Local private colleges, universities receive passing grades for financial responsibility in Chronicle report

THE CHRONICLE OF Higher Education studied the financial responsibility of private colleges; all in Rhode Island and Southeastern Massachusetts received passing grades.
THE CHRONICLE OF Higher Education studied the financial responsibility of private colleges; all in Rhode Island and Southeastern Massachusetts received passing grades.

PROVIDENCE – Private colleges and universities in Rhode Island and southeastern Massachusetts schools received passing grades for financial responsibility, according to a recent analysis of federal data conducted by the Chronicle of Higher Education.
According to the Chronicle, for the 2013-14 academic year, 160 degree-granting private colleges out of a total of 1,889 failed the U.S. Education Department’s financial responsibility test. The federal test quantifies for-profit and nonprofit institutions’ financial health using data related to debt and assets. Scores range from -1 to 3, with those lower than 1.5 getting a failing grade.
Roger Williams University scored a 2.9 out of a possible 3, and all other schools in the region scored 3.
In Rhode Island, other passing schools include Brown, Johnson and Wales, Salve Regina and Bryant universities, as well as Providence College, New England Institute of Technology, and the Rhode Island School of Design.
Also earning a 3 were Stonehill College in Easton, Mass., and Wheaton College in Norton, Mass.
The U.S. DOE’s composite score uses financial ratios that measure net worth, operating losses and the relationship of assets to liabilities. Those with lower scores may receive additional oversight and, in some cases, are required to post letters of credit, according to the Chronicle.
State institutions were not assessed.

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