The U.S. Department of Education debuted a sweeping regulatory package Tuesday fortifying federal oversight of financially unstable colleges, including by broadening the circumstances in which they must supply the government with a letter of credit. This mammoth new set of rules matches the Biden administration’s priority of holding accountable colleges it deems predatory or high risk for students. The regulations come as college costs soar, contributing to the federal loan portfolio swelling to $1.6 trillion. The new rules also contain significant new consumer protections, like mandating colleges provide clear financial aid offers that break down cost of attendance and types of available assistance.
