Closed College Debts Follow Former Students
Former students of closed colleges may still owe old tuition balances, which can lead to lawsuits and wage garnishment.
Updated on Nov. 5, 2026 in Financial Aid
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Newbury College, a Massachusetts school that shut down in 2019, has sued former student Cesarina Barros for $28,000 in back tuition and interest, and documents show she and 20 other former students have been threatened with wage garnishment.
Why it matters
The case shows that a former student's unpaid balance can outlive a closed school and follow borrowers years later, even after they have kept paying. It also raises the question of who is responsible for old student accounts when a college's assets pass to another institution.
Barros's original balance was $10,000 when she left Newbury College in 2009, and the lawsuit now seeks $28,000 in back tuition and interest. Wheaton College's inherited scholarship fund totals $4 million and has supported seven students.
The players
Newbury College
A Massachusetts private college that closed its operations in 2019 and whose unpaid student balances are now being pursued in court.
Wheaton College
A Massachusetts college designated in 2022 to legally inherit Newbury College's assets and funds, which it says did not include student accounts.
The details
Newbury College stopped operating in 2019 and ceased to function as a nonprofit in 2022, when Massachusetts' highest court and the state attorney general's office designated Wheaton College to legally inherit its assets and funds. Wheaton has said it did not acquire student accounts or outstanding balances, yet collection filings list addresses for both Wheaton and Newbury. Documents filed in Boston Municipal Court show threats of wage garnishment against Barros and 20 other former students, and the case has been postponed until January.
Timeline
2009: Barros leaves Newbury College because she cannot afford tuition.
2019: Newbury College shuts down operations.
2022: Newbury ceases to operate as a nonprofit and Wheaton College is designated to inherit its assets.
Summer 2025: Newbury College sues Barros for $28,000 in back tuition and interest.
January: The court case is postponed until this date.
Education Landscape
Closed-college cases like Newbury's raise questions about what happens to student debt when schools fold. This case sits alongside broader concerns about rising college costs and the long tail of student borrowing.
If you attended a college that later closed, ask the school's successor or the state attorney general's office whether your student account transferred and what balance, if any, is still owed. Check any collection notices against your own payment records before responding.
The takeaway
A closed college's debts do not automatically disappear or transfer with its assets, so former students should keep payment records and confirm with the successor institution whether their account was taken over. Ask the school's financial-aid office or a qualified adviser about your options if you receive a collection notice.
Further reading
For context on how aid and tuition debts work, explore our Financial Aid coverage.
Source note: This article includes information reported by The Cool Down.
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Should former students still have to repay tuition owed to a college that closed?
