The U.S. Department of Education issued formal guidance this week warning hundreds of institutions with low federal student-loan repayment rates that they must tighten oversight or risk losing eligibility for federal aid. The guidance shifts responsibility from financial-aid offices to institutional leadership, naming college chief executives and trustees as accountable parties. CNBC reported the notice as part of a broader enforcement push from the Trump administration to hold colleges to repayment and default metrics. Institutions flagged face potential fiscal and reputational consequences: federal-aid loss can sharply reduce enrollment and revenue. The department’s move will force colleges to expand borrower-outreach, strengthen disclosure practices and reassess program-level outcomes. Higher-education leaders should expect closer federal monitoring and potential eligibility reviews tied to loan-performance benchmarks.