Student debt can make it harder to rent an apartment

If you’ve fallen behind on your student loans, it may be more challenging to get a property manager to approve you for rental housing, financial experts say.

“Delinquency is a bad sign for creditworthiness, and landlords may choose not to rent to potential tenants who are having a hard time paying off their student debt,” said Joel Berner, a senior economist at Realtor.com.

Many people may be running into that scenario. The number of rental applicants who were more than 90 days delinquent 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 company. Separately, 45% of federal student loan borrowers say their debt has negatively impacted their housing plans, according to research published this month from The Institute for College Access & Success, a nonprofit that advocates for college affordability.

More than 42 million Americans hold student loans, and the outstanding debt exceeds $1.6 trillion.

Student loan borrowers have been under pressure from a weakening labor market, a barrage of changes to the lending system and recent trouble accessing relief programs under the Trump administration. More than 5 million borrowers are currently in default, and that total could swell to roughly 10 million borrowers soon, the Department of Education said earlier this year.

Behind on your student loans and looking for a rental? Financial experts shared these five tips.

The best thing a past-due student loan borrower looking for new housing can do is move to 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 roughly 90 days, and borrowers are typically considered to be in default when they haven’t made a payment in at least 270 days.

Borrowers can often get out of a delinquency status by making a payment on their student debt or enrolling in a forbearance, Mayotte said. There are also economic hardship and unemployment deferments available for those who qualify, both of which keep your loan payments paused and out of the red. Those who are further behind can contact the government’s Default Resolution Group and sign up for a loan rehabilitation or loan consolidation. 

These processes might take time — especially for those in default — but it can be helpful to show a prospective landlord that you’ve taken steps to get current on your payments, Mayotte said.

“They can try and provide proof they are enrolled in those programs and include information as to how the programs put them back in good standing,” Mayotte said.

“A lot of property managers rely on credit reporting tools to evaluate potential renters,” said Amanda Push, a deputy editor at LendingTree. “This could be devastating to the millions of borrowers who are now behind on their student loan payments.”

Indeed, the Federal Reserve estimated in March that some people with a student loan delinquency could see their scores fall by as much as 171 points. Credit scores typically range from 300 to 850, with scores of around 670 and higher considered good. A helpful thing to know: Most property managers look for a credit score over 600, and “above 650 would be even better,” said Ted Rossman, a senior industry analyst at Bankrate.

Past-due student loan borrowers should try to initiate an honest conversation with their prospective landlord, Push said: “Be upfront about your poor credit history.”

This is a chance to be transparent about the reasons you fell behind on your student loans, Push said. Property managers may start making exceptions around education debt as repayment struggles become commonplace, she said.

“You don’t need to go into full-blown detail, but providing context can go a long way in smoothing things out with a prospective landlord and landing you a new home,” Push said.

It’s also possible to find property owners who will look at metrics other than credit when deciding whether or not to rent to you, Push said: “A thoughtful landlord will know that a low credit score doesn’t paint a full picture.”

“Some will weigh more heavily things like your income, employment and positive rental history,” she said.

Push recommends highlighting any of the above strengths to a prospective landlord. A healthy savings account and references from a prior landlord can also be persuasive, she said.

If a landlord is concerned about your credit, you may be able to negotiate a larger upfront payment or additional months of rent, Push said.

But if a property manager is requiring you to pay a bigger security deposit, keep in mind that some states have set limits on how much you can be charged, said certified financial planner K.C. Smith, managing associate at Henssler Financial in Kennesaw, Georgia. The firm ranked No. 46 on CNBC’s Financial Advisor 100 list for 2025.

Another strategy for would-be tenants who’ve been struggling with their student debt is to get a cosigner or guarantor with strong credit, Push said. Doing so can boost “your chances of getting approved since you won’t be the only person taking responsibility for rent,” she said.

A cosigner 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. Meanwhile, a guarantor “assumes financial responsibility for the rental property if the tenant fails to pay rent,” the association notes.

If these options won’t work, you may have to “consider alternative housing options,” Smith said, “like subletting or roommate arrangements or moving in with friends or family while [your] credit is being repaired.”

If you feel you’ve been rejected for a rental unit that you can in fact afford, consider reaching out to the landlord and politely questioning their decision, said Ariel Nelson, senior attorney with the National Consumer Law Center.

“Landlords don’t typically have an actual appeal process, but it can help to reach out after the fact,” Nelson said. If you haven’t gotten the chance to explain your financial history and to emphasize any strong points, this is a good time to do so.

You can also contact your local legal aid organization for help determining 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 assist you with finding housing.

Lastly, you should pull your credit report and make sure it’s correct, she said. Any dated or erroneous marks can be disputed with the credit rating companies.

Disclosure: CNBC receives no compensation from placing financial advisory firms on our Financial Advisor 100 list. Additionally, a firm or an advisor’s appearance on our ranking does not constitute an individual endorsement by CNBC of any firm or advisor.