Markus Andrews

Watch Daily: Monday – Friday, 3 PM ET

Tom Lee has been appointed chairman of the board of directors of bitcoin miner BitMine Immersion Technologies, effective Monday.
BitMine announced a $250 million private placement to implement a buying strategy around ether, which it aims to make its primary treasury reserve asset.
Lee’s appointment comes amid a groundswell of interest from traditional financial institutions around stablecoins, many of which run on the Ethereum network.

Adam Jeffery | CNBC

Fundstrat’s Tom Lee is joining a little known bitcoin miner aiming to become the biggest publicly traded holder of ether.
Lee, a high-profile market strategist known for his prescient bitcoin price forecasts and stock predictions, has been appointed chairman of the board of directors of BitMine Immersion Technologies, effective Monday. The company also announced a $250 million private placement to implement a buying strategy around ether, which it aims to make its primary treasury reserve asset while continuing with its core bitcoin mining business.

Lee’s appointment comes amid a groundswell of interest around stablecoins following the successful IPO of stablecoin issuer Circle at the beginning of the month and positive momentum pushing potential stablecoin legislation through Congress.
“Stablecoins have proven to be the ‘ChatGPT’ of crypto, leading to rapid adoption by consumers, merchants and financial services providers,” Lee said in a statement. “Ethereum is the blockchain where the majority of stablecoin payments are transacted … and thus, ETH should benefit from this growth.”
The company will monitor the value of ether held per company share as a key performance metric going forward, Lee added, similar to MicroStrategy’s bitcoin-per-share metric “BTC Yield.” BitMine can increase the value of ETH held per share “by a combination of reinvestment of the company’s cash flows, capital markets activities, and by the change in value of ETH,” according to Lee.
Companies are increasingly looking past bitcoin for crypto treasury management strategies. BitMine joins the publicly listed betting platform SharpLink Gaming, which initiated an ether treasury strategy in May and appointed Ethereum co-founder Joseph Lubin as chairman of its board of directors. DeFi Development is focused on a similar strategy for the Solana token.
Ahead of this transaction, Bitmine Immersion had a very tiny market value of just $26 million with lightly traded shares that were down 45% on the year.

Don’t miss these cryptocurrency insights from CNBC Pro: More

A sign sits in front of a McDonald’s restaurant on May 13, 2025 in Chicago, Illinois.
Scott Olson | Getty Images

The S&P 500 rose to a fresh record on Friday, but macro uncertainties persist. Investors may want to consider dividend-paying stocks as a way to enhance returns in the event of choppy markets.
Tracking the stock picks of top Wall Street analysts can help investors select attractive dividend stocks, given that these experts assign their ratings after an in-depth analysis of a company’s fundamentals and its ability to generate solid cash flows to consistently pay dividends.

Here are three dividend-paying stocks, highlighted by Wall Street’s top pros, as tracked by TipRanks, a platform that ranks analysts based on their past performance.

McDonald’s

Fast-food chain McDonald’s (MCD) is this week’s first dividend pick. The company offers a quarterly dividend of $1.77 per share. With an annualized dividend of $7.08 per share, MCD stock offers a dividend yield of 2.4%. It is worth noting that McDonald’s has increased its annual dividend for 49 consecutive years and is on track to becoming a dividend king.
Recently, Jefferies analyst Andy Barish reiterated a buy rating on McDonald’s stock with a price target of $360. The analyst believes that MCD stock is a buy on a pullback. Meanwhile, TipRanks’ AI analyst has an “outperform” rating on McDonald’s stock and a price target of $342.
Barish sees near-term acceleration in McDonald’s U.S. same-store sales (SSS) and medium-term acceleration in unit growth as the major drivers for the stock, which would help narrow the current valuation gap compared to rivals Yum Brands and Domino’s. The analyst also noted improved international SSS, as the company remains a trade-down beneficiary due to its value proposition and low-price point combos.
Among other positives, Barish mentioned brand power and competitive advantages in size, scale, advertising, supply chain and most up-to-date chain of restaurants. He is also optimistic about MCD due to its defensive qualities and brand positioning during uncertain times, higher visibility in delivering low-single to mid-single digit SSS compared to rivals, acceleration of global unit growth to 4% to 5%, category-high operating margins and massive free cash flow generation to support dividends and repurchases.

“Despite a soft 1Q and well-known pressures on the low-end consumer, MCD is executing well by balancing value, innovation, and marketing,” said Barish.
Barish ranks No. 591 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 57% of the time, delivering an average return of 9.9%. See McDonald’s Ownership Structure on TipRanks.

