As Wage Garnishment Looms, Federal Student Loan Borrowers Indicate They Could Prioritize Their Student Loans Ahead of Credit Cards and Personal Loans
TransUnion (NYSE:TRU) released a survey revealing that federal student loan borrowers facing potential wage garnishment may prioritize student loan payments over credit cards and personal loans. The study shows that between December 2024 and June 2025, delinquency rates among student loan borrowers increased significantly, with credit cards seeing a 479% growth in delinquencies compared to more modest increases in secured debt like mortgages (+20%) and auto loans (+67%).
As of July 2025, 29% of federal student loan borrowers (5.4 million individuals) were reported as seriously delinquent (90+ days past due). Nearly half of delinquent borrowers cited affordability concerns, while one-third reported prioritizing other bills over student loans. The threat of involuntary collections could trigger an unprecedented shift in payment hierarchy, potentially moving student loans higher in payment priority.
TransUnion (NYSE:TRU) ha pubblicato un sondaggio che rivela come i mutuatari di prestiti studenteschi federali, di fronte a un possibile pignoramento dello stipendio, potrebbero dare priorità al rimborso dei prestiti studenteschi rispetto a carte di credito e prestiti personali. Lo studio mostra che tra dicembre 2024 e giugno 2025 i tassi di inadempienza tra i mutuatari di prestiti studi hanno aumentato significativamente, con le carte di credito che hanno registrato una crescita del 479% delle insolvenze rispetto ad aumenti meno marcati dei debiti garantiti come mutui (+20%) e prestiti auto (+67%).
Ad luglio 2025, il 29% dei mutuatari federali di prestiti studenteschi (5,4 milioni di individui) è stato segnalato come gravemente in ritardo (90+ giorni). Quasi la metà dei mutuatari in ritardo ha citato preoccupazioni di affordability, mentre un terzo ha riferito di dare priorità ad altre bollette rispetto ai prestiti studenteschi. La minaccia di riscossioni involontarie potrebbe innescare uno spostamento senza precedenti nella gerarchia dei pagamenti, potenzialmente spostando i prestiti studenteschi in alto nella priorità di pagamento.
TransUnion (NYSE:TRU) publicó una encuesta que revela que los prestatarios de préstamos estudiantiles federales que enfrentan posibles embargos de sueldo podrían priorizar los pagos de préstamos estudiantiles sobre las tarjetas de crédito y préstamos personales. El estudio muestra que entre diciembre de 2024 y junio de 2025, las tasas de morosidad entre los prestatarios de préstamos estudiantiles aumentaron de forma significativa, con las tarjetas de crédito registrando un crecimiento del 479% en morosidad en comparación con aumentos más modestos en deudas aseguradas como hipotecas (+20%) y préstamos para automóviles (+67%).
A julio de 2025, el 29% de los prestatarios federales de préstamos estudiantiles (5,4 millones) fueron reportados como gravemente morosos (90+ días de atraso). Casi la mitad de los prestatarios morosos citaron preocupaciones de asequibilidad, mientras que un tercio informó priorizar otras facturas sobre préstamos estudiantiles. La amenaza de cobranzas involuntarias podría provocar un cambio sin precedentes en la jerarquía de pagos, potencialmente elevando los préstamos estudiantiles en la prioridad de pagos.
TransUnion (NYSE:TRU)가 연방 학자금 대출 차주들이 임금 압류 위험에 직면했을 때 학자금 대출 상환을 신용카드 및 개인 대출보다 우선시할 수 있음을 보여주는 설문조사를 발표했습니다. 연구에 따르면 2024년 12월에서 2025년 6월 사이에 학자금 대출 차주의 연체율이 크게 증가했으며, 신용카드는 479%의 연체 증가를 보였고, 모기지(+20%), 자동차 대출(+67%)와 같은 담보부 채무는 더 온건하게 증가했습니다.
2025년 7월 기준 연방 학자금 대출 차주 중 29%가 심각한 연체(90일+ 경과)로 보고되었습니다. 연체 차주의 거의 절반은 감당 가능성에 대한 우려를 언급했고, 3분의 1은 학자금 대출보다 다른 청구서를 우선시했다고 보고했습니다. 강제 징수의 위협은 지불 우선순위의 전례 없는 변화를 촉발하여 학자금 대출의 지급 우선순위를 높일 수 있습니다.
TransUnion (NYSE:TRU) a publié une enquête révélant que les emprunteurs fédéraux de prêts étudiants susceptibles d’être saisis de leur salaire pourraient privilégier les paiements de prêts étudiants par rapport aux cartes de crédit et prêts personnels. L’étude montre que entre décembre 2024 et juin 2025, les taux de défaut parmi les emprunteurs de prêts étudiants ont fortement augmenté, les cartes de crédit enregistrant une croissance de 479% des défauts par rapport à des augmentations plus modestes de la dette garantie comme les hypothèques (+20%) et les prêts automobiles (+67%).
