Education Department threatens to hold aid to some colleges with high loan defaults

(CNN)– The Department of Education is threatening to withhold federal aid to colleges and universities that have high levels of students in default on their student loans.

Education Secretary Linda McMahon sent a letter Monday, May 5, to colleges and universities that receive federal funding assistance.

She urged them to reach out to all former students to remind them of their financial obligations.

The letter goes on to say institutions could lose access to federal student aid if they aren’t proactive.