Student loan scammers are getting bolder and federal regulators are cracking down on them. This week, the FTC shut down an $8.8 million operation that impersonated the Department of Education to trick borrowers into paying into fake loan forgiveness programs.
Meanwhile, Louisiana lawmakers rejected a controversial proposal that would have turned the state’s merit scholarships into a potential debt trap, and new data paint a grim picture of the financial pressures facing higher education — from an estimate that more than 400 private colleges could close within the next decade to research confirming that the pandemic’s damage to college enrollment is still being felt years later.
A quick look at the most important stories shaping higher education and student finance this week for April 24, 2026.
🎓 Top news at a glance
- The FTC shuts down an $8.8 million student loan forgiveness scam that involved Department of Education duplicity.
- Louisiana lawmakers rejected a bill that would have required students to repay TOPS scholarships.
- A new estimate shows that 442 private colleges are at risk of closing or merging within the next decade.
- NBER research confirms that COVID-era remote learning is still reducing college enrollment — especially at low-income schools.
1. FTC shuts down $8.8 million student loan forgiveness scam
The Federal Trade Commission obtained a temporary ban The order to stop a California-based student loan scam that allegedly collected $8.8 million from borrowers starting in 2022.
The FTC’s complaint alleges that NERD Solutions Inc. and ED REF Inc. called thousands of borrowers (including many on the National Do Not Call Registry) and falsely claimed to be affiliated with the U.S. Department of Education or the borrowers’ actual loan servicers. The operation promised fast-track loan forgiveness and charged upfront monthly fees of up to $1,400 for services that were never completed.
This case is notable as one of the first major enforcement actions using the FTC’s newly finalized government and business impersonation rule. A federal court in the Central District of California issued a restraining order on April 13, freezing the defendants’ assets while the case continues.
➡️ Effect: The confusion surrounding student loan repayment changes (including the end of the SAVE scheme, the new RAP transition and transfer deadlines) has created fertile ground for student loan scammers.
The FTC’s message is clear: Applying for legitimate student loan programs is free studentaid.govAnd no company should ever charge you an upfront fee for help with your federal student loans. If you get an unsolicited call about your student loans, hang up.
2. Louisiana rejects proposal to require students to repay TOPS scholarship
The Louisiana House of Representatives on April 21 rejected House Bill 385 by a decisive 38–62 margin, rejecting a proposal that would have required students to repay their TOPS scholarship money if they lose eligibility.
The bill would apply to students graduating high school during or after the 2025-2026 school year. Students can lose TOPS eligibility for a number of reasons, including failing to maintain the minimum GPA or falling below a 2.0 in any one semester. Under the proposal, even one bad semester could give rise to a repayment obligation.
TOPS is one of the largest state-funded merit scholarship programs in the country, investing more than $320 million annually. Supporters argued for greater taxpayer accountability, but critics warned that the bill would effectively turn merit scholarships into debt traps.
➡️ Effect: This is good news for Louisiana families. This bill would have added financial risk to a program designed to reduce it. No other state requires students to repay merit scholarship money earned in high school, and Louisiana would not be the first. College Investor covered this bill when it passed out of committee – this vote officially kills it.
3. New estimate: 442 private colleges at risk of closure within a decade
A new analysis from Huron Consulting Group Projects Of the nation’s 1,700 private, nonprofit four-year colleges and universities, 442 (enrolling a total of 670,000 students) are at risk of closing or being forced to close or merge within the next 10 years. Of these, more than 120 institutions are most at risk.
This estimate is based on enrollment trends, tuition revenue, assets, debt levels and cash reserves. Many at-risk schools are small and rural – institutions that often serve as the only nearby options for students in their communities.
The report comes just weeks after Hampshire College announced its permanent closure and Sterling College in Vermont announced it was starting its final semester. According to a study by the Association of State Higher Education Executives, less than half of the students from colleges that close go on to continue their education at another institution. Of those who re-enroll, less than half ultimately earn a degree.
➡️ Effect: Financial health matters for families evaluating colleges (especially smaller private institutions). Before committing, look at an institution’s enrollment trends, accreditation status, the size of its endowment relative to its operating budget, and whether it has recently made significant staff or program cuts. The cost of choosing a school that closes before you graduate is far greater than the lost tuition.
4. NBER study: COVID remote learning still dragging down college enrollment
A new working paper from National Bureau of Economic Research confirms Many in higher education are skeptical: Pandemic-era remote learning is shrinking the pipeline of college-bound students.
The study, which analyzed data from more than 14,000 public high schools, found that when schools shifted to virtual learning during the 2020-21 school year, FAFSA submission rates dropped by 4.2% and first-year college enrollment dropped by 2.5%. ACT test taking rates dropped by 4.8%. The effect was three times greater in high-poverty schools.
Researchers attribute this gap to a lack of personal guidance from school counselors, who play a major role in helping students complete financial aid forms and navigate the college application process — especially for first-generation students.
Both the SAT and ACT are still struggling to recover pre-pandemic participation levels. In 2025, 1.38 million students took the ACT, compared to 1.78 million students in 2019, a difference of 400,000 test takers.
➡️ Effect: This research reinforces how important school-based support is in getting students to and from college. If you’re a parent of a high school student, don’t wait for the school to bring out the FAFSA or college application – start the conversation early.
And if your student attends a school without a dedicated college counselor, resources like studentAid.gov, your state’s higher education agency, and local nonprofits can help fill the gap.
