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18% of California student loans are delinquent

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18% of California student loans are delinquent


Despite the financial stress of Golden State life, Californians are relatively good at paying bills compared with the rest of the nation.

Take student loans. In the first quarter of 2025, 18% of California student loans were late.

That may seem like a stunningly high rate of skipped payments, but it’s the 10th lowest delinquency rate among the states and the District of Columbia. And across the nation, 23% of student loans were delinquent.

That’s what was found by my trusty spreadsheet’s review of bill-payment data from the Federal Reserve Bank of New York. The research, from 2003 to the first quarter of 2025, examines debt levels and payments drawn from individuals with credit histories.

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The latest report was the first since student-loan repayment reprieves ended. That means late payments on many educational loans were once again being reported to credit bureaus. This provides a window into the scope of this education-linked financial challenge.

Student loans are roughly 5% of all California debts. These borrowings equal $4,660 per capita of the $87,620 total consumer borrowings statewide.

Nationally, it’s a bigger hurdle: student loans run $5,470 per capita – or 9% of Americans’ $62,490 per capita debts.

The ability to pay varies wildly. Mississippi was the worst at student-loan repayment, with 45% of these debts in arrears, followed by Alabama, Wisconsin, Kentucky, and Oklahoma, all at 34%.

The best at making payments lived in Illinois and Massachusetts, with 14% delinquency, followed by Connecticut, Virginia and New Hampshire were next at 15%.

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To start 2025, only 1.9% of all California consumer debts were 90 days or more past due.

Yes, skipped bills increased from 1.6% at year-end 2024.  And it’s California’s highest level of tardy bills since the second quarter of 2020, when coronavirus lockdowns severely impacted the economy.

However, this level of delinquency is significantly lower than the 3.6% average lateness since 2003.

Nationally, 2.9% of bills were late in the first quarter, up from 1.9% at year’s end. Like California, the rate is still historically low. American tardiness has averaged 3.8% during the last 22 years.

California’s economy also has its challenges. Job creation has slowed to a crawl. The state remains unaffordable for the masses. The Trump administration’s “America First” thinking collides with California’s globally oriented business climate. Consumer confidence is also down.

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That monetary angst can be found in the slowdown in Californians taking on new debts.

In the first quarter, total borrowings increased at an annual rate of only 0.8%. That’s well below the 3.3% growth pace since 2003.

It’s a similar picture across the nation. Borrowings are up 1% in a year vs. a 3.3% average growth.

Home sweet home

The New York Fed tells us Californians are getting better with home loans, which are 81% of all consumer debts statewide.

Just 0.56% of mortgage balances were 90 days or more late to start 2025. That’s down from 0.58% at year’s end. Although we’ll note that the late mortgage level in the fourth quarter of 2024 was the highest since the second quarter of 2020.

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And lateness is historically low – below the average 2.8% late home loans since 2003.

Equally noteworthy is that California’s improvement rate comes as more Americans fail to make timely payments on mortgages, which are 70% of all U.S. consumer debts.

In the first quarter, 0.9% of U.S. home loans were late – the worst payment pace in five years. That’s up from 0.6% at year’s end, but this is still comfortably below the 2.6% historical norm.

There is a rising level of deeply troubled homeowners.

California had 15 new foreclosures per 1,000 consumers in the first quarter. That’s the highest since the first quarter of 2020 and up from 12 at year’s end. But to be fair, it’s also nowhere near the 88 per 1,000 average since 2003.

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Same story nationally with 21 U.S. foreclosure starts per 1,000 consumers – up from 14 at year’s end but off the 70 historic pace.

Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com



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Rain continues in parts of California reeling from flooding and high tides – WTOP News

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Rain continues in parts of California reeling from flooding and high tides – WTOP News


CORTE MADERA, Calif. (AP) — Crews cleared mud from key California highways as forecasters warned Sunday that more thunderstorms were…

CORTE MADERA, Calif. (AP) — Crews cleared mud from key California highways as forecasters warned Sunday that more thunderstorms were on the way after downpours and high tides caused flooding, road closures and rescues of people trapped in cars.

Five northern counties remained under a flood watch, with up to three inches (7.6 cm) of rain possible through Monday night in areas that have been drenched off and on since around Christmas, said the National Weather Service office in Eureka. At least a foot (.3 meters) of snow was likely in the mountains.

To the south near the San Francisco Bay Area, waters were slowly receding after roadways from Sausalito to San Rafael were flooded during heavy rain that coincided with record-breaking “ King Tides.” Such tides occur when the moon is in its closest position to the Earth, creating a stronger gravitational pull.

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Some people kayaked along swamped streets, while others waded through water above their knees. Authorities were called to assist when cars got stuck in water as high as 3 and 4 feet (1.1 and 1.2 meters), Marin County Sheriff’s Sgt. Michael Dobbins said Saturday.

