This study analyzes a micro data set on delinquent student loans to identify factors influencing the likelihood of credit recovery. These factors include borrowers’ demographics, original loan characteristics, features of the credit recovery program and educational background. Using a proportional hazards methodology, our comprehensive analysis reveals that the success of student loan credit recovery is primarily influenced by job opportunities, educational pathways and effective debt relief measures. Older borrowers and those with longer delinquency periods are more likely to achieve credit recovery. Borrowers with educational backgrounds that align with current job market demands are more successful in credit recovery. Importantly, debt relief programs significantly lower the credit recovery failure rate and boost the success rate, while strategies that merely extend repayment periods or reduce monthly payments have a limited impact. Based on these insights, we recommend extended repayment terms and debt relief incentives to improve student loan credit recovery rates. This approach not only safeguards young borrowers from early credit defaults but also underscores the social value of the financial sector.