Federal Data Flags 500 Colleges’ Loan Nonpayment

Federal data shows that at 500 U.S. colleges, at least 40% of recent borrowers are not repaying their student loans, based on roughly 17 million borrowers who entered repayment between January 2020 and May 2025. The highest rates are concentrated among private, for-profit institutions that often enroll low-income students, depend heavily on federal aid and face criticism for charging substantial tuition for programs that may not improve graduates’ earnings. Borrowers such as Lisa Collenbaugh, who owes more than $10,000 after leaving UEI College’s computer-training program, illustrate the personal and financial consequences. Analysts attribute the problem partly to pandemic-related disruptions and partly to inadequate oversight and poor program value, raising concerns for both borrowers and taxpayers. The Education Department is moving toward real-time nonpayment measures that could bring stricter accountability and financial consequences for underperforming schools, while nonprofit and state-based organizations provide scholarships, savings programs, affordable loans and loan servicing that help offset gaps in the federal system.