À partir de juillet 2025, 29% des emprunteurs fédéraux de prêts étudiants (5,4 millions de personnes) ont été signalés comme gravement délinquants (90 jours et plus de retard). Près de la moitié des emprunteurs en défaillance ont cité des préoccupations d’abordabilité, tandis qu’un tiers a déclaré privilégier d’autres factures par rapport aux prêts étudiants. La menace de collectes involontaires pourrait déclencher un changement sans précédent dans la hiérarchie des paiements, potentiellement élevant les prêts étudiants dans l’ordre de priorité des paiements.
TransUnion (NYSE:TRU) veröffentlichte eine Umfrage, die zeigt, dass bundesweite Studienkreditnehmer, die mit einer möglichen Lohnpfändung konfrontiert sind, Studienkredite gegenüber Kreditkarten und Privatkrediten priorisieren könnten. Die Studie zeigt, dass zwischen Dezember 2024 und Juni 2025 die Ausfallraten unter Studienkreditnehmern signifikant gestiegen sind, wobei Kreditkarten eine 479%-Zuwachs bei Ausfällen verzeichneten, verglichen mit moderateren Zuwächsen bei besicherten Schulden wie Hypotheken (+20%) und Autokrediten (+67%).
Ab Juli 2025 wurden 29% der bundesstaatlichen Studienkreditnehmer als ernsthaft delinquent (90+ Tage im Verzug) gemeldet. Fast die Hälfte der säumigen Schuldner nannte Erschwinglichkeitsbedenken, während ein Drittel berichtete, andere Rechnungen vor Studiendarlehen zu priorisieren. Die Drohung unbezahlter Inkasso könnte zu einer beispiellosen Verschiebung in der Zahlungsreihenfolge führen, wodurch Studiendarlehen möglicherweise höher priorisiert werden.
TransUnion (بورصة نيويورك:TRU) نشرت استطلاعاً يكشف أن المقترضين من قروض الطلاب الفدرالية الذين يواجهون احتمال الحجز من الأجور قد يعطون أولوية لسداد قروض الطلاب على بطاقات الائتمان والقروض الشخصية. توضح الدراسة أنه بين ديسمبر 2024 ويونيو 2025 ارتفعت معدلات التخلف بين المقترضين من قروض الطلاب بشكل ملحوظ، حيث سجلت بطاقات الائتمان زيادة قدرها 479% في التخلف مقارنة بزيادات أكثر اعتدالاً في ديون مضمونة مثل الرهن العقاري (+20%) وقروض السيارات (+67%).
حتى يوليو 2025، 29% من المقترضين الفدراليين للقروض الطلابية (حوالي 5.4 مليون شخص) كانوا مُبلغين عن تأخر شديد (90 يوماً فأكثر). أشار ما يقرب من نصف المقترضين المتخلفين إلى مخاوف قدرة الدفع، فيما ذكر ثلثهم أنهم يولون أولوية لفواتير أخرى على القروض الطلابية. قد تدفع تهديدات التحصيل القسري إلى تغيير غير مسبوق في ترتيب الدفع، مما قد يجعل القروض الطلابية في مرتبة أعلى من حيث الأولوية.
TransUnion (NYSE:TRU) 发布了一项调查，揭示面临潜在工资没收的联邦学生贷款借款人可能会将学生贷款还款置于信用卡和个人贷款之上。研究显示，在2024年12月至2025年6月之间，学生贷款借款人的逾期率显著上升，信用卡的逾期增长达到 479%，而抵押贷款（+20%）和汽车贷款（+67%）等有担保债务的增幅较小。
截至2025年7月，29%的联邦学生贷款借款人被报告为严重逾期（90天以上），近一半的逾期借款人表示担忧支付能力，三分之一的借款人表示优先支付其他账单而非学生贷款。强制催收的威胁可能引发支付优先顺序的前所未有的变化，可能使学生贷款在支付优先级中提高。
- None.
- 29% of federal student loan borrowers (5.4 million people) are seriously delinquent
- Credit card delinquencies among student loan borrowers grew 479%
- Personal loan delinquencies increased 186% among student loan borrowers
- Auto loan delinquencies rose 67% among student loan borrowers
Insights
TransUnion's data reveals serious shifts in payment priorities among delinquent student loan borrowers as collection enforcement looms.
TransUnion's latest survey exposes a significant shift in payment hierarchies among delinquent federal student loan borrowers facing potential wage garnishment. Traditionally, student loans rank lowest in payment priority, but the threat of involuntary collections is reshuffling this established order. The data reveals borrowers are now positioning student loans ahead of credit cards and personal loans while still prioritizing secured debts like mortgages and auto loans.
The numbers tell a compelling story about consumer financial stress. Among seriously delinquent student loan borrowers, credit card delinquencies skyrocketed by
The persistence of high student loan delinquency rates is particularly troubling. As of July 2025,
What's most concerning for lenders is the double squeeze affecting borrowers: resumed student loan payments combined with inflation's impact on everyday expenses. Nearly half of surveyed delinquent borrowers cited simple affordability concerns as their reason for missing payments, while a third reported prioritizing other bills. As these borrowers approach the 270-day default threshold, we may witness unprecedented disruption to traditional payment hierarchies that could ripple throughout consumer lending markets.
