Education Department Issues Warning to Colleges Over Student Loan Nonpayment Rates

Education Department Issues Warning to Colleges Over Student Loan Nonpayment Rates

The Education Department issued guidance on Feb. 18 urging colleges to implement practices to reduce student loan delinquency and default rates or risk losing access to federal student aid. In a statement, the department cited new data showing that more than 1,800 colleges, universities, and other higher education institutions have loan nonpayment rates of 25 percent or more. “Student borrowers have an obligation to repay their loans, but instit…

U.S. Education Department Urges Colleges to Strengthen Student Loan Default Prevention

WASHINGTON, D.C. — The U.S. Department of Education on Tuesday issued new guidance urging colleges and universities to strengthen efforts aimed at reducing federal student loan defaults. The guidance reminds institutions of higher education of their shared responsibility under Title IV of the Higher Education Act to support borrowers throughout the repayment process. It follows earlier guidance issued May 5, 2025, that encouraged institutions to…