FINANCING RECEIVABLES

3 Months Ended

Sep. 30, 2016

Receivables [Abstract]

FINANCING RECEIVABLES

NOTE 5: FINANCING RECEIVABLES

DeVry Group’s institutional loan programs are available to students at its AUC, RUSM, RUSVM, Chamberlain, Carrington and DeVry University institutions. These loan programs are designed to assist students who are unable to completely cover educational costs consisting of 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 prove their capability to repay and reduce the possibility of over borrowing and targeted to minimize interest being accrued on 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. In addition, the Becker CPA Review Course can be financed through Becker with an 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, 2016 and 2015 (in thousands).

	As of September 30,
	2016				2015
Gross Institutional Loans			$	71,669			$	71,774
Allowance for Credit Losses:
Balance at July 1	$	(20,800)			$	(20,630)
Charge-offs and Adjustments		2,513				1,726
Recoveries		(316)				(189)
Additional Provision		(2,854)				(3,939)
Balance at End of Period				(21,457)				(23,032)
Net Institutional Loans			$	50,212			$	48,742

Of the net balances above, $23.0 million and $25.7 million were classified as Accounts Receivable, Net in the Consolidated Balance Sheets at September 30, 2016 and 2015, respectively, and $27.2 million and $23.0 million, representing amounts due beyond one year, were classified as Other Assets in the Consolidated Balance Sheets at September 30, 2016 and 2015, respectively.

The following tables detail the credit risk profiles of the institutional loan balances based on payment activity and provide an aging analysis of past due institutional loans as of September 30, 2016 and 2015 (in thousands).

	As of September 30,
	2016		2015
Institutional Loans:
Performing	$	51,234	$	55,467
Nonperforming		20,435		16,307
Total Institutional Loans	$	71,669	$	71,774

	30-59 Days Past Due		60-89 Days Past Due		90-119 Days Past Due		Greater Than 120 Days Past Due		Total Past Due		Current		Total Institutional Student Loans
Institutional Loans:
September 30, 2016	$	7,892	$	2,680	$	1,782	$	20,435	$	32,789	$	38,880	$	71,669
September 30, 2015	$	5,193	$	2,602	$	2,503	$	16,307	$	26,605	$	45,169	$	71,774

Loans are considered nonperforming if they are more than 120 days past due. At September 30, 2016, nonperforming loans totaled $20.4 million, of which $20.2 million had a specific allowance for credit losses. At September 30, 2015 nonperforming loans totaled $16.3 million, of which $15.9 million had a specific allowance for credit losses.