Performance Report: Consumer Unsecured and Subprime Auto, June 2025

Quick Insights

Unsecured Personal Loan Borrowers Prove Resilient Again

• 30+ impairments declined 17 bps, outperforming seasonality for the second consecutive month
• Cure rates set a new record, while Made Payment rates hovered near peak levels
• 2024 vintages now exceed pre-COVID performance when evaluated by original balance

Subprime Auto Enters Uncharted Territory

• 30+ impairments surged 170 bps MoM, the largest single-month June spike ever
• Cure rates hit a record low, while Made Payment rates suggest partial payment behavior
• Loss severities climbed again, now 900+ bps above 2019 despite elevated vehicle values

Student Loans Struggle to Normalize Post-Forbearance

• 37% of balances in repayment are now 30+ days delinquent, triple pre-COVID levels and the highest on record
• Delinquencies are concentrated in 90+ day buckets, highlighting a lack of resolution tools or discharge mechanisms
• IDR usage is shifting structurally—loan count under IDR is rising, but balance share is falling, suggesting high-balance borrowers are refinancing out and leaving behind lower-value debt