Education department urges colleges to strengthen default prevention plans amid rising defaults

On February 18, the U.S. Department of Education announced new guidance urging higher education institutions to update and maintain default management and prevention plans in response to rising nonpayment rates among federal student loan borrowers. The department cited updated data showing that more than 1,800 institutions had nonpayment rates at or above 25 percent for borrowers entering repayment between January 2020 and May 2025.... By: Orrick, Herrington & Sutcliffe LLP