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The Department of Education doesn't publish those figures, but ASA estimates that just 40percentt of borrowers are actually making on time payments.
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In addition to avoiding late-payment fees, making on-time payments is one of the most important factors in determining your credit score.
Also, people with federal student loans would no longer receive the incentive bonuses that some now get for making on-time payments.
He called the plan "appropriately tailored to reach homeowners who have demonstrated their commitment to making on-time payments, even during times of financial distress".
The new credit section considers how many new accounts you have, what types of accounts they are and whether or not you're making on-time payments to the accounts.
And in September, it was revealed that of the almost 30,000 people who applied to have their debt wiped after making on-time payments for a decade and devoting their early careers to helping others, only 96 people had received what was promised under President George W. Bush.
Some lenders offer lower rates to those who make on-time payments or who sign up for electronic debit payments linked to their checking account.
If the borrower fails to make on-time payments, the cosigner's credit score could take the same big hit.
Creating a system that'll help you make on-time payments and make a habit of only using a small portion of your available credit are good starts.
35% of your credit is based upon your payment history; basically if you make on-time payments to who you owe.
However, refinancing your student loans often results in lower monthly payments, which makes it easier to make on-time payments, the most heavily weighted factor in determining a FICO score.
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CEO of Professional Science Editing for Scientists @ prosciediting.com