The Education Department cast Tuesday’s announcement as a shot across the bow at irresponsible postsecondary providers.
“Schools that engage in bad behavior or that suddenly close their doors, leaving students out in the cold, will be held accountable, and we expect other schools to pay attention to the actions we are taking today,” FSA Chief Operating Officer Richard Cordray said in a statement.
The move comes after the department took several other actions to change the direction of parts of the government’s student loan apparatus. Last week, it announced plans to rewrite regulations covering a number of student loan-related issues, including Public Service Loan forgiveness, income-contingent repayment plans, borrower defense to repayment and closed-school loan discharges.
