Education Department shares plans to make for-profit executives responsible for colleges’ liabilities
Rick Seltzer
March 2, 2023
Officials describe new guidance as protecting taxpayer dollars and heading off risky behavior, but for-profits argue the move will limit student choice.
The Biden administration is seeking more leverage over owners and leaders of colleges it considers risky, unveiling a new set of conditions it will use to hold individuals personally liable when private institutions cost the government money.
New guidance issued this week outlines how the U.S. Department of Education plans to require private college leaders to assume personal liability for unpaid debts institutions owe to the government when their institutions “fail to operate in a financially responsible way.” That means the government could try to claw back money from individuals for certain colleges’ financial aid liabilities.