EPR Properties

We move on to EPR Properties (EPR), a real estate investment trust (REIT) that is focused on experiential properties such as movie theaters, amusement parks, eat-and-play centers and ski resorts. EPR recently announced a 3.5% increase in its monthly dividend to $0.295 per share. At an annualized dividend of $3.54 per share, EPR stock offers a dividend yield of 6.2%.
Following an extensive visit to EPR’s corporate headquarters and meetings with some teams in the company, Stifel analyst Simon Yarmak upgraded EPR stock to buy from hold and increased the price target to $65 from $52. TipRanks’ AI analyst also has an “outperform” rating on EPR with a price target of $61.
Yarmak turned bullish on EPR, noting the recent rise in the stock and improvements in the cost of capital. He said that the company can “once again return to reasonable external growth.”
Specifically, the analyst estimates that year to date, EPR’s weighted average cost of capital (WACC) has improved to about 7.85% from nearly 9.3%. At these improved levels, Yarmak said that he thinks the company can start aggressively making more acquisitions and boost external growth.
Moreover, Yarmak highlighted the continued improvement in the fundamentals of the theatre industry and expects percentage rent to enhance EPR Properties’ earnings over the next several years. Meanwhile, the improved cost of capital is enabling management to look at other external growth opportunities, mainly golf assets and health and wellness assets.
Yarmak ranks No. 670 among more than 9,600 analysts tracked by TipRanks. His ratings have been profitable 58% of the time, delivering an average return of 8.2%. See EPR Properties Stock Charts on TipRanks.

Halliburton

The third stock on this week’s dividend list is Halliburton (HAL), an oilfield services company that provides products and services to the energy industry. HAL offers a quarterly dividend of 17 cents per share. At an annualized dividend of 68 cents per share, Halliburton stock’s dividend yield stands at 3.3%.
Following a virtual investor meeting with management, Goldman Sachs analyst Neil Mehta reaffirmed a buy rating on Halliburton stock with a price target of $24. Also, TipRanks’ AI analyst has an “outperform” rating on HAL stock with a price target of $23.
While management acknowledged near-term risks to the North American business, Mehta noted that about 60% of HAL’s revenue comes from international markets and presents a relative degree of resilience, which is not priced into the stock. Halliburton expects continued softness in certain geographic locations such as Mexico, Saudi Arabia and Iraq. However, most of HAL’s international rigs are exposed to unconventional drilling, and management does not expect these rigs to experience large suspensions.
Interestingly, management expects “idiosyncratic growth” from four key areas: unconventional completion opportunities in Argentina and Saudi Arabia, market share growth in directional drilling, intervention opportunities as operators are more likely to spend greater time optimizing existing assets than developing greenfield assets, and artificial lift opportunities. Mehta expects these opportunities to enhance margins and support strong free cash flow conversion, making HAL stock attractive at these levels.
Despite the expected softness in pricing in North America, Halliburton expects to maintain a premium to the market due to its differentiated Zeus technology and the long-term nature of its electric contracts, noted the analyst.
Mehta ranks No. 541 among more than 9,600 analysts tracked by TipRanks. His ratings have been successful 60% of the time, delivering an average return of 9.2%. See Halliburton Technical Analysis on TipRanks. More

About 38% of survey respondents said they took on a second job to pay their debts, according to a report by Zety, a resume templates site.
Most, or 37%, owe less than $10,000, the site found. About 20% owe up to $25,000 while 10% owe up to $100,000.
While taking on a second job for more income may sound like a solution, consider other steps before you do, experts say.

Svetikd | E+ | Getty Images

Many Americans are carrying debt — and for some, the liability is influencing their career choices and job hunting behaviors.
“Debt is a growing force behind why people take certain jobs, stay in roles longer than they’d like, or hesitate to make a career pivot,” said Priya Rathod, a career trends expert at Indeed, a job posting site.

