ScholarNet Urges Financial Aid Offices to Act Now as Default Risk Climbs

Portfolio Navigator Gives Schools a Fast, Data-Driven Way to Reach At-Risk Borrowers.

LINCOLN, Neb., June 22, 2026 /PRNewswire/ -- ScholarNet, the private student loan processing and portfolio management platform serving hundreds of institutions nationwide, is urging financial aid offices to act now. New federal data points to a sharp rise in Cohort Default Rate (CDR) risk heading into fiscal year 2026.

In February 2026, the Department of Education reported that more than 1,800 institutions now have nonpayment rates of at least 25% — a level the Department calls a direct warning sign for CDR risk and possible loss of Title IV eligibility.

Why Default Risk Is Rising

Several pressures are converging at once. Five years of pandemic-era payment pauses hid repayment problems that are now surfacing as those borrowers enter the CDR window. At the same time, the end of the Saving on a Valuable Education (SAVE) Plan has left millions of borrowers in transition.

The new Repayment Assistance Plan (RAP) is expected to open July 1, 2026. That transition creates a narrow, time-sensitive window to reach borrowers, guide them back into repayment, and head off delinquency and default before it counts against the school.

Portfolio Navigator: Built for This Moment

Portfolio Navigator pulls National Student Loan Data System (NSLDS) data into a single dashboard, sorts borrowers by delinquency stage, and runs targeted outreach by email, letter, and phone. A financial aid office can complete a full outreach cycle in under an hour a month.

"The CDR environment has fundamentally changed, and the data is clear: institutions need to act now, not in September when official rates come out," said Mike Mutziger, Vice President of Sales and Marketing at ScholarNet. "Financial aid professionals know what's at stake. They need a practical, scalable tool to reach at-risk borrowers efficiently. That's exactly what Portfolio Navigator does."

For schools already using ScholarNet, Portfolio Navigator is complimentary — no added vendor fees and no separate contract.

Real Results: Lindsey Wilson University

Lindsey Wilson University, a Kentucky liberal arts school, turned to Portfolio Navigator as post-pandemic repayment challenges pushed its CDR risk higher. Director of Financial Aid Audrey Price moved her team from reactive default response to proactive intervention — and the results came fast. The school's CDR risk factor fell from nearly 27% to 8% for the 2025 cohort.

"Portfolio Navigator has been a game changer," Price said. "We're not just processing aid anymore — we're helping students succeed."

The Clock Is Ticking — Act Before September

Official FY 2023 CDRs will be released in September 2026. With RAP enrollment expected to open July 1, schools have an opportunity to reach borrowers before transition confusion turns into delinquency.

ScholarNet will be at the National Association of Student Financial Aid Administrators (NASFAA) 2026 National Conference (June 29 to July 2, National Harbor, Md.) to demonstrate Portfolio Navigator and talk through CDR management strategies with financial aid professionals.

About ScholarNet

ScholarNet is a lender-neutral platform for private student loan certification, disbursement, and portfolio management, connecting hundreds of institutions with private loan providers nationwide. Its Portfolio Navigator tool helps schools proactively manage federal loan portfolios and Cohort Default Rates through NSLDS-powered borrower outreach. ScholarNet is part of Nelnet, a diversified education services company. Learn more at myscholarnet.com.

SOURCE ScholarNet