Newbury College, a Massachusetts school that shuttered in 2019, is currently pursuing collection lawsuits in Boston Municipal Court against 21 former students. Among them is Cesarina Barros, who owes $28,000 largely due to interest on an original $10,000 balance left unpaid since 2009. A judge recently postponed Barros's proceedings until January because the college's attorney could not specify where the collected funds would actually be directed. Although Wheaton College was named recipient of the defunct school's remaining assets in 2022, Wheaton stated it never acquired these student accounts.
Key points
Closed educational institutions pursuing former students for decades-old debts can trigge…: Closed educational institutions pursuing former students for decades-old debts can trigger severe collection actions like wage garnishment.
Ambiguity regarding the legal transfer of a defunct school's student accounts can disrupt…: Ambiguity regarding the legal transfer of a defunct school's student accounts can disrupt and delay courtroom collection proceedings.
Borrowers remain exposed to mounting interest charges and administrative fees even years…: Borrowers remain exposed to mounting interest charges and administrative fees even years after an academic institution ceases operations.
Sources checked by our analysis pipeline: 1
Newbury College in Massachusetts shut its doors in 2019 and ceased operating as a nonprofit organisation in 2022. However, its closure did not bring an end to its financial dealings with former students. In the summer of 2025, former student Cesarina Barros was sued for $28,000 in unpaid tuition and interest, raising questions about who collects outstanding fees when a college ceases to exist.
According to a report by WGBH, Barros left Newbury College in 2009 because she could no longer afford her education. At the time, she owed approximately $10,000 in tuition but continued making payments towards the outstanding amount. When the institution eventually closed, she believed she would no longer have to worry about the debt.
That changed when she received notice of the lawsuit in 2025. Barros, who now works as a registration specialist for Boston Public Schools, is among 21 former students facing collection proceedings over unpaid tuition balances. Court documents filed in Boston Municipal Court also indicate that former students have been threatened with wage garnishment.
Where does the money collected from former students go?
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