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Colleges Face Aid Cuts Over Rising Student Loan Defaults

2/19/2026

Summary

Story summary

Under U.S. President Donald Trump, U.S. Education Secretary Linda McMahon announced on February 19, 2026, that colleges must strengthen efforts to ensure graduates repay federal student loans.
The Department of Education issued guidance urging institutions to lower delinquency and default rates.
Colleges with high default rates risk losing federal aid eligibility; over 1,800 schools exceed 25%.
Consumer advocates say recent policies and staff cuts have harmed borrowers.

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Story summary

Under U.S. President Donald Trump, U.S. Education Secretary Linda McMahon announced on February 19, 2026, that colleges must strengthen efforts to ensure graduates repay federal student loans.
The Department of Education issued guidance urging institutions to lower delinquency and default rates.
Colleges with high default rates risk losing federal aid eligibility; over 1,800 schools exceed 25%.
Consumer advocates say recent policies and staff cuts have harmed borrowers.