A congressional proposal would put colleges and universities on the hook when students fail to repay loans. Some experts say that would end up hurting the students themselves.

As the government begins reinstating students’ records, many face a daunting and complicated path toward rebuilding their lives. For those who left, there is no guarantee they can return. Others have faced challenges reenrolling in school and returning to jobs.

Small, religiously affiliated colleges in rural areas are facing declining enrollment and financial challenges, forcing many to close or merge. Some schools are attempting to avoid this fate by partnering, a strategy other struggling institutions are closely watching.