The Department of Education announced plans to hold owners of private colleges personally liable for student loan debts left unpaid to the federal government, two days after advocating for student loan debt forgiveness before the U.S. Supreme Court, YahooFinance.com reported. In guidance published Thursday, the Education Department said that, in some cases, it will block certain schools from participating in federal financial aid programs unless those who own the schools put their personal finances on the line. Going forward, the administration said, the Education Department will decide on a case-by-case basis whether to require college leaders to assume personal liability. Those decisions will be made either when an institution’s program participation agreement is up for renewal or when it undergoes a change in ownership. The department said that it will require leaders that “fail to operate in a financially responsible way” to assume personal liability for unpaid federal student loan debts.
