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 institutions also share a responsibility to ensure their students are prepared to enter repayment and understand the consequences of nonpayment,” Education Department Undersecretary Nicholas Kent said.
“Institutions cannot benefit from taxpayer dollars while ignoring the fact that a significant share of their students are not well-prepared to repay their loans. It’s time for institutions to step up or risk losing access to federal student aid.”…
Education Department Issues Warning to Colleges Over Student Loan Nonpayment Rates