About 38% of survey respondents said they took on a second job to pay their debts, according to a new report by Zety, a resume templates site. A similar share, 37%, said they accepted jobs outside their industry or positions they weren’t interested in just to repay their outstanding balances.
About 37% owe less than $10,000, the site found. However, about 20% owe up to $25,000 while for 10%, the balance is as high as $100,000.
What types of debt survey respondents have varies. Most, or 71%, said to have credit card debt, per Zety data, while 37% have mortgage debt, 30% have an auto loan and 23% have student loans, among other kinds of debt.
The survey polled 1,005 U.S. employees on April 12.
More from Personal Finance:Student loan borrowers face ‘default cliff’ as late payments climbHow the GOP budget bill targets immigrant financesFEMA is not a ‘replacement for insurance coverage,’ expert says

The data shows that surveyed workers may not be earning enough to meet their financial obligations, and in some cases, fund their aspirations, according to Jasmine Escalera, a career expert at Zety. 
If it weren’t for their debt, 17% of respondents said they would start a business, go back to school or freelance, per the report.
“Their financial status is impacting not just them in terms of their work and their 9-to-5, but also those life goals,” Escalera said.

Second jobs ‘driven by necessity’

When workers begin to search for side hustle or second job, it’s often because their wages are not keeping up with their cost of living or financial obligations, experts say. 
About 52% of polled workers said they have a side hustle in order to make ends meet, according to Indeed data provided to CNBC. In mid-May, the site polled 1,256 U.S. adults who are employed full time or part time, or seeking employment. 

The decision to take on a second job may also come out of fear for the state of the economy, Rathod said. 
About 46% of respondents said they’re concerned about being laid off in the next year, so they want to make sure they are able to protect themselves by working side jobs, Indeed found. 
“It’s driven by necessity,” said Rathod.
But picking up extra work can come with trade-offs, such as feeling burnout or stress, she said.

Growing your income is ‘a long-term strategy’

While taking on a second job for more income may sound like a viable solution to pay down debt, consider asking for a raise or seeking a promotion in your current job first, experts say. If that doesn’t work, there are other steps to consider, like pivoting to a higher-paying role or new industry.
“People really need to understand that working more hours is a short-term solution, and growing your main income is a long-term strategy,” Rathod said.
If you’re noticing that wage growth is slowing down in your company or industry, it may be difficult to get a raise, said Rathod. Instead, negotiate for parts of your total compensation, such as the flexibility to work hybrid or remote, more stock options, wellness benefits or a stipend for continuing education.

Otherwise, consider applying to a new role that pays more, whether internally or in a new company, or switching to a different industry that has better growth prospects, Rathod said. For example, someone who works in sales could apply those skills in a variety of fields, like health care, which is growing.
In May, nearly half of the job growth came from health care, which added 62,000 jobs, according to the Bureau of Labor Statistics.
Think about how your skills can transfer to roles in a new sector, or find ways you can “upskill” — to expand your existing abilities, per LinkedIn — to get your foot in the door, Rathod said.
If you still believe that you need an additional source of income rather than a new role, think about the skills that you already have and what you’re good at, experts say. 
Also make sure that the additional hours do not interfere with your primary source of income and other areas of your life, Escalera said. More

Watch Daily: Monday – Friday, 3 PM ET

Coinbase is on track for its best month since November and third straight monthly gain — its first three-month rally since late 2023.
The surge this month comes as investor attention shifts away from Coinbase’s core business, trading, to stablecoins and other ways crypto can provide utility.
Even with a 43% gain in June, shares have further to run if the market remains bullish on Circle Internet Group, according to Citizens.

People watch as the logo for Coinbase, the biggest U.S. cryptocurrency exchange, is displayed on the Nasdaq MarketSite jumbotron at Times Square in New York on April 14, 2021.
Shannon Stapleton | Reuters

Coinbase is the top performer in the S&P 500 in June, boosted by positive regulatory updates, product launches and, of course, its very inclusion in the benchmark stock index at the end of May.
The crypto exchange’s outperformance in the S&P 500 extends back to the April 8 market low, just after President Donald Trump’s initial sweeping tariffs announcement sent stocks sinking.

Coinbase is now on pace for its best month since November, third straight monthly gain — 43% in June alone — and its first three-month rally since the end of 2023. On Thursday, the stock hit its highest level since the day of its initial public offering in 2021.
“The S&P 500 inclusion, the Senate’s passage of the GENIUS Act and very strong performance of Circle negated the false narratives for Coinbase and people are waking up,” Oppenheimer analyst Owen Lau told CNBC.
Restraints lifted
“The two things holding Coinbase back were the issues of fee compression — it hasn’t happened and in fact, Coinbase has been generating positive earnings consistently, which is why they were included in the S&P 500 — and regulatory uncertainty,” he said. “Many people don’t believe there will be any consensus coming out of Congress … the fact is we’re seeing the passage of the GENIUS Act.”
The GENIUS Act establishes the first federal framework for dollar-pegged stablecoins, granting sweeping authority to the Department of Treasury and opening the door to banks, fintechs, and retailers.
Even with Coinbase’s 44% run this month, the stock has room to appreciate further, according to Devin Ryan, head of financial technology research at Citizens. He said the market isn’t fully connecting the dots around Coinbase’s close relationship with Circle Internet Group. Circle debuted on the New York Stock Exchange June 5 and has soared more than 500% since.

