More college owners could be ‘on the hook’ for repayment under new education dept. policy

From The Chronicle of Higher Education: “The Education Department announced a new policy … that it says will help protect taxpayers from the heavy cost of loan forgiveness when colleges either shut down or are found to have misled or defrauded students. In certain circumstances, the department will begin requiring additional signatures on the agreement that private colleges must submit in order to qualify for Pell Grants and federal student loans. In addition to the institution itself signing the program participation agreement, the department will now ask for signatures from any organization or entity with at least a 50-percent ownership interest. And all of the parties that sign the document could be held liable for the cost of student-loan forgiveness if problems occur.”

View the full article from The Chronicle of Higher Education. [Subscription required.]

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