“I’ve been around here for the King Tides and I’ve never seen it this high. Never,” Jeremy Hager of San Rafael told KTVU-TV.

Flooding was reported across Marin, Sonoma, Alameda, San Mateo and San Francisco counties.

While the tides were waning, lingering thunderstorms on Sunday could cause additional problems throughout low-lying areas, forecasters said. “For anyone driving, slow down and allow extra time to reach your destination,” the Bay Area office of the weather service warned on social media.

Farther south in Santa Barbara County, a key highway was reopened Sunday after it was blocked for most of the weekend near Goleta due to a series of mudslides. A man died after he was swept into a creek during the storm, the sheriff’s office said Saturday.

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Parts of Santa Barbara County received more than four inches (10 cm) of rain over two days, the weather service said Sunday.

After a mostly dry autumn, California has been hit by a series of powerful winter storms that brought the wettest holiday season to the state in years.

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© 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, written or redistributed.



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California’s gubernatorial race heats up as Newsom’s term nears end, with many contenders

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California’s gubernatorial race heats up as Newsom’s term nears end, with many contenders


In just over a year, Gavin Newsom’s term as California’s governor will come to an end, capping off nearly eight years in office.

Now the question is – who will take over once he steps down?

We spoke to political scientist Nathan Monroe about what could be one of Californias most unpredictable gubernatorial races yet.

With Governor Gavin Newsom’s term ending, the race to replace him begins.

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This race will determine who leads the worlds fifth largest economy at a time when California is facing issues such as housing and affordability.

Californias next gubernatorial election is shaping up to be crowded – and for the first time in years – there’s no incumbent on the ballot.

“You say, well, just which democrat is going to win, right? Like, sort of republicans don’t have a shot. But what we have to keep in mind, right, is that the rules of elections matter. And in California, we have the top two primary system,” said Nathan Monroe, a Political Science Professor at UC Merced.

More than a dozen candidates are vying for the spot.

On the democratic side, contenders include former U.S. Secretary of Health and Human Services Xavier barrera, former U.S. Representative Katie Porter, Representative Eric Swalwell, former Los Angeles Mayor Antonio Villaraigosa, and former State Controller Betty Yee.

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Political experts say the size of the field could make turnout and name recognition decisive and could lead to unexpected results in the primary.

“But if you divide that pie up by just two, and you divide the democratic pie up, which is admittedly a larger pie, by 7 or 8, the concern you get here is that democrats are going to lose out on even running to the general election. So even though there might be more democratic votes to be found in California for governor, they might not have a shot to cast those ballots for a democrat on the general election ballot,” said Monroe.

Monroe says party leaders may need to step in soon.

“I think the concern has to be among voters and I’m sure among the party leaders, so to speak, right, the party leaders sort of amorphously, is that they’ve got to figure out a way to delicately, you know, assure some candidates out of the race and figure out which candidates those should be and figure out how to manage those personalities and try to coordinate all the things that go in and around a gubernatorial election,” said Monroe.

On the Republican side, former Riverside County Sheriff Chad Bianco and Fox News contributor Steve Hilton.

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With just a few months from the midterm elections, Monroe says both parties need to organize.

“What’s happening behind the scenes for the parties to try to coordinate themselves to make sure that the field that they offer to voters in June is a field that gives them the best chance for their best candidate to go forward to the general election,” said Monroe.

The primary election is set for June, with the general election in December.



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Heavy rain, high tides cause flooding along stretch of Northern California

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Heavy rain, high tides cause flooding along stretch of Northern California


CORTE MADERA, Calif. (AP) — Heavy rain and high tides believed to be the most severe in two decades caused flooding in parts of Northern California on Saturday, prompting road closures and rescues of residents trapped in their cars.

Roadways through a 15-mile (24-kilometer) stretch from the Sausalito area to San Rafael were flooded after a downpour coincided with record-breaking “ King Tides,” Marin County Sheriff’s Sgt. Michael Dobbins said.

No injuries were reported but authorities were called to assist when cars got stuck in floodwater as high as three and four feet (1.1 and 1.2 meters), he said.

“There is a lot of water in the roadways,” Dobbins said, adding the tides were reportedly the highest in more than two decades. “Along with heavy rains, it just created the perfect storm for flooding on the streets.”

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Authorities in the communities near San Francisco asked residents to stay home wherever possible until waters recede. Some residents kayaked along what normally would be city streets. Others waded out in water that passed their knees.

A flood warning was in place for the San Francisco area until 2 p.m. Saturday and an advisory until 2 p.m. Sunday, according to the National Weather Service in San Francisco.

King Tides occur when the sun, moon and Earth are in alignment and the moon is in its closest position to the Earth, creating a stronger gravitational pull.





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