The U.S. Department of Education requires all private colleges that award federal student aid to participate in an annual test based on information from their audited financial statements. The department develops a composite score on a scale of negative 1.0 to positive 3.0, based on financial ratios that measure factors such as net worth, operating losses, and the relationship of assets to liabilities. Institutions with scores of 1.5 to 3 pass. Those with lower scores are subject to additional oversight and, in some cases, must post letters of credit. The table below shows how 1,889 degree-granting institutions included in the latest analysis fared.