Student Loan Delinquency Is Hitting Older Borrowers Hardest
Gen X borrowers had a student loan delinquency rate of 10.4 percent, compared with 9.7 percent for millennials.
Recent data highlights the growing challenge of student loan delinquencies among older borrowers. According to a 2026 Student Loan Debt Report by Credit Karma, Gen X borrowers had the highest delinquency rate at 10.4%, compared to 9.7% for millennials and 9.6% for Gen Z. The Federal Reserve Bank of New York also revealed that borrowers entering default in late 2025 or the first quarter of 2026 had an average age of 38.9, higher than the 36.4 average for those entering default before the pandemic.
Kevin Thompson, CEO of 9i Capital Group, stated that older Americans are particularly vulnerable due to existing financial obligations such as housing, healthcare, and inflation. The Federal Student Aid reported that as of June, 42.3 million borrowers owed over $1.7 trillion in federal student loans. While Gen X borrowers carry significant debt, their higher delinquency rate is attributed to their dual responsibilities, including supporting children's education, aging parents, and retirement savings.
Experts warn that the financial strain of delinquencies can have long-term impacts, including damaging credit scores, increased borrowing costs, and difficulty obtaining other forms of credit.
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