Dive Brief:
- The overall number of schools under heightened financial oversight by the U.S. Department of Education has decreased since March, but 38 new schools have been added to the list, according to The Wall Street Journal.
- Of the 513 schools on the list, nearly 20% are public institutions whose financial responsibility has come into question.
- Late or missing audits, questionable management of federal financial aid data and general concerns about fiscal stewardship are all reasons an institution might make the list.
Dive Insight:
Though more than half of the schools on the list are for-profit institutions, public nonprofits and private institutions are not in the clear. Private law schools, in particular, were noted along with Bible colleges as other prevalent institution types on the list.
As the U.S. Department of Education continues to emphasize return on investment and moves forward on plans to make a pathway for students to sue institutions based on job outcomes, institutions should expect increased scrutiny into fiscal management practices, especially for students receiving federal aid.
