The Biden administration announced last week that it will be taking steps to hold for-profit college executives personally responsible for their school’s unpaid federal student debt.
The new guidance, released by the Department of Education, gives the Secretary of Education the authority to “require leaders of private colleges that fail to operate in a financially responsible way to assume personal liability for the cost of unpaid debts owed to the Department of Education.”
Essentially, this provision gives the Department the authority to hold private for-profit college leaders responsible for unpaid federal debts owed to the Department of Education if they deem the institution to be financially irresponsible, or deem that it has defrauded students.
