The Department of Education is expanding support for colleges working to reduce student loan delinquency and default as institutions prepare for the return of more meaningful cohort default rates.
In a September 2 Dear Colleague Letter, Federal Student Aid announced a new default prevention initiative that will include webinars, workshops, conference sessions, and individualized support for institutions. The effort is intended both to improve borrower repayment outcomes and help schools maintain Title IV eligibility.
Earlier this year, ED encouraged institutions with elevated nonpayment rates to review and strengthen their default management and prevention plans before official CDRs rise. The Department urged schools to analyze borrower data, improve outreach, strengthen repayment communications, and involve campus leadership beyond the financial aid office.
FSA’s new initiative will begin with two webinars.
The first, “Default Prevention: NSLDS Reporting Tools,” will be held September 29 from 1:15–2:15 p.m. ET and will cover the Delinquent Borrower Report, 24/36 Month Repayment Report, Loan Record Detail Report, and draft CDR calculations.
A second webinar, “Default Prevention: Institutional Strategies for Success,” will take place October 13 from 1:15–2:15 p.m. ET and is geared toward campus leaders, with a focus on borrower communications, institutional operations, and repayment support. FSA has also released a self-paced learning track on cohort default rates and default prevention.
ED’s efforts came shortly after the release of one encouraging signal in the latest round of consumer-credit data.
The New York Fed reported that the annualized share of student loan balances newly transitioning into serious delinquency fell from 12.88 percent in the second quarter of 2025 to 7.83 percent in the second quarter of 2026.
The Fed cautions that student loan delinquency measures continue to be affected by the re-reporting of previously defaulted debt, so the numbers require care. Still, the direction is more encouraging than the sharp deterioration seen when federal repayment and credit reporting resumed.
Comments are closed