Decker College, a proprietary institution in Kentucky that went bankrupt last year, faces at least $55-million in claims from hundreds of creditors, the Associated Press reported today. That amount includes a $32-million claim from the U.S. Education Department, which accused Decker of a host of fraudulent actions related to its receipt of federal student aid. The department’s decision to begin restricting aid funds (The Chronicle, August 26, 2005) prompted a cash crunch last year that led to its closure (The Chronicle, October 24, 2005).

The college’s bankruptcy has drawn particular attention to William F. Weld, the former Massachusetts governor and current candidate for governor of New York. Mr. Weld, who was Decker’s chief executive before resigning to run for governor, is also a Decker creditor.