Results of new TransUnion survey show millions navigating tough choices as delinquencies remain high
CHICAGO, Sept. 25, 2025 (GLOBE NEWSWIRE) -- Millions of delinquent federal student loan borrowers are bracing for the possible resumption of involuntary collections by the U.S. Department of Education, such as wage garnishment or the withholding of tax refunds or Social Security benefits. A new survey from TransUnion (NYSE: TRU) highlights a growing concern related to this issue.
When asked about the prospect of prioritizing student loan payments with their existing credit accounts, federal student loan borrowers indicated they intend to pay their mortgage and auto loans first. However, in the face of involuntary collections, they prioritized their student loan payments ahead of credit cards and personal loans.
An early examination of delinquent federal student loan borrowers across the credit portfolio over the period from December 2024 to June 2025 supports this sentiment. While serious delinquency rose across each of these credit products among the delinquent student loan population, the rate of growth was generally aligned with the priorities reflected in the survey. Secured products, such as mortgages and auto showed a significantly lower increase in delinquencies than unsecured personal loans and credit cards.
Delinquency for Auto and Mortgage Among Seriously Delinquent Federal Student Loan Borrowers Increased at a Slower Rate Than Unsecured Personal Loans and Credit Cards
| Timeframe/Credit Product | Mortgage | Auto | Unsecured Personal Loans | Credit Card |
| Serious DQ Rate* Dec. 2024 | ||||
| Serious DQ Rate* June 2025 | ||||
| Growth Rate | + | + | + | + |
*Serious DQ is 60+ DPD for unsecured personal loans and auto, 90+ DPD for credit card and mortgage
Source: TransUnion US consumer credit database
It is worth noting that these delinquency figures noted in the table above only apply to the population of seriously delinquent student loan borrowers, which represents just over five million of the more than 200 million credit-active U.S. consumers.
“During the extended federal student loan payment pause, many borrowers took on additional credit—possibly to manage rising living costs or other financial obligations,” said Joshua Turnbull, senior vice president and head of consumer lending at TransUnion. “Now, with payments resuming, borrowers are facing a financial reckoning. Combined with the broader impact of elevated inflation and a higher cost of living, the threat of involuntary collections is causing a potential shake-up amidst the traditional payment hierarchy. Many are being forced to make difficult, short-term prioritization decisions as cash flows fail to meet spending and debt obligations.”
As part of the same TransUnion survey, nearly half of federal student loan borrowers currently missing payments indicated they were not making those payments simply because of affordability concerns. Another one-third responded that they were being forced to make the tough decision to prioritize other bills ahead of repaying their student loans. These challenging decisions are likely to persist for at least the short term, as the percentage of federal student loan borrowers reported as seriously delinquent has remained stubbornly high in recent months.
The most recently available data for July 2025 revealed that
“While the percentage of federal student loan borrowers who are seriously delinquent has slightly subsided in recent months, it continues to remain decidedly elevated,” said Michele Raneri, vice president and head of U.S. research and consulting at TransUnion. “We’re closely monitoring this population as they approach default status at 270 days past due, which could trigger involuntary collections. Once these actions begin, we anticipate that we may see an unprecedented shift in payment hierarchy where student loans are no longer at the bottom.”
Lenders seeking to stay fully abreast of the true risk of the federal student loan borrowers in their portfolios can leverage TruVision Premium Student Loan Attributes as part of their regular portfolio reviews. TruVision Premium Student Loan Attributes enables lenders to view details on student loan types, balances, and payment histories, helping them identify impacted consumers.
About TransUnion (NYSE: TRU)
TransUnion is a global information and insights company with over 13,000 associates operating in more than 30 countries. We make trust possible by ensuring each person is reliably represented in the marketplace. We do this with a Tru™ picture of each person: an actionable view of consumers, stewarded with care. Through our acquisitions and technology investments we have developed innovative solutions that extend beyond our strong foundation in core credit into areas such as marketing, fraud, risk and advanced analytics. As a result, consumers and businesses can transact with confidence and achieve great things. We call this Information for Good® — and it leads to economic opportunity, great experiences and personal empowerment for millions of people around the world. http://www.transunion.com/business
| Contact | Dave Blumberg TransUnion |
| E-mail | david.blumberg@transunion.com |
| Telephone | 312-972-6646 |
FAQ
What percentage of federal student loan borrowers are seriously delinquent as of July 2025?
How much did credit card delinquencies increase among student loan borrowers between December 2024 and June 2025?
What are the main reasons TransUnion (TRU) found for federal student loan payment delinquencies?
How are mortgage delinquencies affected compared to other loans among student loan borrowers?
What potential impact could wage garnishment have on student loan payment priorities?
