Student Loan Delinquencies Among Renters Double in Early 2025
Rhea-AI Summary
TransUnion (NYSE: TRU) reports student loan delinquencies among rental applicants 90+ days past due more than doubled in early 2025, rising from 15% in January to 32% in May. The ebook Trapped by Tuition shows credit-score slippage across renter cohorts and argues traditional credit scores miss rental-specific risks like eviction history and payment behavior.
Key table movements include large downgrades for high-tier renters: Super Prime and Prime Plus cohorts shifted substantially into lower tiers, while Prime and Near Prime saw major downward moves. TransUnion recommends purpose-built rental risk models and multifamily fraud tools to reduce exposure and speed leasing decisions.
Positive
- 90+ day student loan delinquencies rose to 32% in May 2025
- Delinquencies more than doubled from January to May 2025
- Super Prime: 51% moved to Prime; 45% to Near Prime
- Prime: 59% moved to Near Prime; 23% to Sub Prime
Negative
- Prime renter cohort saw 59% downgrade to Near Prime
- Near Prime cohort had 63% fall to Sub Prime
- Traditional credit scores overlook eviction and rental payment data
Insights
Rising student loan delinquencies are increasing rental-screening risk and pressuring credit-based tenant selection in early
TransUnion reports applicants 90+ days delinquent on student loans rose from
Risk depends on three explicit facts: the doubling of 90+ day student loan delinquencies, the documented tabulated tier shifts, and the continued use of traditional credit scores by many managers. These facts increase eviction and income-verification challenges and raise fraud risks, as the report states applicants may misrepresent income under stress. The outcomes hinge on screening model choice; adopting purpose-built rental risk models or multifamily fraud tools, as mentioned, can alter exposure without shrinking applicant pools.
Watch concrete, monitorable items over the near term: the persistence of the
Property managers encouraged to update screening processes, TransUnion reports
CHICAGO, Dec. 04, 2025 (GLOBE NEWSWIRE) -- The end of the federal student loan forgiveness program has left millions of borrowers facing monthly payments for the first time in years. This financial strain is reshaping the rental market and creating new challenges for property managers who rely on credit-based scoring to assess risk.
A recent TransUnion (NYSE: TRU) analysis reveals that the number of rental applicants 90+ days delinquent on student loans more than doubled in the first half of 2025, climbing from
“The influx of applicants struggling with student loan payments could significantly impact property managers,” said Maitri Johnson, EVP of TransUnion’s tenant and employment screening business. “Applicants who once met screening thresholds are now falling short.”
The report shows renters with Prime credit scores (661-720) – previously considered low risk – are slipping into riskier categories. Consumers across all tiers experienced notable score declines.
Credit Score Shifts for Renters Across Risk Tiers
| Tier | Key Movement |
| Super Prime (781–850) | |
| Prime Plus (721–780) | |
| Prime (661–720) | |
| Near Prime (601–660) |
According to TransUnion® TruVision™ Resident Score 4.0
Traditional credit scores predict loan repayment, not rental performance. They overlook critical indicators such as eviction history and rental payment behavior. Property managers using purpose-built rental risk models can reduce exposure without shrinking applicant pools, enabling faster, more confident leasing decisions.
The report also warns that financial stress drives fraud. Renters under pressure may falsify documents or misrepresent income. Multifamily-specific fraud detection tools can help verify identities, flag suspicious applications, and prevent costly evictions.
“Student loan stress is reshaping the rental landscape, and traditional screening methods simply can’t keep up,” said Johnson. “With delinquencies doubling and credit tiers slipping, property managers must evolve their strategies.”
For more information about TransUnion’s TruVision™ Resident Screening solution, click here.
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
How much did 90+ day student loan delinquencies among renters increase in early 2025 for TRU?
Which renter credit tiers showed the largest downgrades in TransUnion's May 2025 data (TRU)?
What screening action does TransUnion recommend for property managers (TRU)?
Does TransUnion say traditional credit scores predict rental performance (TRU)?
Where can investors find the detailed TransUnion analysis on renter delinquencies (TRU) dated Dec 4, 2025?
