Gen Z’s credit scores are cratering—and Trump’s student loan crackdown is the biggest reason why

Core Insights - The Trump administration's aggressive move to restart student loan collections is leading to a significant decline in credit scores among young Americans, particularly Generation Z [1][6][7] Credit Score Trends - The national average credit score fell to 714 in the second half of 2025, down from 715 in the first half, marking the lowest score since early 2020 [3] - Last year was the worst for U.S. consumer credit quality since the 2008 financial crisis, with delinquencies for auto loans, credit cards, and personal loans at their highest since 2009 [4] Impact on Generation Z - While overall credit scores for most Americans saw modest declines, 14.4% of individuals aged 18 to 29 experienced drops of 50 or more points between 2024 and 2025, compared to only 10% of the general population [5] - More than 7 million student loan borrowers reported new credit delinquencies last year, resulting in an average 62-point drop for those with missed payments, pushing many young Americans out of prime borrowing status [6][7]