According to a revenue share agreement, Coinbase keeps 100% of the revenue generated on all USDC held on Coinbase, plus nearly 50% of all other USDC revenues, “which is 99% of Circle’s current revenue,” Ryan said.
USDC is the stablecoin issued by Circle. Stablecoins are a subset of cryptocurrencies pegged to the value of real-world assets. About 99% of all stablecoins are tethered to the price of the U.S. dollar.

Another way to play
“Yet, Coinbase doesn’t incur any of the operating costs borne by Circle,” Ryan said. “If the market is right on the current bullish view for Circle, Coinbase is another way to play that — and with the financial connection described, it would seem there’s a lot more value left in Coinbase.”
Coinbase, whose core business is crypto trading, has been expanding its suite of crypto services over the past several quarters to include areas like custody, staking, wallet services and stablecoins.
This month, the company beefed up its subscription plan by offering it with its first crypto-backed credit card in partnership with American Express. It also introduced a partnership with Shopify and debuted a stablecoin payments service for e-commerce. JPMorgan also partnered with the crypto company to launch its own version of a stablecoin, which it’s calling a “deposit token” on Coinbase’s in-house built blockchain, Base.
“There’s clearly a sentiment trade occurring in crypto as institutional investors are looking at the space, many for the first time, and want to express a positive view on crypto evolving from a speculative asset class to one of utility — with legislative clarity as the key catalyst — and Coinbase is the most direct way to invest in that thesis,” Ryan said.
Volume concern
If there’s one concern, it’s in trading volume, said Oppenheimer’s Lau. The average daily volume of crypto transactions on the Coinbase platform has been trending lower since April, which could be a risk for the company and other crypto trading providers heading into the second half of the year.
The analyst is optimistic the regulatory outlook can turn that around though, specifically if the industry gets market structure legislation on top of stablecoin legislation.
“If the GENIUS Act brought us to ‘stablecoin summer’ then I believe that the eventual passage of the CLARITY Act can bring us into altcoin summer,” Lau said. “So at the end of this year, I do see another catalyst that can reverse this trend because there will be animal spirits, people will be buying altcoins like crazy if we get past the market structure bill.”

Don’t miss these cryptocurrency insights from CNBC Pro: More

Some Medicaid cuts proposed in Republicans’ “big beautiful” bill have been rejected by the Senate parliamentarian for inclusion in the legislation.
Yet other parts of the proposed Medicaid cuts — including new work requirements of 80 hours per month and more frequent redetermination evaluations every six months — were not questioned by the Senate referee.
The Senate bill is “deeply harmful” to the program, regardless of whether the provisions identified by the parliamentarian stay in or out, said Allison Orris, senior fellow and director of Medicaid policy at the Center on Budget and Policy Priorities.

An inflated pig with the message “Medicaid Is Not A Piggy Bank For Billionaires” is stationed at a rally opposing House Republicans Tax Proposal prior to the final House Vote on Capitol Hill on May 21, 2025 in Washington, D.C.
Jemal Countess | Getty Images Entertainment | Getty Images

While some Medicaid cuts proposed in Republicans’ One Big Beautiful Bill Act were rejected by the Senate parliamentarian on Thursday, other reforms to the program that could affect individuals’ access to coverage were left untouched.
The Senate parliamentarian rejected proposed changes aimed at capping states’ provider taxes, which are used to help fund states’ Medicaid expenditures. The Senate provision reduces the safe harbor limit in expansion states and puts a moratorium on any new provider taxes in all states.

Yet other parts of the proposed Medicaid cuts — including new work requirements of 80 hours per month and more frequent redetermination evaluations every six months — made it past the Senate referee.
“The Senate bill, like the House bill, includes deep cuts to Medicaid and other health programs, and is deeply harmful, whether or not these provisions stay in or out,” said Allison Orris, senior fellow and director of Medicaid policy at the Center on Budget and Policy Priorities.
More from Personal Finance:’Big beautiful’ bill proposes new federal Medicaid work requirementsHealth-care cuts in GOP budget bill prompt medical debt: ReportSenate version of ‘big beautiful’ bill includes $6,000 senior bonus
The House version of the One Big Beautiful Bill Act would reduce federal Medicaid spending by almost $800 billion, according to estimates from the Congressional Budget Office.
Republican lawmakers are pushing to pass the bill through budget reconciliation, an expedited legislative process that requires a simple majority vote. This week, the Senate parliamentarian evaluated whether the proposal complies with the Byrd rule, which prohibits the inclusion of changes that are extraneous to the budget.

