Credit Score Tanked After Missing a Student Loan Payment? Here’s How to Fix It Fast

If you’ve fallen behind on your student loans, you’re definitely not alone—and it’s not the end of the road for your credit. With payments restarting after a long pause, thousands of borrowers are struggling to catch up. Some are already seeing their credit scores drop by 100 points or more.

But here’s the good news: you can recover. Even if your score has taken a hit, there are real, doable steps you can take to get back on track—starting today.

Let’s break it down in simple terms.

First, What Happens When You Miss a Payment?

Missing just one payment may not seem like a big deal—but for your credit score, it can have a pretty big impact.

• A payment that’s 30 days late could lower your score by 50 to 80 points.

• At 90 days, the lender can report it to the credit bureaus, which causes even more damage.

• At 270 days (about 9 months), your loan can go into default, and that default sticks to your credit report for up to seven years.

Right now, the government is warning that millions of borrowers could default this year—but the good news is, you still have time to avoid that.

How to Rebuild Your Credit After a Missed Student Loan Payment

1. Don’t Wait—Make a Payment Now

Even if you’re behind, making a payment today can help stop things from getting worse. It might not fix everything right away, but it shows you’re taking responsibility—and that matters.

If money’s tight, just pay the minimum due. Anything is better than letting the balance sit unpaid.

2. Set Up Auto-Pay to Avoid More Misses

This might feel like a small step, but it makes a big difference. Once you enroll in automatic payments, your future payments will be made on time—no more late fees or dings to your credit.

Some loan servicers even give you a small interest rate discount just for using auto-pay.

3. Call Your Loan Servicer—It’s Worth It

It might feel awkward, but calling your loan servicer can make a huge difference. If this is your first late payment, you can ask for something called a “goodwill adjustment.” That’s where they agree to remove the late payment from your credit report.

They don’t have to say yes—but many do, especially if you’ve been a reliable payer before.

This is also your chance to ask about better payment options, like:

• Income-driven repayment plans (which adjust your payments based on what you earn)

• Forbearance or deferment if you’re temporarily unable to pay

4. Check Your Credit Report

Mistakes happen more often than you might think. Get a free copy of your credit report from all three major credit bureaus at AnnualCreditReport.com.

Look for:

• Payments marked late that were actually on time

• Loans you don’t recognize

• Incorrect balances or dates

If you see an error, file a dispute. Fixing even one mistake could help your score rebound quickly.

5. Pay Down Credit Cards if You Can

Even if your student loans are behind, you can still give your credit score a boost by lowering your credit card balances.

Try to keep your balances below 30% of your credit limit—or even lower if possible. This is one of the quickest ways to show lenders that you’re in control of your finances.

6. If You’re in Default, Consider Rehabilitation or Consolidation

If your loan has already gone into default, don’t panic—there’s still a path forward.

• Rehabilitation: You agree to make nine on-time payments in 10 months. Once you do, the default status can be removed from your credit report.

• Consolidation: You combine your defaulted loan with other loans into one new loan. This gives you access to new repayment plans and helps stop collection activity.

Both are effective. Rehabilitation is better for your credit report, but consolidation is faster.

7. Be Patient—Credit Recovery Takes Time

Once the damage is done, rebuilding takes a little time. Most people see their scores start to rise within a few months of consistent, on-time payments.

Keep monitoring your progress and try not to get discouraged. It won’t happen overnight—but it will happen.

One More Tip: Use a Free Credit Monitoring Tool

Apps like Credit Karma, CreditWise, or NerdWallet let you:

• Track your score

• Spot changes as they happen

• Get helpful insights on what’s helping or hurting your credit

They’re free and won’t hurt your score.

Missed student loan payments can feel overwhelming—but they don’t have to define your financial future.

Whether you’ve fallen behind by a month or several, there’s a way forward. With some smart steps, a little discipline, and patience, you can bounce back—and rebuild stronger than before.

And if you want help writing a dispute letter, choosing a repayment plan, or just figuring out where to start, I’ve got you. Just ask.