FINANCING RECEIVABLES

3 Months Ended

Sep. 30, 2015

NOTE 5: FINANCING RECEIVABLES

DeVry Group’s institutional loan programs are available to students at its Chamberlain, Carrington and DeVry University institutions as well as selected students at AUC, RUSM and RUSVM. These loan programs are designed to assist the small percentage of students who are unable to completely cover educational costs by other means. These loans may be used for tuition, books and fees and are available only after all other student financial assistance has been applied toward those purposes. In addition, AUC, RUSM and RUSVM loans may be used for students’ living expenses. Repayment plans for institutional loan program balances are developed to address the financial circumstances of the particular student. Interest charges accrue each month on the unpaid balance. Chamberlain, Carrington and DeVry University require that students begin repaying loans while they are still in school with a minimum payment level designed to assure interest does not accrue to the loan balance. Payments may increase upon completing or departing the program. After a student leaves school, the student typically will have a monthly installment repayment plan with all balances due within 12 to 60 months. In addition, the Becker CPA Review Course can be financed through Becker with a zero percent, 18-month term loan program.

Reserves for uncollectible loans are determined by analyzing the current aging of accounts receivable and historical loss rates of loans at each institution. Management performs this analysis periodically throughout the year. Since all of DeVry Group’s financing receivables are generated through the extension of credit to students to fund educational costs, all such receivables are considered part of the same loan portfolio.

The following table details the institutional loan balances along with the related allowances for credit losses as of September 30, 2015 and 2014 (in thousands).

	As of September 30,
	2015				2014
Gross Institutional Student Loans			$	71,774			$	67,174

Allowance for Credit Losses

Balance at Beginning of Period	$	(20,630)			$	(19,868)
Charge-offs		1,726				1,714
Recoveries		(189)				(269)
Additional Provision		(3,939)				(2,668)
Balance at End of Period				(23,032)				(21,091)

Net Institutional Student Loans			$	48,742			$	46,083

Amounts as of September 30, 2014 have been revised from the prior year for correction of errors in the table.

Of the net balances above, $25.7 million and $22.9 million were classified as Accounts Receivable, Net in the Consolidated Balance Sheets at September 30, 2015 and 2014, respectively, and $23.0 million and $23.2 million, representing amounts due beyond one year, were classified as Other Assets in the Consolidated Balance Sheets at September 30, 2015 and 2014, respectively.

The following tables detail the credit risk profiles of the institutional student loan balances based on payment activity and provide an aging analysis of past due institutional student loans as of September 30, 2015 and 2014 (in thousands).

	As of September 30,
	2015		2014
Institutional Student Loans:
Performing	$	55,467	$	49,952
Nonperforming		16,307		17,222
Total Institutional Student Loans	$	71,774	$	67,174

							Greater						Total
	30-59		60-89		90-119		Than 120						Institutional
	Days Past		Days Past		Days Past		Days Past		Total				Student
	Due		Due		Due		Due		Past Due		Current		Loans
Institutional Student Loans:
September 30, 2015	$	5,193	$	2,602	$	2,503	$	16,307	$	26,605	$	45,169	$	71,774
September 30, 2014	$	5,136	$	2,171	$	1,426	$	17,222	$	25,955	$	41,219	$	67,174

Loans are considered nonperforming if they are more than 120 days past due. At September 30, 2015, nonperforming loans totaled $16.3 million, of which $15.9 million had a specific allowance for credit losses. At September 30, 2014 nonperforming loans totaled $17.2 million, of which $14.7 million had a specific allowance for credit losses.