Student Loan Surprise? Why It Could Be a Big Deal for Homebuyers Right Now

Let’s talk about something that’s been flying under the radar lately—but is now crashing into real life like a toddler with a juice box: student loan forbearance.

Remember when federal student loans were on pause during the pandemic? It was a much-needed breather for millions of folks trying to keep their heads above water. But that break officially ended last fall (October 2024), and for a lot of people, the return to repayment wasn’t exactly shouted from the rooftops.

In fact, it was more like a whisper… followed by a surprise drop in credit score.

What’s Happening Now?

Starting in October 2025, student loan companies began reporting missed payments again. And guess what? If someone hasn’t been checking their loan status, they might already be 90+ days late—without even realizing it.

Yikes. That’s because there was a 12-month “on-ramp” grace period (from Oct 2024–Sept 2025) where missed payments weren’t reported to credit bureaus. But once that ended? It was game on.

And the consequences are serious—credit scores can drop by 100–200 points in these situations. Yes, really. Even if you’re in school, in deferment, or thought you were safe.

What Does This Mean for Buying a Home?

Here’s the heartbreaker: even folks who are financially stable and ready to buy a home could be blindsided. Imagine getting pre-approved one month, then suddenly being told you don’t qualify anymore… all because of a student loan you didn’t realize was reporting as delinquent.

I’ve seen firsthand how this can throw a wrench into someone’s homebuying journey. Especially for families who’ve worked hard, budgeted carefully, and were finally ready to make their move. It’s frustrating—and avoidable.

What You Should Do Right Now:

Whether you have student loans yourself or know someone who does, here’s how to stay ahead of the curve:

1. Check Your Loan Status: Log into your loan servicer’s website or head to StudentAid.gov to see where things stand. Are you current? Behind? Enrolled in a repayment plan?

2. Pull Your Credit Report: Head over to AnnualCreditReport.com (it’s free!) and check for any new dings or surprises. Better to find out now than during the mortgage process.

3. Explore Repayment Options: If payments feel unmanageable, look into income-driven repayment plans or loan consolidation. There are tools to help—don’t be afraid to ask for them.

4. Talk to Your Lender Early: If you’re planning to buy a home soon, be upfront with your mortgage advisor about your student loans. They’ll help you navigate how your debt affects your loan approval.

Final Thoughts

Look, life gets busy. Between work, kids, carpools, and (if you’re like me) occasionally leaving your coffee in the microwave for three hours… it’s easy to miss something like a student loan status update.

But with credit scores playing such a huge role in the homebuying process, now is the time to take a quick peek under the hood and make sure everything’s in good shape.

Need help understanding how your credit or student loans might affect your homebuying journey? I’ve got your back. Let’s chat and make a plan that works for your life and your future.

📞 Let’s schedule a quick call to talk through your goals, credit questions, or just get a game plan in place.

📧 Prefer email? No problem—shoot me a message anytime!

Just connect with me here:

Tiffanie Danley

503-453-6580

Tiffanie@tdrealtygroup.com