In order to unlock federal aid, colleges sign a program participation agreement with the government pledging to follow the Higher Education Act and maintain their financial health.
Typically, a chief executive or other designated college official gives their signature on these agreements. However, in some scenarios the Education Department is now also demanding signatures from corporations or entities that control some private colleges.
The department specifically said it might require signatures from entities that are sole members or hold all voting interest in an institution, as well as entities that hold 50% or more interest in an institution.
