The end of the 'on-ramp' for student loan payments puts some borrowers at risk of delinquency.

• This week, the expiration of a measure aimed at assisting student loan borrowers with their payments put some borrowers at risk of falling behind on their payments.
• As of Sept. 30, missed payments can be reported to credit agencies.

Despite the expiration of the one-year grace period for student loan borrowers who miss a payment, millions of Americans are still unprepared to give up the safety net.

The 12-month "on ramp" to repayment aimed to provide borrowers with time to adjust their budgets and make student loan payments while avoiding damage to their credit score due to missed payments, as interest still accumulated on their balances.

Starting from September 30th, student loan servicers can report missed payments to credit bureaus, which may negatively impact your credit score, a crucial number used by lenders to assess your creditworthiness and the interest rates you'll be charged for credit cards, car loans, and mortgages.

A higher credit score typically makes it easier to obtain a loan.

Some borrowers may struggle to maintain their financial obligations, according to recent research.

Some borrowers haven't made payments in years

Since March 2020, federal student loan borrowers were allowed to pause their loan payments as part of the Covid economic response, with interest rates on most federal loans set to zero. Now, it has been approximately one year since student loan payments resumed.

A recent report by the National Endowment for Financial Education found that 47% of borrowers have made at least some payments since the end of the payment pause, while 26% said they made no payments at all. The nonprofit polled 813 adults with student loan debt in August.

"According to NEFE president and CEO Billy Hensley, who is also a member of the CNBC Global Financial Wellness Advisory Board, cutting $500 to $1,000 from the monthly budget is a substantial reduction that many people struggle to make ends meet. This change will have a significant impact on individuals' financial well-being and may cause stress and anxiety around the kitchen table."

Intuit Credit Karma's report revealed that 20% of student loan borrowers have not made any payments since the pause ended, with 69% of those who haven't been paying on time stating they won't be able to cover the interest they've accumulated.

Nearly 2,000 adults with outstanding student loan debt surveyed by Credit Karma in August are now worried their credit score will be negatively impacted due to their student loan payment history being reported to credit bureaus.

Consequences could be 'catastrophic'

According to Ted Jenkin, CEO and founder of oXYGen Financial in Atlanta, if you fail to make payments on a federal student loan for 4½ years, it becomes clear that you have no intention of paying.

Jenkin, a member of CNBC's Financial Advisor Council, stated that many people believe someone will save them and he thinks it will result in a negative outcome for many individuals.

According to Sallie Mae's annual "How America Pays for College" report, 48% of student loan borrowers anticipate debt forgiveness in the future. Of those who expect forgiveness, 37% plan to work in public service, while 7% say their future employer will pay for their loans. The biggest share, 47%, think the government will forgive student loans.

Missed payments could now result in a catastrophic impact on borrowers' credit scores, according to Jenkin.

How a missed payment can hurt your credit score

According to Liz Pagel, senior vice president of consumer lending at TransUnion, student loan delinquencies will appear on your credit report after 90 days of being past due.

If a consumer fails to pay their October bill and does not make the payment in November or December, they will be reported as 90 days past due in January, which will negatively affect their credit score.

Nearly 60% of student loan borrowers made payments recently, according to TransUnion data.

"Pagel stated that not making payments does not automatically mean that consumers cannot afford to pay, as some may have made a deliberate decision to delay payments in anticipation of loan forgiveness or because they knew their credit would not be negatively impacted."

Biden's student debt forgiveness plan is still on hold due to a federal judge's decision. The cost of attending some colleges has skyrocketed, with tuition fees now reaching almost $100,000 per year. Here are the top 10 highest-paying college majors.

After a four-year break, reintroducing those payments into budgets may necessitate some compromises.

According to the NEFE report, about three-quarters of student loan borrowers had to make budgetary adjustments to make their payments in the past year.

To avoid affecting your credit rating, it is necessary to create a budget and determine how you will include student loan payments within it, according to Andrew Housser, co-founder and co-CEO of personal finance website Achieve.

Housser emphasized the importance of exploring debt consolidation options and lowering interest rates whenever possible.

According to NEFE, 31% of those with outstanding loans said they are less likely to pursue additional education after the end of the repayment pause.

A separate study conducted by EdAssist by Bright Horizons also emphasized the influence of student loan debt on borrowers.

More education has been prevented by 53% of U.S. workers due to the fear of incurring additional debt.

According to Bright Horizons' fourth annual education index, which surveyed over 2,000 employed adults in May, 86% of workers with education debt felt that their degree was not worth the toll that student loans have had on them.

Students should be advised by consumer advocates not to borrow more than they anticipate earning as their initial salary.

""We need to improve higher education's efforts in helping people understand the potential earnings from a degree, as stated by NEFE's Hensley. It is crucial to discuss the process of launching a career and the plan that follows," said Hensley."