Argentina's youth debt crisis tests Milei's support

Two years after starting law school at the University of Buenos Aires, Martín Taborda's dream of becoming the first in his family to graduate is fading. Unemployed and $1,300 in debt, he can't afford bus fare or books, even at a tuition-free university that has long been a pathway to the middle class.

Taborda is part of a broader trend. Nearly half of Argentina's 45 million people owe money, and over 5 million are behind on payments, according to the Center for City Studies. Borrowers under 25 have the highest delinquency rate of any age group at 37.6%.

"There's hardly any work for anyone in this country right now," Taborda said. He borrowed just over $100 through a mobile payment app in 2024 for education expenses, but his debt grew tenfold as interest piled up on missed payments.

The debt squeeze is testing support for President Javier Milei among the young voters who helped elect him. Opposition lawmakers have called a special session of Congress to consider interest-rate caps and other measures to help Argentines renegotiate debts. Labor unions and debtors plan to protest outside during the debate.

"Households took on debt to survive and now cannot repay it," left-wing lawmaker Nicolás del Caño and fellow sponsors wrote in their proposal, calling it "an emergency measure to address the crisis."

Milei has rejected calls for government relief, arguing unpaid debts are a private matter. Economy Minister Luis Caputo promised banks were easing repayment terms but added, "We shouldn't confuse empathy with public policy."

Since taking office in late 2023, Milei has slashed the budget deficit and brought annual inflation down from 289% in early 2024 to about 34% in July. But cuts to subsidies for gas, electricity, and transport have pushed bills up faster than incomes, forcing many to borrow to get by.

Digital payment apps require less paperwork than banks but often charge much higher interest, with annual rates reaching triple digits.

"There was a time when people took out loans to buy a house, an apartment, a car," said Vanesa Bittoco of Organized Debtors. "Now people take out loans to buy food to make it to the end of the month."

At a recent anonymous debtors' meeting at the university, students described feeling trapped and ashamed. More than 80% of adults surveyed in Buenos Aires in April said economic problems had a major impact on their psychological well-being.

Experts warn the debt struggles could erode Milei's support among young voters ahead of the 2027 presidential election. A recent poll by Zuban Córdoba put approval of Milei's administration at 33%, down from 49% in December 2025.

Milei has shown little sympathy, blaming the surge in delinquencies on irresponsible spending. "They bought TVs to watch the World Cup and figured they'd decide later whether to pay," he told investors last month.

"They're going to have to provide a solution," Bittoco said of the government. "Otherwise, they're the ones who will have a problem."