The end of the federal student loan forgiveness program has prompted millions of borrowers to resume monthly payments, leading to strained finances and declining credit scores.
As a result, the share of rental applicants who are at least 90 days delinquent on student loans has more than doubled, climbing from 15% in January 2025 to 32% in May 2025, according to a TransUnion analysis released on Thursday.
The findings were detailed in TransUnion’s ebook, “Trapped by Tuition: The New Reality of Renting.”
More than 2.2 million borrowers saw their credit scores drop by 100 points or more in just a few months, and one in three borrowers making payments are now 90-plus days past due, TransUnion found. One in five borrowers have stopped making payments altogether.
“The influx of applicants struggling with student loan payments could significantly impact property managers,” said Maitri Johnson, executive vice president of TransUnion’s tenant and employment screening business. “Applicants who once met screening thresholds are now falling short.”
Property managers who rely on credit-based screening are now seeing increased risk among applicants. TransUnion reported that renters with prime credit scores between 661 and 720, once considered low risk, are slipping into riskier categories, with score declines appearing across all tiers.
The report also warns that renters’ financial stress is fueling an increase in fraud, with some applicants falsifying documents or misrepresenting income. And as student loan delinquencies rise and credit tiers slip, the report recommends that property managers adapt their screening strategies.
