The week of April 24, 2026 brought several developments that matter to borrowers, families and anyone watching higher education finances. Federal regulators moved against a large-scale debt relief operation, state lawmakers rejected a plan that would have shifted scholarship money into potential debt, and fresh analyses laid out how fragile many small colleges have become. Together these stories underscore rising risks for students and institutions as repayment programs change and enrollment patterns continue to shift.
The actions and research summarized below include a Federal Trade Commission enforcement action, a Louisiana House vote on the TOPS scholarship, a Huron Consulting Group projection of vulnerable private colleges, and a working paper from the National Bureau of Economic Research. Each item has practical implications: for how you respond to unsolicited calls, how families weigh financial aid offers, and how communities plan for the future of local colleges.
Table of Contents:
FTC halts an alleged $8.8 million student loan forgery scheme
Federal authorities secured a temporary restraining order in the Central District of California on April 13 to stop an operation accused of stealing at least $8.8 million from borrowers through deceptive offers of loan relief. The complaint names companies operating as NERD Solutions Inc. and ED REF Inc., and alleges cold calls that impersonated the Department of Education or legitimate loan servicers, targeting even numbers on the National Do Not Call Registry. The defendants reportedly charged upfront monthly fees — sometimes as much as $1,400 — for promised fast-track forgiveness that never materialized. The FTC used its recently finalized Government and Business Impersonation Rule in this action and froze assets while litigation proceeds.
Policy spotlight: Louisiana rejects a controversial TOPS repayment proposal
On April 21, the Louisiana House defeated House Bill 385 by a 38–62 vote, killing a proposal that would have required students to repay TOPS scholarship funds if they lost eligibility after high school. Critics warned the measure could convert a merit aid program into a de facto loan, because a single poor semester or a GPA dip could trigger repayment. TOPS represents more than $320 million in annual state investment; supporters of the bill framed it as taxpayer accountability, while opponents argued it would add financial risk for families who rely on the scholarship to attend college.
Why this matters to families
For students and parents the takeaway is clear: scholarship terms and state policy can materially change the financial calculus of attending college. When evaluating offers, look beyond the sticker price to program rules and risk of retroactive obligations. If a state program imposes repay-on-default conditions, the protective value of the scholarship erodes and families must assess contingency plans.
Financial health of small colleges: 442 institutions at risk
A Huron Consulting Group analysis projects that 442 of about 1,700 private nonprofit four-year colleges could face closure or forced consolidation within the next decade, with more than 120 at highest risk. Metrics driving the projection include enrollment trajectories, tuition revenue, endowment size and cash reserves relative to operating costs. Many at-risk institutions are small, rural colleges that serve local communities; closures can leave students with interrupted educations and communities without critical workforce pipelines. Recent campus wind-downs such as Hampshire College and Sterling College illustrate these dangers in concrete terms.
Practical checks before you enroll
Families deciding on a college should investigate an institution’s enrollment trendline, recent program or staff cuts, accreditation standing and the ratio of endowment to annual operating budget. The cost of selecting a school that closes before graduation goes beyond tuition: lost credits, relocation expenses and delayed degree completion all compound the impact. When possible, ask admissions and financial offices about contingency plans for students if operations change.
Research: pandemic remote learning still depresses college access
A working paper from the NBER analyzed data from more than 14,000 public high schools and found that schools that shifted to virtual instruction in 2026–21 experienced meaningful drops in college-going signals: FAFSA submissions fell by 4.2%, first-year enrollment fell by 2.5%, and ACT participation declined by 4.8%. The effects were roughly three times larger at high-poverty schools, a gap researchers attribute to lost in-person support from counselors who help students with the Free Application for Federal Student Aid and admissions guidance. National test-taking has not recovered to pre-pandemic levels — in 2026, 1.38 million students took the ACT versus 1.78 million in 2019.
That research highlights the importance of proactive outreach: parents and students should not wait for school counselors to start conversations about financial aid and applications. Use resources such as StudentAid.gov, state higher education agencies and local nonprofits to navigate aid options like income-driven repayment plans, Public Service Loan Forgiveness, or targeted discharges. And when you receive unexpected calls about your loans, remember that legitimate federal programs are free to apply for through official channels and reputable help will not demand advance fees.
