinquencies could be reported between March and April alone. This will undoubtedly have a significant negative impact on the credit scores and financial well-being of millions of Americans. It is crucial that we take action to support student loan borrowers and prevent this crisis from further escalating. One potential solution could be to extend the pause on reporting delinquencies to credit bureaus, providing borrowers with more time to get back on their feet financially. Additionally, we should explore options for loan forgiveness or income-driven repayment plans to make these debts more manageable. The exploitative nature of the student loan industry and the burden it places on individuals must be addressed. We cannot continue prioritizing profits over people's well-being. I urge you to take decisive action to tackle this issue and ensure that student loan borrowers are not unfairly punished for circumstances often beyond their control.