Colleges are navigating enrollment pressures, renewed federal oversight, and growing scrutiny around how families finance higher education. This week’s developments highlight stress points across the higher education system: from declining international enrollment to concerns about how some institutions are pushing families toward costly borrowing options.

Here’s a quick look at the most important stories shaping higher education and student finances this week for February 20, 2026.

Headlines at a Glance

• International enrollment pressures continue to strain campus budgets.
• The Education Department urges colleges to help prevent loan defaults.
• Planning begins for the 2027–28 FAFSA cycle.
• New report finds some colleges may be steering families toward Parent PLUS loans.

1. International Enrollment Pressure Continues

U.S. colleges are reporting ongoing challenges in attracting international students amid tighter visa policies and stronger global competition. Institutions that once relied on international tuition revenue are seeing declines, particularly at research universities and mid-tier private schools.

Because international students often pay full tuition, even modest enrollment dips can create meaningful budget gaps.

Impact: Reduced international enrollment can translate into hiring freezes, reduced campus services, or future tuition adjustments that affect all students.

2. Department of Education Urges Colleges To Help Reduce Student Loan Defaults

The U.S. Department of Education issued guidance reminding colleges of their responsibility to support borrowers under Title IV programs. Officials emphasized proactive outreach, repayment counseling, and improved borrower communication to help prevent student loan defaults.

Institutions with high default rates risk sanctions or loss of federal aid eligibility.

Impact: Defaults damage credit scores and limit financial mobility. Increased institutional accountability could push colleges to invest more in financial literacy and repayment support.

3. Development Begins For The 2027-28 FAFSA

The Education Department also announced early steps toward developing the 2027–28 FAFSA form, launching a new information collection process aimed at improving data gathering and application timing.

The move suggests continued efforts to stabilize and refine the FAFSA process following recent overhauls and delays.

Impact: Earlier FAFSA development could lead to earlier award notifications and better financial planning for families, especially those relying on need-based aid.

4. Report Raises Concerns About Colleges Steering Families To Parent PLUS Loans

A new analysis found that some colleges may be directing low-income families toward Parent PLUS loans, even when less costly federal student loan options are available. Parent PLUS loans often carry higher interest rates and fewer repayment protections compared with standard undergraduate federal loans. Some of these schools even advertised themselves as no loan colleges.

The report raises concerns that families may be assuming long-term debt burdens without fully understanding alternatives.

Impact: Parent PLUS loans can significantly affect household finances for years. Families should review all borrowing options carefully before committing.