Center for American Progress

RELEASE: The Coronavirus Is No Excuse To Abandon Financial Accountability for Private Colleges
Press Release

RELEASE: The Coronavirus Is No Excuse To Abandon Financial Accountability for Private Colleges

Washington, D.C. — In March of this year, citing the extraordinary upheaval caused by the coronavirus pandemic, the trade group representing America’s private colleges called for the U.S. Department of Education to waive financial accountability rules that these schools are subject to for three years. Without these safeguards in place, students could see their schools close due to financial mismanagement, and taxpayers could be forced to foot the bill for canceling loans for students whose schools close. Today, the Center for American Progress released a new column outlining alternative strategies that lawmakers should consider in the short-term to increase the efficacy of financial monitoring.

As the piece notes, the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act’s institution stabilization program’s contingency requirements for schools with insufficient liquidity include some good ideas, including requiring schools to have a plan in the event of school closure and to submit a teach-out agreement, as well as increased reporting on liquidity and enrollment. Rightfully, the program bars for-profit colleges, which have a history of poor student outcomes and financial mismanagement, from receiving additional flexibility.

Please click here to read: “The Coronavirus Pandemic Isn’t the Time To Abandon Financial Accountability for Private Colleges” by Ben Miller

For more information or to speak with an expert, please contact Colin Seeberger at cseeberger@americanprogress.org.