{"id":6094,"date":"2025-07-23T09:27:48","date_gmt":"2025-07-23T14:27:48","guid":{"rendered":"https:\/\/niada.com\/dashboard\/?p=6094"},"modified":"2025-07-23T09:27:51","modified_gmt":"2025-07-23T14:27:51","slug":"report-shows-how-end-of-student-loan-relief-reshapes-auto-lending","status":"publish","type":"post","link":"https:\/\/niada.com\/dashboard\/report-shows-how-end-of-student-loan-relief-reshapes-auto-lending\/","title":{"rendered":"Report shows how end of student loan relief reshapes auto lending"},"content":{"rendered":"\n<p>As student loan delinquencies reappear on credit reports, millions of consumers are being reclassified as subprime, despite staying current on their auto loans.<\/p>\n\n\n\n<p>Cox Automotive Chief Economist Jonathan Smoke, in collaboration with Shams Blanc, vice president and head of scores for the auto industry at FICO, analyzes this trend in the article \u201c<a href=\"https:\/\/www.coxautoinc.com\/market-insights\/end-of-student-loan-relief-reshapes-auto-lending\/\" target=\"_blank\" rel=\"noopener\">End of Student Loan Relief Reshapes Auto Lending<\/a>.\u201d<\/p>\n\n\n\n<p>The federal forbearance on student loans ended in October 2024. Blanc points out approximately 2 million auto loan borrowers had a student-loan delinquency added to their credit in the first quarter of 2025.<\/p>\n\n\n\n<p>\u201cOne in five of these consumers saw their score drop by 100 points or more overnight,\u201d Blanc said.<\/p>\n\n\n\n<p>But the lower scores do not directly reflect their ability or willingness to fulfill obligations on vehicle loans. Blanc said many of these new subprime consumers are still current on car loans and are&nbsp; \u201cfour times\u201d more likely to make car payment than student loan payment.<\/p>\n\n\n\n<p>\u201cCars remain essential and auto payments continue to come first,\u201d Blanc said.<\/p>\n\n\n\n<p>Lenders and dealers are encouraged to look beyond the score and analyze why consumers\u2019 credit has slipped.<\/p>\n\n\n\n<p>\u201cFor lenders, the opportunity \u2013 and the risk \u2013 lies in understanding why a score dropped, and knowing how to manage this larger, more complex subprime pool,\u201d Blanc said.<\/p>\n\n\n\n<p>See the full article <a href=\"https:\/\/www.coxautoinc.com\/market-insights\/end-of-student-loan-relief-reshapes-auto-lending\/\" target=\"_blank\" rel=\"noopener\">here<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"As student loan delinquencies reappear on credit reports, millions of consumers are being reclassified as subprime, despite staying&hellip;\n","protected":false},"author":1,"featured_media":5691,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_singular_sidebar":"","csco_page_header_type":"","csco_appearance_grid":"","csco_page_load_nextpost":"","csco_post_video_location":[],"csco_post_video_location_hash":"","csco_post_video_url":"","csco_post_video_bg_start_time":0,"csco_post_video_bg_end_time":0,"footnotes":"","_links_to":"","_links_to_target":""},"categories":[9,3],"tags":[],"class_list":{"0":"post-6094","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance-insurance","8":"category-industry","9":"cs-entry","10":"cs-video-wrap"},"_links":{"self":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/6094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/comments?post=6094"}],"version-history":[{"count":0,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/posts\/6094\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media\/5691"}],"wp:attachment":[{"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/media?parent=6094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/categories?post=6094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/niada.com\/dashboard\/wp-json\/wp\/v2\/tags?post=6094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}