A method for identifying a subject currently affected by diabetic nephropathy due to Type I or Type II diabetes, comprising: isolating vesicles that are associated with RNA from a sample of urine that has been obtained from a subject, wherein said sample comprises vesicles that are associated with RNA; lysing said vesicles to release said vesicle-associated RNA, wherein said vesicle-associated RNA comprises an RNA associated with diabetes-induced damage to the nephron, wherein said RNA associated with diabetes-induced damage to the nephron is selected from the group consisting of PPARGC1A, SMAD1, NRF2, UMOD, SLC12A1 and CD24; quantifying said RNA associated with diabetes-induced damage to the nephron by a method comprising: (i) contacting said RNA from said sample with a reverse transcriptase to generate complementary DNA (cDNA), and (ii) contacting said cDNA with sense and antisense primers that are specific for one of PPARGC1A, SMAD1, NRF2, UMOD, SLC12A1 and CD24 and a DNA polymerase to generate amplified DNA; comparing the amount of quantified RNA associated with diabetes-induced damage to the nephron from said sample to a quantity of a corresponding RNA from individuals having normal kidney function; and identifying a subject currently affected by diabetic nephropathy due to Type I or Type II diabetes when there is a difference between the quantity of said RNA associated with diabetes-induced damage to the nephron in said subject and said quantity of the RNA in individuals with normal kidney function. isolating vesicles that are associated with RNA from a sample of urine that has been obtained from a subject, wherein said sample comprises vesicles that are associated with RNA; lysing said vesicles to release said vesicle-associated RNA, wherein said vesicle-associated RNA comprises an RNA associated with diabetes-induced damage to the nephron, wherein said RNA associated with diabetes-induced damage to the nephron is selected from the group consisting of PPARGC1A, SMAD1, NRF2, UMOD, SLC12A1 and CD24; quantifying said RNA associated with diabetes-induced damage to the nephron by a method comprising: (i) contacting said RNA from said sample with a reverse transcriptase to generate complementary DNA (cDNA), and (ii) contacting said cDNA with sense and antisense primers that are specific for one of PPARGC1A, SMAD1, NRF2, UMOD, SLC12A1 and CD24 and a DNA polymerase to generate amplified DNA; (i) contacting said RNA from said sample with a reverse transcriptase to generate complementary DNA (cDNA), and (ii) contacting said cDNA with sense and antisense primers that are specific for one of PPARGC1A, SMAD1, NRF2, UMOD, SLC12A1 and CD24 and a DNA polymerase to generate amplified DNA; comparing the amount of quantified RNA associated with diabetes-induced damage to the nephron from said sample to a quantity of a corresponding RNA from individuals having normal kidney function; and identifying a subject currently affected by diabetic nephropathy due to Type I or Type II diabetes when there is a difference between the quantity of said RNA associated with diabetes-induced damage to the nephron in said subject and said quantity of the RNA in individuals with normal kidney function.