Education Department unveils stricter college oversight rules
Jeremy Bauer-Wolf
October 24, 2023
The regulatory package broadens the circumstances in which financially shaky colleges must offer letters of credit, among other consumer protections.
The U.S. Department of Education debuted a sweeping regulatory package Tuesday fortifying federal oversight of financially unstable colleges, including by broadening the circumstances in which they must supply the government with a letter of credit.
This mammoth new set of rules matches the Biden administration’s priority of holding accountable colleges it deems predatory or high risk for students. The regulations come as college costs soar, contributing to the federal loan portfolio swelling to $1.6 trillion.
The new rules also contain significant new consumer protections, like mandating colleges provide clear financial aid offers that break down cost of attendance and types of available assistance.