While the Senate parliamentarian’s decisions mean certain provisions cannot stay in as written, that leaves room for lawmakers to change the language of the proposal or make other adjustments.

How Medicaid provider taxes may affect coverage

Medicaid provider taxes offer a way for states to raise money for the non-federal share of funding toward the program, Orris said. If states are limited on how they can do that, the federal government will spend less on Medicaid, she said.
The CBO scores a reduction in provider taxes as a Medicaid cut, Orris said, because it is assumed states will not be able to replace that revenue.

In response to restrictions on provider taxes, states could make decisions that would result in people losing Medicaid coverage, Orris said. Based on the House version of the bill, the CBO has estimated around 400,000 people could lose Medicaid coverage based on the proposed changes to provider taxes, she said.
Some Republican lawmakers have expressed concerns that the changes to the provider taxes would hurt rural hospitals financially and prompt them to reduce services or close.
In addition to Medicaid provider taxes, the Senate parliamentarian also rejected proposals to make certain immigrants who are not citizens ineligible for Medicaid coverage.
About 7.8 million people may lose Medicaid coverage based on both the House version of the “big beautiful” bill and Affordable Care Act changes including expiring subsidies and rule changes proposed by the Trump administration, according to Washington, D.C.-based think tank Third Way.
In a recent report, Third Way found the budget bill may increase medical debt by $50 billion — a 15% rise over today’s $340 billion in unpaid debts. More

Investors have been snapping up shares of Generac amid the heat wave and start of hurricane season.
The company is on track for its sixth straight day of gains and best week since November 2024.
Shares are up nearly 12% this week.

A worker inspects a 24-kilowatt Generac home generator at Captain Electric in Orem, Utah, on Feb. 18, 2021.
George Frey | Getty Images News | Getty Images

With hurricane season underway and an oppressive heat wave rolling across parts of the nation, investors have been snapping up shares of Generac.
The backup generator maker is on track for its sixth straight day of gains and best week since November 2024. It is up nearly 12% this week.

High temperatures blanketed areas through the central and eastern U.S. starting last weekend, resulting in reported power outages in states such as New York, New Jersey and Illinois. Extreme heat warnings and advisories are still in effect for parts of the Mid-Atlantic, Ohio Valley and Southeast, affecting 130 million people, the National Weather Service said.
On top of that, this Atlantic hurricane season is expected to be above normal, according to the National Oceanic and Atmospheric Administration. The agency expects 13 to 19 total named storms, with six to 10 expected to become hurricanes. Of those, three to five are anticipated to be “major hurricanes,” which are categories 3, 4 or 5.
This week, tropical storm Andrea became the first of the season, albeit briefly, according to AccuWeather. It quickly returned to a tropical rainstorm when winds subsided, the weather service said.
The heat and storms are putting strain on the U.S.’ already stressed and aging power grid — and it is expected to get worse. The risk of power outages caused by hurricanes could jump 50% or more in some parts of the nation due to climate change, which could affect future storm characteristics, according to research from the Pacific Northwest National Laboratory and the Electric Power Research Institute last year.
Generac CEO Aaron Jagdfeld addressed the issue in October with CNBC’s Jim Cramer. The severe weather, plus the new crop of data centers, is putting a strain on the system, he said.

“This has become a massively critical discussion point,” Jagdfeld said on “Mad Money.” “This is only going to get worse.”
Bank of America is forecasting electrical load growing at a 2.5% compound annual growth rate over 2024 through 2035.
Other names to watch include Trane Technologies, which makes cooling systems for residences and businesses, including data centers. The stock currently has an average rating of hold by the analysts that cover it, according to FactSet.
Utility stocks are also expected to benefit from the increase in power demand. Bank of America said it expects “significant” tailwinds in the second half for the power sector, with data center deals helping improve margins for names such as Constellation Energy and Vistra.
Still, with the utilities sector outperforming the S&P 500 this year, the bank is being selective.
“Versus that sector outperformance we would prefer laggards that have catalysts to drive outperformance in the second half,” analyst Ross Fowler wrote.
His preferred opportunities include Sempra, NorthWestern Energy and Alliant Energy.
— CNBC’s Adrian van Hauwermeiren contributed reporting. More

As the U.S. Department of Education ramps up collection efforts on past-due federal student loans, a default wave is coming, new reports show.
Of the 5.8 million newly delinquent borrowers, nearly one-third could reach default status in July, according to TransUnion.
Student loan borrowers who are behind on their payments are also seeing their credit scores tumble.

