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If you've defaulted on your student loans, it may be harder to get a property manager to give you a rental housing approval, according to financial experts.
“Late payments are a bad sign for credit, and landlords may choose not to rent to potential tenants who are struggling to pay off their student debt,” said Joel Berner, senior economist at Realtor.com.
Many people could find themselves in this scenario. The number of rental applicants who were more than 90 days behind on their education debt more than doubled from 15% in January to 32% in May, according to a new analysis from TransUnion, a credit rating firm. Separately, 45% of federal student loan borrowers say their debt has negatively impacted their housing plans. That's according to a study released this month by the Institute for College Access & Success, a nonprofit organization that advocates for college affordability.
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More than 42 million Americans have student loans and outstanding debt totals over $1.6 trillion.
Student loan borrowers have been under pressure from a weakening job market, a flurry of changes to the lending system and recent problems accessing relief programs under the Trump administration. More than 5 million borrowers are currently delinquent, and that number could soon rise to about 10 million borrowers, the Education Department said earlier this year.
Are you behind on your student loans and looking for a rental? Financial experts shared these five tips.
1. Show that you are resolving the insolvency or insolvency
“The best thing a delinquent student loan borrower looking for new housing can do is resolve the delinquency or default,” said Betsy Mayotte, president of the Institute of Student Loan Advisors, a nonprofit that helps borrowers navigate repayment.
Your student loan servicer will report you as delinquent to the national credit rating companies after about 90 days. Borrowers are typically considered in default if they have not made a payment for at least 270 days.
Borrowers can often get out of default by paying off their student debt or signing up for forbearance, Mayotte said. For those who qualify, there are also financial hardship and unemployment deferrals that will keep your loan payments on hold and keep you out of the red. Those who are further behind can contact the government's Default Resolution Group and enroll in credit rehabilitation or loan consolidation.
These processes can take time — especially for those who are behind — but it can be helpful to show a potential landlord that you've taken steps to stay current on your payments, Mayotte said.
“They can try to provide proof that they are enrolled in these programs and include information about how the programs are getting them back in good standing,” Mayotte said.
2. Be open when it comes to bad credit
“Many property managers rely on credit reporting tools to evaluate potential renters,” said Amanda Push, deputy editor at LendingTree. “This could have devastating consequences for the millions of borrowers who are now behind on their student loan payments.”
In fact, the Federal Reserve estimated in March that some people with student loan delinquency could see their scores drop by as much as 171 points. Credit scores are typically between 300 and 850, with scores around 670 and higher considered good. A helpful piece of information: Most property managers aim for a credit score above 600, and “above 650 would be even better,” said Ted Rossman, a senior industry analyst at Bankrate.
Borrowers whose student loans are delinquent should try to start an honest conversation with their potential landlord, Push said: “Be open about your poor credit history.”
Landlords may choose not to rent to potential tenants who are struggling to pay off their student debt.
Joel Berner
a senior economist at Realtor.com
“This is a chance to be transparent about why you defaulted on your student loans,” Push said. Property managers may start making exceptions for education debt as repayment difficulties are common, she said.
“You don't have to go into detail, but providing context can go a long way toward smoothing things out with a potential landlord and getting you a new home,” Push said.
3. Highlight your strengths
It's also possible to find property owners who consider metrics other than credit scores when deciding whether or not to rent to you, Push said: “A prudent landlord knows that a low credit score doesn't give a complete picture.”
“Some will place greater emphasis on factors such as your income, employment and positive rental history,” she said.
Push recommends emphasizing one of the above strengths to a potential landlord. A healthy savings account and references from a previous landlord could also be convincing, she said.
If a landlord has concerns about your credit score, you may be able to negotiate a larger upfront payment or additional months' rent, Push said.
However, if a property manager requires you to pay a higher deposit, keep in mind that some states have set caps on the amount of the deposit, said certified financial planner KC Smith, managing partner at Henssler Financial in Kennesaw, Georgia. The company ranked No. 46 on CNBC's Financial Advisor 100 list for 2025.
4. Consider a guarantor
Another strategy for potential renters struggling with student debt is to hire a co-signer or guarantor with good credit, Push said. This can “increase your chances of getting approved because you are not the only person responsible for the rent,” she said.
A co-signer is equally responsible for the rent and “signs the lease and has the right to live in the rented space,” according to the American Apartment Owners Association. A guarantor now “takes financial responsibility for the rental property if the tenant does not pay his rent,” the association notes.
If those options don't work, you may need to “consider alternative housing options,” Smith said, “such as subletting or roommate arrangements or moving in with friends or family.” [your] Credit will be repaired.”
5. Advocate for yourself
If you feel like you've been turned down for a rental unit you can actually afford, you should contact the landlord and politely question their decision, said Ariel Nelson, senior attorney at the National Consumer Law Center.
“Landlords typically don’t have a true appeals process, but it can be helpful to reach out after the fact,” Nelson said. If you haven't had a chance to explain your financial history and highlight your strengths, this is a good time to do so.
You can also contact your local legal aid organization to find out whether you may have a claim under the Fair Credit Reporting Act or the Fair Housing Act, Nelson said. Such organizations may also be able to help you find housing.
Lastly, you should check your credit report and make sure it is accurate, she said. Any dated or incorrect markings can be disputed with the rating agencies.
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