177 Private Colleges Fail Education Dept.'s Financial-Responsibility Test "According to a Chronicle analysis of data released on Tuesday, 177 private colleges that grant degrees failed a U.S. Education Department test for financial responsibility in the 2014-15 academic year. That's 18 more than the previous year," according to The Chronicle of Higher Education. "Of the institutions that failed, 112 are nonprofit, and the remaining 65 are for-profit. In the previous year, 93 of the 159 failing institutions were nonprofit. The department considers an institution’s debt and assets, among other factors, in giving it a score ranging from -1 to 3. Scores lower than 1.5 are considered failing. The department’s methodology in devising the scores has drawn sharp criticism in the past from some higher-education groups. The latest scores cover the institutions for fiscal years ending between July 1, 2014, and June 30, 2015. Several of the colleges have closed since the 2014-15 academic year. Some, like Dowling College, in Oakdale, N.Y., previously failed the financial-responsibility test, while others, like Saint Joseph’s College, in Rensselaer, Ind., passed it." NASFAA's "Headlines" section highlights media coverage of financial aid to help members stay up to date with the latest news. Inclusion in Today's News does not imply endorsement of the material or guarantee the accuracy of information presented. Publication Date: 3/10/2017