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

The Trump administration has moved aggressively to restart student loan collections, and a record number of borrowers can’t keep up. The result is showing up in a damaging and lasting way: a generation of young Americans is watching its credit scores collapse.

Credit scores are a core part of personal finance in the U.S. They determine Americans’ access to favorable loans, credit cards, and can even factor into applying for a job. Having good credit is especially relevant for young people, who can benefit the most from better loan terms and job opportunities as they make major financial decisions.

Without years of a good credit baseline, Generation Z is also the most likely to suffer the biggest drops when things go wrong.

Gen Z Bears the Brunt of Falling Credit Scores

Credit scores are dipping for all Americans. The national average credit score fell to 714 in the second half of 2025, according to a report released Tuesday by FICO, an analytics company that produces the most widely used credit scoring model. It was a decline from the 715 average recorded in the first half of the year, and represented the lowest score since early 2020.

Last year already ranked as the the worst for U.S. consumer credit quality since the 2008 financial crisis, FICO reported in September, when the agency found that 2025 delinquencies for auto loans, credit cards, and personal loans were at their........

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