What is the impact of a student loan deferral on my credit score?

When you make a late payment on your credit card bill, it’s not as bad as if you had not paid. However, a late payment can still affect your credit score indirectly.

Your payment history is one of the essential factors in your credit score, so even one late payment can cause your score to drop. In addition, a late payment can also lead to higher interest rates and fees if you’re already carrying a balance on your card.

No, a loan forgiveness correction does not affect your credit score. Even so, in a few instances, your credit score may improve if you refrain from taking it. Read on to see how it operates.


Student loan deferments don’t typically appear on your credit score because the lender approves them. Delinquent loans and defaults can damage a credit score, so having deferrals until that happens isn’t highly recommended.

A deferral does not significantly affect your credit score because it only takes place with your lender’s approval. Student loan deferrals can lengthen the length of the accumulated debt period, which may decrease your credit score. Not having a loan deferral until your account has been delinquent or in default can also lower your credit score.

How Does Deferring Student Loans Affect My Credit?

A federal student loan deferral or deferment allows you to postpone making the monthly principal, interest payments, or both on your loan until you no longer need this financial assistance. You can request a deferment from your lending institution in various ways, including if your disability prevents you from working temporarily or if it’s a period in which you’re expecting to take parental leave.

Borrowers undergoing cancer treatment can postpone their loan payments in accordance with their therapy regimens and for as long as they experience a healing period.

Your credit score indicates if you require payment or not meeting your financial obligations. Usually, defaulting on a loan is due to a lack of revenue. Still, it can occasionally happen if your lender has agreed to defer loans. Similarly, you’d respect your lender’s request to break your obligation to pay your loan. Even when you are not contacting your creditor alone, you need to honor the terms of the agreement.

Bottom Line

Loan deferrals will not get your credit card score any higher, but they won’t help. Whatever the case, applying for postponement occasionally may not be the ideal manner to handle your debt. If you’re considering taking this course, consider options like remortgaging or residency-based repayment plans.