As student loan delinquency rises, average US credit scores slip
Micah Abigail CEO, founder and financial influencer Micah Smith talks with Fox News Digital about the crippling finances and how to fix it.
Average US credit scores slid across the country, mainly due to reopening Federal Student Loans Delinquent reports on credit reports of US consumers, according to FICO.
The scoring agency reported that the national average US FICO score, which is used as a benchmark to assess consumer credit risk, fell to 715, down one point from January and two points from April 2024.
FICO scores ranging from 300 to 850 vary based on updates in borrower behavior tracked by three major consumer reporting agencies: Equifax, Transunion and Experian. These scores are used by banks and lenders to see who they can lend their money.
FICO scores fluctuate based on updates in borrower behaviors tracked by three major consumer reporting agencies: Equifax, Transunion and Experian. (istock / istock)
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FICO regularly publishes national average scores and provides important insights into consumer credit status.
According to FICO, federal student loan delinquency was reported again in credit files as of February 2025. An emergency several-year suspension on interest and payments on federal student loans under the CARES Act and a one-year “on-ramp” grace period have been made to federal borrowers a one-year “ramp-on” grace period. Student loan payments.
The share of consumers with more than 90 days of delinquency in the past six months has increased from 7.4% in January to 8.3% in February. This is the first time this number has surpassed pre-pandemic levels. According to FICO, it was 8.1% in January 2020.
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In a blog post Wednesday, FICO’s senior director of analysis and scores, Tommy Lee reported delinquency on freshman loans reported as of February 2025, but still not reported to approximately 5.4 million additional consumers, despite having not made student loan payments since October 2024.
College students celebrate at graduation. (istock / istock)
These borrowers also have the risk of their credit score being affected if they fail to make a payment, and new 90-day student loan delinquency has been reported in their credit files. According to Lee, this could lead to a greater decline in average FICO scores over the coming months.
In comparison, approximately 12.4 million borrowers have made at least one student loan payment since October 2024 and are in a good position to maintain or improve their credit scores.
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FICO also reported that some consumers also saw modest improvements in credit usage. That metric represents 30% of the FICO score.
According to FICO, the average Credit card usage has decreased It will be from January to February due to seasonal reductions in credit card balances after holidays. According to the scoring agency, this helped partially offset the decline in scores.