Several colleges in our area are on a federal watch list keeping an eye on their finances.
560 institutions across the country are on the U.S. Department of Education list. Four of them are in northeastern Pennsylvania.
The feds say schools on the list are being watched for how they use taxpayer money.
The Department of Education list is called "heightened cash monitoring."
Department of Education officials say the institutions on the list are being monitored to make sure federal student aid -- taxpayer money -- is used in an accountable way.
The institutions in our area that are on the heightened cash monitoring list include:
- Keystone College in La Plume,
- Fortis Institute in Forty Fort and Scranton,
- McCann School of Business and Technology in Pottsville.
The Department of Education is watching closely how Keystone College uses federal financial aid -- taxpayer money.
But Keystone is quick to say that doesn't affect students.
"Being in this heightened cash monitoring situation doesn't impact our daily business," said Keystone College official Kevin Wilson.
Department of Education officials say this list is not meant to be, "a red flag for students and taxpayers but a caution light."
The feds don't give specifics about each school, but say schools on the list can have money issues ranging from serious to less troublesome.
But at this point, the Department of Education says being on the list doesn't have an impact on students themselves.
Keystone College released a statement saying:
"Our inclusion in the list is due to our having a composite score below 1.5, but greater than 1.0 for the fiscal year ended May 31, 2013. The DOE considers us to have met their financial responsibility standard, but is providing additional administrative oversight. The HCM1 requirements, which we are subject to, do not affect our daily operations or our ability to disburse federal financial aid to our students in an expeditious manner.
"Like many colleges and universities across the nation, Keystone has been faced with the challenge in recent years of competing in an era of enrollment declines, consistent with changing demographics. We have been making the necessary adjustments to ensure that we will meet the DOE’s standards going forward."
McCann School of Business and Technology in Pottsville released as statement saying:
"It is important to understand that the appearance of one of our schools on the list does not have any effect on students’ ability to receive federal student aid for which they are eligible nor does it reflect any new or troubling developments involving our school. No doubt there are troubled schools on that list. Our school is not one of those troubled schools.
"In addition, according to a posting on March 31, 2015, on The Official Blog of the U.S. Department of Education, Undersecretary Ted Mitchell wrote: 'Heightened Cash Monitoring is not necessarily a red flag to students and taxpayers, but it can serve as a caution light. It means we are watching these institutions more closely to ensure that institutions are using federal student aid in a way that is accountable to both students and taxpayers.'"
Keystone officials insist it's not troubled either, saying the school met federal financial standards, but at a level that requires additional Department of Education oversight. As a relatively new four-year college, there aren't a lot of savings there.
"We are making whatever adjustments and assessments that are necessary as we mature and develop, that we remain viable and we'll provide an uninterrupted experience for our students," Wilson said.