Borrowers with Multiple Defaults Are Less Likely to Improve
Their Credit Score

Change in credit score relative to first year of default after two, four, and six years, by default pattern

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Notes: Long-term default is defined as being in default continuously for at least three years. To have multiple defaults, a borrower must appear to have held student loans in each year between defaults. A credit score change is classified as a "small or moderate increase" if it changes by 90 points or fewer. It is a "large increase" if it increases by more than 90 points. We chose the 90 point threshold because we find that is approximately the increase required for the typical borrower in these groups to reach the “fair” credit score range.

Borrowers with Multiple Defaults Are Less Likely to Improve Their Credit Score

Borrowers with Multiple Defaults Are Less Likely to Improve
Their Credit Score