CALIFORNIA — A new analysis by the California Policy Lab (CPL) shows that student loan delinquencies in California are rising, especially among older borrowers. 

As of Q2 2025, 11% of student loan borrowers are at least 30 days late on payments, with Boomers and Gen X delinquency rates around 12%, compared to 9.4% for Gen Z. 

Older borrowers tend to carry larger monthly loan bills.

The average Boomer pays about $150 per month — more than double the $62 Millennials pay and nearly six times the $26 average for Gen Z.

The increase in delinquencies is being driven by rural and lower-income regions. In the Central Valley, more than 16% of borrowers are delinquent, while in urban areas like the Bay Area and Los Angeles it’s closer to 10%. 

Meanwhile, average monthly payments have dropped 37% since early 2020, in part because more borrowers are in income-driven repayment or have benefited from student debt forgiveness. 

There’s also a shift in new borrowing: the average amount of new student loans in California has dropped to about $13,200, down 23% from the prior year’s $17,100.

This may reflect students choosing cheaper schools — or being wary of repayment challenges faced by others. 

Older borrowers more vulnerable to falling behind

• Older borrowers with higher payments are more vulnerable to falling behind and may have fewer resources to recover. Extended repayment plans may help, but the burden remains steep.

• Regions with fewer economic opportunities, like the Central Valley, are seeing worse delinquency, showing debt trouble is geographically uneven.

• The drop in new loan sizes signals that prospective students may be altering educational choices due to financial risk.

Other delinquencies are also rising 

The report shows other forms of debt are also under stress, with auto and credit card delinquencies climbing to their highest levels in more than a decade.

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