Student Loan Delinquencies Surge to Alarming Levels--Credit Score Report

[BumRushDaShow]

Source: Newsweek

Published Dec 07, 2025 at 09:26 AM EST


Financial strains are pushing more Americans into delinquency, according to a report from TransUnion, with student loan borrowers in particularly dire straits following the end of the federal loan forgiveness program.

In a recent analysis, the consumer credit reporting agency found that student loan delinquencies among rental applicants doubled in early 2025, with the share of those 90 or more days past due climbing from 15 percent in January to 32 percent in May. “Consumers across all tiers experienced notable score declines,” TransUnion wrote in its report, noting that more than 2.2 million borrowers saw their scores fall by over 100 points in a matter of months.

Why It Matters

As TransUnion writes, the end of pandemic-era student loan forgiveness has forced millions to make payments for the first time in years, creating a crisis for many of the country’s borrowers that is now “reshaping the rental market and creating new challenges for property managers who rely on credit-based scoring to assess risk.”

And beyond student loans, the country is seeing a surge in delinquencies and defaults across almost every type of credit—a spike experts consider highly irregular and a warning signal for lenders and the broader economy.

Read more: https://www.newsweek.com/student-loan-delinquencies-surge-credit-score-report-11169626

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Link to REPORT - Student Loan Delinquencies Among Renters Double in Early 2025

[hueymahl]

1. They should allow Borrowers to bankrupt these loans

Not a fan of outright forgiveness, though that should be a major part. But allowing borrowers to bankrupt them like any other debt would go a massive way to fixing the entirety of the student loan issues.

[Xolodno]

2. Forgiveness for loans after a period of time.

That would go a long way, then they would just be liable for the tax which can be paid over time like currently, but more manageable.

And of course major reforms.

1. No loans for private schools. They inflate things and force every penny from the loan while guaranteeing you a job.....at Wal Mart.

2. Actually forgive the loans for people who do work as teachers, public sector, non profit, etc. People forgo higher wage jobs for this only to find out, the loan company never kept accurate records or didn't even bother keeping records. Sometimes out right denying they were in a sector that could be construed as forgivable.

3. Scrutinize Public Universities. Chancellors often add "needed" courses to keep the students there longer. Maybe cap administrators pay, number of courses a loan will cover (you know, return to the four year degree algorithm instead of lip service to where its now five or even six), etc. Chancellors should not be riding in limos or taking private jets to "education summits".

[hueymahl]

4. I agree with all of this

I firmly believe that an unintended consequence of making loans so easy to get is the run-away inflation of college tuition. Combine that with kids not having the financial background to understand the impact of the magnitude of the loans plus making it near impossible to discharge the debt is what got an entire generation strung out on debt.

[Stargazer99]

3. If this nation had any brains education and health care would be free as long as the student was

progressing if you want a strong nation but capitalism will happily destroy any genius if they are not financially well off. It is time for this country to quit worshipping wealth as it makes our nation weak

[hueymahl]

5. Capitalism is the worst economic system

Except for all the others.

[ForgoTheConsequence]

6. That's a very basic way to look at economic systems.

Other capitalist countries have figured out higher education and healthcare better than we have. There are nuances to capitalism, unless you think the free market should dictate everything.

[hueymahl]

7. It was just a flippant remark

A play off of churchhill’s comment about democracy. But generally I do think free markets are better at regulating the economy. The rough edges can be regulated, but that always comes with unintended consequences, like we are seeing with student loans. It’s an incredibly hard problem to address, and I don’t think any country has done it effectively.

[Happy Hoosier]

9. The real question is why we treat education as a part of a capitalist economy.

We don't really make things anymore. So we make money by moving it around and extracting profit at every transaction. It's nuts.

[Happy Hoosier]

8. If I were in a position where I HAD to miss a bill...

THAT would be the one.
Our country predates its youth.