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 15% in January to 32% in May. Full findings appear in the ebook Trapped by Tuition: The New Reality of Renting.
“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) | 51% fell to Prime; 45% to Near Prime |
| Prime Plus (721–780) | 34% fell to Prime; 58% to Near Prime |
| Prime (661–720) | 59% fell to Near Prime; 23% to Sub Prime |
| Near Prime (601–660) | 63% fell to Sub Prime |
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
