Education Department Issues Warning to Colleges Over Student Loan Nonpayment Rates

‘It’s time for institutions to step up or risk losing access to federal student aid,’ Undersecretary of Education Nicholas Kent said.

Students study in the Perry-Castaneda Library at the University of Texas in Austin, Texas, on Feb. 22, 2024. Brandon Bell/Getty Images

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.