A total of 319 degree-granting private institutions have failed the Education Department’s financial-responsibility test at some point in the past three years, receiving a composite score below 1.5.
Notes: All private colleges that award federal student aid must participate in the Department of Education’s financial-responsibility test, which is based on information from their audited financial statements. The department develops a composite score on a scale of 3.0 to minus 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. In addition to extra monitoring for all institutions that “fail,” those with scores below 1.0 are required to post a letter of credit with the department equal to 10 percent of the federal student aid that goes to their students annually. For institutional fiscal years ending between July 1 and June 30. Institutions without a score provided for the selected time periods are indicated as N/A.
We’re sorry. Something went wrong.
We are unable to fully display the content of this page.
The most likely cause of this is a content blocker on your computer or network. Please make sure your computer, VPN, or network allows javascript and allows content to be delivered from c950.chronicle.com and chronicle.blueconic.net.
Once javascript and access to those URLs are allowed, please refresh this page. You may then be asked to log in, create an account if you don't already have one, or subscribe.
If you continue to experience issues, contact us at 202-466-1032 or help@chronicle.com
