Financial pressure is pushing more Americans into delinquency, according to a new TransUnion report—especially student loan borrowers, many of whom are struggling after federal pandemic-era relief ended.
In its latest analysis, the consumer credit reporting agency found that student-loan delinquencies among rental applicants jumped sharply in early 2025. The share of applicants who were 90 days or more past due rose from 15% in January to 32% in May.
“Consumers across all tiers experienced notable score declines,” TransUnion wrote, adding that more than 2.2 million borrowers saw their credit scores drop by more than 100 points within a few months.
Why It Matters
TransUnion says the return of student-loan payments—after years of pandemic-era pauses and relief—has forced millions of borrowers to resume monthly obligations, driving a wave of missed payments that is now “reshaping the rental market and creating new challenges for property managers who rely on credit-based scoring to assess risk.”
The report also points to a broader rise in delinquencies and defaults across many types of consumer credit—an unusual pattern that some experts view as a caution sign for lenders and the wider economy.
What to Know
TransUnion reported that roughly one in three borrowers are now 90 days or more past due on student loans, while about one in five have stopped making payments entirely.
Separately, an August report from the Education Data Initiative estimated that about 42.5 million student borrowers hold federal loan debt, with nearly $1.7 trillion outstanding.
Before collections on defaulted loans resumed in May, the U.S. Department of Education estimated that more than 5 million borrowers had gone over a year without making a monthly payment—placing them in default—and that another 4 million were in late-stage delinquency.
TransUnion also found that the credit fallout is pushing many renters into riskier lending tiers. The report noted that “Even consumers who previously maintained high scores aren’t immune to the ripple effects of student loan stress.”
- Among Super Prime borrowers (781–850), 51% dropped to Prime (661–720) and 45% fell to Near Prime (601–660).
- Among Prime Plus borrowers (721–780), 34% moved down to Prime and 58% to Near Prime.
- Within the Prime group, 59% dropped to Near Prime and 23% fell into Sub Prime (600 or under).
- Among Near Prime borrowers, 63% slipped into Sub Prime.
What People Are Saying
In its “Trapped by Tuition” report, TransUnion wrote: “These shifts mean [a property manager’s] applicant pool is changing fast. Renters who looked financially solid six months ago may now trigger alarms in your screening system.”
Maitri Johnson, executive vice president of TransUnion’s tenant and employment screening business, said the surge of applicants struggling with student-loan payments could put pressure on rental operators: “Applicants who once met screening thresholds are now falling short.”
What Happens Next
TransUnion warned that rising financial stress can also increase the risk of fraud, noting that “renters under pressure may falsify documents or misrepresent income.”
“Student loan stress is reshaping the rental landscape, and traditional screening methods simply can’t keep up,” Johnson said. “With delinquencies doubling and credit tiers slipping, property managers must evolve their strategies.”
