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College Financial-Responsibility Scores, 2011 Fiscal Year

July 23, 2013

The U.S. Department of Education has released data for the 2011 fiscal year that identify 153 degree-granting institutions as failing its financial-responsibility test. All private colleges that award federal student aid must participate in the test, which is based on information from their audited financial statements. The department develops a composite score on a scale of positive 3.0 to negative 1.0, based on financial ratios that measure factors such as net worth, operating losses, and the relationship of assets to liabilities. Institutions with scores of 1.5 to 3 pass. Those below those scores are subject to additional oversight and, in some cases, must post letters of credit. Use the table below to see how all 1,920 degree-granting institutions included in the analysis fared. For more, see “More Than 150 Private Colleges Flunked Financial-Health Test in 2011, U.S. Says.”

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The U.S. Department of Education has released data for the 2011 fiscal year that identify 153 degree-granting institutions as failing its financial-responsibility test. All private colleges that award federal student aid must participate in the test, which is based on information from their audited financial statements. The department develops a composite score on a scale of positive 3.0 to negative 1.0, based on financial ratios that measure factors such as net worth, operating losses, and the relationship of assets to liabilities. Institutions with scores of 1.5 to 3 pass. Those below those scores are subject to additional oversight and, in some cases, must post letters of credit. Use the table below to see how all 1,920 degree-granting institutions included in the analysis fared. For more, see “More Than 150 Private Colleges Flunked Financial-Health Test in 2011, U.S. Says.”

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SOURCE: U.S. Department of Education

Correction: Because of an error in data from the Education Department, the California College of the Arts was omitted from the original version of this table. It has since been added.

Update (3/20/2014, 4:56 p.m.): Based on new data from the Education Department, this table has been modified since its initial publication, including the removal of Arizona College of Allied Health.

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