Credit scores decline for millions as U.S. student loan collections restart


By Xia Lin

NEW YORK, June 16 (Xinhua) -- Millions of Americans are seeing their credit scores suffer now that the U.S. government has resumed referring missed student loan payments for debt collection, reported The Associated Press on Monday.

After 90 days of non-payment, student loan servicers report delinquent, or past-due, accounts to major credit bureaus, which use the information to recalculate the borrower's score. Falling behind on loan payments therefore can affect an individual's credit rating as severely as filing for personal bankruptcy.

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