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
News Market Reaction
On the day this news was published, TRU gained 0.96%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Market Reality Check
Peers on Argus
TRU gained 3.72%, while peers showed mixed, mostly modest moves (e.g., FDS +0.16%, MSCI +1.95%, MORN -1.64%). This points to a largely stock-specific reaction rather than a broad industry swing.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Dec 09 | Fraud solution upgrade | Positive | -1.0% | Enhanced Device Risk capabilities for better fraud detection and device recognition. |
| Dec 04 | Credit stress study | Positive | +1.0% | Study on rising student loan delinquencies among renters and need for tailored screening. |
| Nov 20 | Consumer spending survey | Positive | -1.4% | Q4 Consumer Pulse survey and launch of Credit Essentials credit-monitoring service. |
| Nov 19 | Gartner leadership nod | Positive | +2.1% | Recognition as a Leader in Gartner’s 2025 Marketing Mix Modeling Magic Quadrant. |
| Nov 18 | Leasing partnership | Positive | +1.2% | Partnership with Snappt to integrate fraud and income verification into TruVision screening. |
Recent TRU news skew positive (product upgrades, partnerships, industry recognition). Price reactions are mixed, with both gains and declines on favorable updates, indicating inconsistent alignment between upbeat news and short-term trading.
Over the last few months, TransUnion has released a series of product, research, and recognition updates. On Nov 18, a partnership with Snappt enhanced TruVision rental screening. On Nov 19, TRU was named a Leader in Gartner’s 2025 Marketing Mix Modeling Magic Quadrant. Consumer and credit behavior research followed on Nov 20, then this renter-focused student loan delinquency study on Dec 4. On Dec 9, TRU upgraded its Device Risk fraud solution. Today’s article extends a clear theme: using proprietary data and tools to address evolving credit and fraud risks.
Market Pulse Summary
This announcement details a sharp rise in student loan delinquencies among renters, from 15% in January to 32% in May 2025, and shows significant downgrades across Super Prime to Near Prime tiers. It underscores how traditional credit scores may miss rental-specific risks and promotes TransUnion’s TruVision Resident Score and fraud tools as alternatives. In context with recent partnerships and fraud-solution upgrades, investors may watch adoption of these rental screening and multifamily fraud products as the credit environment evolves.
AI-generated analysis. Not financial advice.
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?
