When 114 colleges fail a U.S. Department of Education test, everyone pays attention. 

The test can be a gauge of a college’s financial condition – and failing it indicates a school may be in serious trouble.

Look at it this way: Five of the colleges that failed the test last year or the year before, are now out of business, have merged with another school or have been sold to a for-profit company. (The 114 colleges are private, non-profit institutions.)

Once a college is on the list, it must submit audited financial statements to the Education Department at least nine months before the end of the fiscal year. And while these schools still can give students federal aid, they’re monitored closely by the government.

Lowest schools on the list: Acupuncture and Integrative Medicine College (CA), City College at Casselberry (FL), Kendall College (IL), Chancellor University (OH), and Robert B. Miller College (MI).

(A paid subscription is required to view the entire list at Chronicle.com)

Do you think failing the test spells big trouble for these institutions? Let us know in the comments section below.

Tags: finance, U.S. Department of Education