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

Discussion in 'General Distance Learning Discussions' started by rmm0484, Oct 13, 2011.

  1. rmm0484

    rmm0484 Member

    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.
    Last edited by a moderator: Oct 13, 2011
  2. rmm0484

    rmm0484 Member

    Last edited by a moderator: Oct 15, 2011

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