The Biden administration has yet to make a final decision about whether to cancel student debt for nearly 40 million Americans.
More than 79% of those with student debt — a total of 30 million people — saw their credit scores improve during the pandemic, according to a this week from the Federal Reserve Bank of New York. Nearly 8 million borrowers boosted their scores enough to jump to a higher credit tier.
"In general, student debt is weighing down the financial well-being of many households and inhibiting them from creditworthiness and all that it entails," Steinbaum added.Your credit score, which indicates to a lender how likely you are to make or miss a debt payment, is calculated largely based on your payment history. Other factors, like how much you owe on car loans and credit cards and the length of your credit history, also affect your score.
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