Who Has to Sign that Program Participation Agreement?
Farnaz Farkish Thompson, Partner, McGuireWoods LLP
Jack White, Partner, McGuireWoods LLP
In March 2022, Federal Student Aid (FSA) issued an electronic announcement about holding ownership entities jointly and severally liable for the performance of a private institution of higher education. Then in March 2023, FSA unveiled its electronic announcement about holding individual owners of corporations, CEOs, or board members personally liable for the performance of the institution in certain circumstances. This session covers when FSA has statutory authority to require personal guarantees from individuals and whether FSA has authority to enforce its electronic announcement regarding individual liability. Finally, this session covers arguments for individual owners and ownership entities to make to preclude a signature on a program participation agreement to assume joint and several liability for the institution.