JACKSONVILLE —
Lon Morris College failed its Department of Education financial responsibility test for the past fiscal year, according to data reports released in November.
Because of the college's low score of 0.6, the school will have tighter federal restrictions in order to continue participating in Federal Student Aid (FSA) programs.
The test is a financial standard in which private colleges and universities must provide an audited financial statement to the department for an overview of the school's fiscal responsibility.
Schools are rated on a minus-1.0 to 3.0 calculation based on sufficient cash reserves, meeting all its financial obligations and maintaining a current status in debt payments, among other criteria.
If a school receives a score of a minus-1.0 to 0.9, it is considered by the DOE not to be financially responsible and may be required to submit a letter of credit showing it has a minimum of 10 percent of its FSA funds in reserve. The letter is required to be submitted no later than 30 days after the final report was issued, according to Department of Education policy.
However, the National Association of Independent Colleges and Universities said in a statement students who attend, or are considering attending, one of the private nonprofit institutions on the list, should not rule out a college simply because it is listed.
“Being on the list means the college must agree to additional reporting, financial aid monitoring, or administrative oversight requirements to be in compliance; or post a letter of credit to ensure the safety of federal student aid,” officials said in a news release.
“Inclusion on the list does not mean a college is in danger of closing," NAICU officials said. "The overwhelming majority of institutions that have appeared on the list in previous years continue to provide a quality education to their students."
"Students and parents who are concerned about a college’s inclusion on the list should talk to the school about the reasons for it,” they said.
The Daily Progress asked for an interview with Dr. Miles McCall, president of LMC, on Tuesday about news reports that paychecks to LMC employees were being delayed. The school issued a press release quoting McCall, who later gave a phone interview to KETK television station in Tyler.
The Progress asked again on Wednesday for an interview with McCall, but Jessica Chiles, director of media relations, said he would not be available because he would be in meetings all week.
McCall was in meetings all day Thursday, Chiles said, and McCall would not be available for comment and the school would not be issuing a statement.
Local News
Federal agency: LMC failed financial responsibility test for 2010
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