News From Default Risk to Student Success: Rethinking Repayment Support at Community Colleges New data show repayment distress is surging. Institutions that act early can turn a liability into a long-term success strategy. Repayment has returned, and community colleges are feeling the impact. As of mid-2025, more than 18 million borrowers are in active federal student loan repayment, and the transition has been anything but smooth: the Federal Reserve Bank of New York reports that 12.9% of all student loan debt is seriously delinquent (90+ days late) – the highest level in more than two decades. Among borrowers required to make payments, nearly one in four fell behind in early 2025. Why Community Colleges Are at Higher Risk With the mission of serving large numbers of first-generation, Pell-eligible, and part-time students, community college student populations are disproportionately vulnerable to financial stress. The most recent federal Cohort Default Rate (CDR) data confirms this risk: Borrowers at public two- and three-year colleges defaulted at an average rate of 15.2%. At less-than-two-year institutions, the default rate averaged 13.1%. These figures far outpace defaults at four-year institutions and highlight the urgent need for targeted repayment support in the community college sector. That’s where proactive support makes the difference. The Case for Early Intervention Community college students often juggle work, family, and financial obligations. Without clear guidance, many feel overwhelmed or simply disengage from their loans. A 2024 Trellis survey found that nearly 60% of struggling borrowers had not spoken to their servicer or school since repayment began again, often because they were embarrassed, confused, or unsure where to turn. A Partner in Proactive Repayment Support Community colleges don’t have to carry this burden alone. Inceptia partners with institutions to provide timely, tailored outreach during the most critical repayment windows – before repayment begins and when they have slipped into delinquency. Early, personalized counseling works. Schools that have used Repayment Counseling Outreach have seen: An 83% average resolution rate 92% of the resolutions consisting of a warm transfer to the servicer Unlimited borrower consulting time To help borrowers before their first payment is due, Grace Counseling Outreach offers: Up to a 50% decrease in delinquency Greater borrower confidence and engagement Fewer defaults, escalations, and loan rehabilitation cases By serving as a bridge between students, institutions, and servicers, Inceptia helps borrowers navigate repayment options with empathy and clarity. For colleges, this means reduced default risk, preserved federal aid eligibility, and stronger student retention. Change Moments into Movement Repayment challenges aren’t going away. For schools committed to access and success, proactive counseling is no longer optional – it’s essential. With the right support, institutions can protect their students’ financial futures while strengthening their own compliance and reputational standing. If you’re rethinking how your institution supports borrowers through repayment, we’d be glad to share what’s working and how others are scaling their efforts. Visit Inceptia.com or connect directly with one of our business development representatives.