10 N.J. colleges and trade schools receive low marks in federal ‘financial responsibility’ test

By Kelly Heyboer/ The Star-Ledger

JERSEY CITY — Ten New Jersey colleges and trade schools were flagged in a federal “financial responsibility” test designed to identify higher education institutions with shaky finances, according to new data released by the federal Department of Education.

The schools — which include Saint Peter’s University, New Brunswick Theological Seminary and several career colleges — could face increased federal oversight or be required to post a letter of credit in order for their students to continue receiving federal financial aid, federal officials said.

The schools were among hundreds of private and for-profit colleges screened nationwide in a test that gives students and the public a rare glimpse into the financial health of education institutions.

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