With the U.S. Department of Education’s “involuntary collections” on federal student loans now underway, millions of borrowers face a “default cliff,” reports show.
A new analysis by TransUnion found that as of April, 31% of student loan borrowers with a payment due are in “late-stage delinquency,” or over 90 days past due on payments. That’s the highest share the credit bureau has ever recorded.

As borrowers face repayment challenges — including questions about their loans and loan servicers as well as confusion over the current status of some income-driven repayment plans — more risk falling into delinquency and eventually defaulting, according to Joshua Trumbull, senior vice president and head of consumer lending at TransUnion.
“We don’t think this represents the ceiling,” Trumbull said. “Defaults will continue to tick higher.”
More from Personal Finance:3 student loan changes in GOP billTrump administration restarts student loan collectionsWhat loan forgiveness opportunities remain under Trump
Of the 5.8 million delinquent borrowers, nearly one-third, or roughly 1.8 million, could reach default status in July, according to TransUnion. An additional 1 million are estimated to reach default status in August, followed by 2 million more in September.
A borrower enters default status, and is subject to collection actions by the Education Department, once payments are 270 days past due.

A recent study by the Pew Research Center also found an impending “default cliff” or “a coming wave of further student loan defaults — which put borrower financial stability and taxpayer investments at risk.”
“This default wave is expected to begin this fall,” said Brian Denton, an officer on the student loans team at Pew.

Defaulted borrowers at risk of wage garnishment

Student loan collections efforts had largely been on pause since the pandemic began in March 2020, but Trump administration officials have said that taxpayers shouldn’t be on the hook when people don’t repay their education debt.
The move to restart collection activity began last month. “Borrowers who don’t make payments on time will see their credit scores go down, and in some cases their wages automatically garnished,” U.S. Secretary of Education Linda McMahon wrote in a Wall Street Journal op-ed in April.
Wage garnishment could start as soon as June for some borrowers, but those in default will receive a 30-day notice before a portion of their paycheck is withheld, a spokesperson for the Education Department previously told CNBC.

Credit scores sink for past-due borrowers

Meanwhile, consumers who have fallen behind on payments in recent months have seen their credit scores fall by 60 points, on average, TransUnion also found. For super prime borrowers — or those with credit scores above 780 — who were seriously delinquent, scores sank as much as 175 points. Credit scores typically range between 300 and 850.
“Consumers may find themselves shocked by the dramatic and immediate impact that a default can have on their credit scores,” Trumbull said.

The credit score implications are worse for borrowers with better scores, research shows. 
Because borrowers in less-risky credit tiers typically have fewer dings on their credit, any derogatory mark “has the potential to have a significant and jarring impact,” according to TransUnion. In general, the higher your credit score, the better off you are when it comes to getting a loan. 
The Federal Reserve Bank of New York also cautioned in a March report that student loan borrowers who are late on their payments could see their credit scores sink by as much as 171 points. 

Initially, those past-due borrowers benefited from the pandemic-era forbearance on federal student loans, which marked all delinquent loans as current. Median credit scores for student loan borrowers rose by 11 points between the end of 2019 to the end of 2020, the Fed researchers found. However, that relief period officially ended on Sept. 30, 2024.
“We expect to see more than nine million student loan borrowers face substantial declines in credit standing over the first quarter of 2025,” the Fed researchers wrote in a blog post. In May, the New York Fed reported that among borrowers with a payment due, nearly 1 in 4, or 24%, were behind on their student loans in the first quarter.

“Although some of these borrowers may be able to cure their delinquencies,” the Fed researchers said, “the damage to their credit standing will have already been done and will remain on their credit reports for seven years.”
Lower credit scores could result in reduced credit limits, higher interest rates for new loans and overall lower credit access, the researchers also said.
Both VantageScore and FICO reported a drop in average scores starting in February as early- and late-stage credit delinquencies rose sharply, driven by the resumption of student loan reporting. Borrowers who are late on their payments could see their credit scores tank by as much as 129 points, VantageScore reported at the time.

Don’t miss these insights from CNBC PRO More