Education Department puts pressure on colleges ahead of upcoming student loan changes
Source: The Hill
02/21/26 5:00 PM ET
The Trump administration is turning up the pressure on schools to rein in student loan default rates ahead of changes the federal government is implementing this summer that advocates worry could hurt borrowers. The Department of Education released guidance to universities this week to offer “best practices to reduce default rates” — and reminded schools that failing to meet their obligations could lead to a loss of access to federal student aid programs.
The guidance offered some transparency experts say will be useful for institutions, but it also fueled concerns the Trump administration is seeking to pin blame on universities for the high default rates after curtailing debt relief efforts.
An analysis by the Congressional Research Service last year showed more than 5 million student loan borrowers were in default and millions more were close to that threshold. A borrower is considered to have defaulted on their student loans after 270 days without a payment, leading to damage to their credit score and even potential wage garnishment.
“We know that schools are seen by their students as so-called trusted voices or trusted agents. And again, historically, we have found that the messaging can be more effective coming from a school than maybe coming from a loan servicer,” said Betsy Mayotte, president and founder of the Institute of Student Loan Advisors.
Read more: https://thehill.com/homenews/education/5748007-education-department-student-loan-borrowers-default/