Degree-Granting Institutions With Low Financial-Responsibility Scores in 2009-10

This just in from the Chronicle of Higher Education:

"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 being subject to extra monitoring, 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."

A review of the list of institutions is very interesting, indeed.

 

Since no one has commented, here is the list in plain sight. I had it hyperlinked to "list of institutions" in my original post. Interestingly, only about 30 out of 180 are "private-for profit." The list of "private for-profit" schools is very interesting to note - you can sort by this category.

Interactive Chart: Degree-Granting Institutions With Low Financial-Responsibility Scores in 2009-10 - Home - The Chronicle of Higher Education