In February of 2025, Forbes reported that many student loan borrowers from all across the country are seeing sudden drops in their credit score. In some cases, credit scores are falling 100 or even 200 points. That is a number that can make a dramatic difference for consumers. The issue is that pandemic-era protections for student loan borrowers—including a temporary reprieve from delinquent loans being reported—are fading away. During this time, it is crucial that borrowers know their rights under the Fair Credit Reporting Act (FCRA). Here, our credit report error lawyer provides an overview of key points that student loan borrowers should know about their rights under the FCRA.
Lenders Must Provide Accurate and Timely Information
The FCRA requires that lenders, loan servicers, and third party debt collectors report credit information accurately. Unfortunately, some student loan servicers have struggled with the transition out of the pandemic-era repayment pause. There have been far too many errors on credit reports. If your credit score has dropped significantly due to a supposed delinquency that you believe is incorrect, it is important to act quickly. The first step is to contact your loan servicer to request clarification and, if necessary, a correction. If the servicer does not respond appropriately, you have the right to file a formal complaint.
You Have the Right to Dispute Inaccurate Information on Your Credit Report
One of the most important protections under the Fair Credit Reporting Act (FCRA) is your right to dispute inaccurate or unfair information on your credit report. If you believe your student loan servicer or credit bureau has reported incorrect details—such as a missed payment that you actually made or an account that does not belong to you—you can take action. Borrowers should request a free copy of their credit report from each of the three major credit bureaus (Equifax, Experian, and TransUnion) through AnnualCreditReport.com. If an error is found, the FCRA allows you to file a dispute with the credit bureau and the entity that reported the information. They are legally required to investigate your claim within 30 days and correct any inaccurate information.
You Have the Right to Take Legal Action if Your Credit Rights Are Violated
If a credit bureau or student loan servicer fails to comply with the FCRA, you have the right to seek legal remedies. Along with other things, this includes the ability to recover damages for financial harm caused by an incorrect credit report. For instance, if a misreported delinquency leads to a denied mortgage application, a higher interest rate on a loan, or any other tangible financial harm, you may be entitled to compensation.
Contact Our FCRA Attorney for a Confidential Consultation
At The Kim Law Firm, LLC, our credit report error lawyer has the knowledge and legal experience that you can trust. If you are a student loan borrower with questions about your rights under the FCRA, please do not hesitate to contact us today for a fully confidential consultation. We provide solutions-focused advocacy to clients.
