Senate Democrats Want For-Profit Leaders Held Liable
October 19, 2022
Several Democratic senators want the U.S. Department of Education to hold for-profit college executives personally liable for student loans discharged because of an institution’s misconduct.
“Despite the Department repeatedly finding that fraudulent for-profit colleges widely mislead [sic] students and misrepresented their costs, ability to transfer credits, and earning potential, their executives continue to take home huge profits,” the lawmakers wrote in a letter to Education Secretary Miguel Cardona. “Too often, students are left saddled with debt and no career path while the executives at these institutions prioritize profits over student outcomes.”
Senators Dick Durbin and Elizabeth Warren, along with several others—all Democrats—sent the letter. They requested an accounting of the government’s losses in connection with approved borrower-defense claims for students at Corinthian Colleges, ITT Technical Institute and several other for-profit institutions, along with the total amount recovered from an individual executive, owner or board member and answers to four other questions. That report is requested by Nov. 1.