Education Dept. Tells Colleges to Help Struggling Borrowers

Education Dept. Tells Colleges to Help Struggling Borrowers

The guidance, released Monday, reminds colleges of their responsibility to ensure borrowers repay loans to the best of their ability. The Department of Education reminded colleges and universities Monday of their role in ensuring student loan borrowers repay their debt—and that they’ll be on the hook if a large percentage of their former students default on their debts.

On Monday (May 5), the U.S. Department of Education issued a guidance reminding colleges and universities to fulfill their obligations to support student loan borrowers and pointed out that those universities with excessively high loan default rates will be restricted from obtaining federal student loan eligibility.