Statement from Arnold Ventures’ Kelly McManus on the U.S. Department of Education’s final regulations governing risky colleges

WASHINGTON, D.C. (Oct 24, 2023) —We applaud the U.S. Department of Education’s work to strengthen its oversight of high-risk colleges. Over the last decade, predatory colleges have been caught defrauding students, taking their federal aid dollars, and then shuttering entirely. The cost of these educational schemes is largely borne by students and taxpayers – not the colleges and their owners who bilked the federal system. These new oversight rules will be common-sense, reasonable improvements to regulators’ ability to take action when schools are teetering on the brink of collapse, lying to students, or abusing the federal financial aid system. There is more work to be done, but this is a much-needed step in the right direction.