View the new fact sheet on student debt in Los Angeles, California here: https://protectborrowers.org/resource/fact-sheet-la-borrowers-economic-hardship-due-to-impending-student-loan-default-crisis/ 

The roundtable and data come as borrowers across California face economic hardship and an impending student loan default cliff, the Trump Administration’s new rule restricting Public Service Loan Forgiveness, and widespread chaos across the student loan landscape.

“A college education should strengthen a person’s economic stability, yet rising student debt is limiting those opportunities. We must reform student loan programs to make higher education more affordable and accessible for all, especially for low-income first-generation college students,” said Community Investment for Families Department General Manager Abigail R. Marquez.“Student debt has become a burden that perpetuates financial hardship in Los Angeles and beyond, with more than one in six adults in our region carrying student loan debt that hinders their future and their families’. It’s critical that we champion real financial relief and empower students to pursue their goals and build lasting economic stability.”

“In 2026, hundreds of thousands of California student loan borrowers will fall off the student loan ‘default cliff,’” said Robyn Smith, Senior Attorney at the Legal Aid Foundation of Los Angeles. “Providing free student loan assistance to Californians has never been more necessary to ensure that these borrowers and their families avoid wage garnishment, income tax refund seizures, and other consequences likely to cause severe financial hardship.”

“Young people were told their whole lives that pursuing a degree was the path to the American Dream. They followed that advice and are now being crushed by it,” said Katrina Linden, Western Regional Director at Young Invincibles. “California borrowers face insurmountable debt and are left to bear high monthly payments while trying to make sense of conflicting narratives about their loans. We must expand access to affordable higher education and create real pathways to repayment, rather than pushing borrowers toward default, delinquency, and deeper financial hardship. Reforming the student loan system isn’t optional; it’s an obligation.”

“Families in Los Angeles and across California face numerous challenges, including rebuilding after wildfires, ICE raids, and a significant cost-of-living crisis, all compounded by the growing student debt crisis, pushing Americans with student debt to their limits with unaffordable loan bills, rising delinquencies, and the threat of widespread default,” said Sabrina Calazans, Executive Director of Student Debt Crisis Center. “In this moment of crisis, Americans with student debt need leaders to step up and deliver solutions that truly put their needs first and reduce financial strain.”

“An impending student loan default cliff threatens to harm countless borrowers already struggling with unaffordable student loan bills. As borrowers face an uncertain, ever-changing broken student loan system and student debt delinquencies continue to climb, borrowers and their families need support,” said Jacob DuMez, Senior Fellow at Protect Borrowers. “The City of Los Angeles is taking action to protect and guide student loan borrowers—cities, local advocate organizations, and elected officials across the country have the power and responsibility to follow suit.”

The highlighted released data also underscores the profound impact of racial and gender disparities of the crisis locally:

• Delinquent student debt has increased by 385.2% over the past year

• Women owe a majority of the local total student debt, shouldering $46.6 billion

• 92,799 Los Angeles student loan borrowers are severely delinquent

###

The Community Investment for Families Department (CIFD) was officially created in 2022 to establish poverty-reduction goals for the City; play an active role in implementing homelessness prevention programs, and build a path for Los Angeles community residents in need to create financial security and paths to prosperity. For more information about our programs, please visit us at www.LA4Families.org.

Legal Aid Foundation of Los Angeles (LAFLA) is a nonprofit law firm that seeks to achieve equal justice for people living in poverty across Greater Los Angeles. LAFLA changes lives through direct representation, systems change, and community empowerment. It has five offices in Los Angeles County, along with four Self-Help Legal Access Centers at area courthouses, and three domestic violence clinics to aid survivors.

Student Debt Crisis Center is a national advocacy organization with 2,000,000 supporters calling for fundamental reforms to student loan policies and an end to the student debt crisis. Learn more here.

Young Invincibles (YI) is a national advocacy and policy nonprofit organization amplifying the voice of young people in the political process at the local, state, and federal levels. We focus on issues affecting 18- to 34-year-olds, including higher education, health care, economic security, and civic engagement. YI has offices in Washington, D.C., California, Colorado, Illinois, New York, and Texas. For more information, please contact Emma Bittner at (972) 510-3395 or emma.bittner@younginvincibles.org

Protect Borrowers (formerly Student Borrower Protection Center) is a nonprofit organization led by a team of experts, lawyers, and advocates fighting to build an economy where debt doesn’t limit opportunity. We investigate financial abuses, take predatory companies to court, and push for policies to protect working people from debt traps. We aim to deliver immediate relief to families while building power, driving systemic change, and fighting for racial and economic justice. Learn more at protectborrowers.org or follow us on social @BorrowerJustice.

*Photo: LAFLA attorney Robyn Smith with roundtable co-hosts Kristin (Young Invincibles) and Natalia (Student Debt Crisis)

*Photo: Community members participate in the roundtable discussion on the student loan debt crisis