On February 18, 2026, Federal Student Aid (FSA) issued Electronic Announcement GENERAL-26-12. Building on guidance from May and July 2025, the announcement reinforces the Department’s expectation that institutions proactively engage their students and former students on Direct Loan repayment.
The announcement comes as the performance of Direct Loans continues to sputter. Estimates indicate there are currently 6-8 million Direct Loan borrowers in default and the numbers continue to grow.
The Department also published updated institutional “nonpayment rates,” providing a current look at delinquency trends that will likely influence future official Cohort Default Rates (CDRs). The data shows that over 1,800 institutions have nonpayment rates at or exceeding 25%. The full dataset is available here.
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