NGU Scores High on Financial Responsibility Test
The U.S. Department of Education recently released data for the 2013 fiscal year financial-responsibility test for 1,880 degree-granting institutions. All private colleges that award federal student aid must participate in the test, which is based on information from the institutions audited financial statements. While over 150 degree-granting institutions failed the test, North Greenville University received the highest composite score.
The department develops a composite score on a scale of negative 1.0 to positive 3.0, 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 with lower scores are subject to additional oversight and, in some cases, must post letters of credit. North Greenville University scored a three.
It should be noted that composite scores are only one of several factors that the Department uses to assess an institution's financial responsibility compliance and is not a reflection of the quality of education at a given school.
To find out more information about composite scores and other required financial standards, refer to the Financial Standards chapter of the Federal Student Aid Handbook produced by the Department.For more information about this subject visit studentaid.ed.gov/about/data-center/school/ composite-scores.
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