FINANCING RECEIVABLES

12 Months Ended

Jun. 30, 2018

Receivables [Abstract]

FINANCING RECEIVABLES

NOTE 7: FINANCING RECEIVABLES

Adtalem’s institutional loan programs are available to students at Chamberlain, AUC, RUSM and RUSVM. 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 requires that students begin repaying loans while they are still in school with a minimum payment level designed to demonstrate their capability to repay, reduce the possibility of over borrowing and 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 Exam 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 institutional loans and historical loss rates of loans at each institution. Management performs this analysis periodically throughout the year. Since all of Adtalem’s financing receivables are generated through the extension of credit 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 (in thousands).

	June 30,
	2018						2017
Gross Institutional Loans				$	54,323					$	49,273
Allowance for Credit Losses:
Balance at July 1	$	(9,736	)				$	(6,498	)
Charge-offs and Adjustments		330						436
Recoveries		(61	)					(94	)
Additional Provision		(536	)					(3,580	)
Balance at End of Period					(10,003	)					(9,736	)
Net Institutional Loans				$	44,320					$	39,537

Of the net balances above, $21.2 million and $17.8 million was classified as Accounts Receivable, Net on the Consolidated Balance Sheets at June 30, 2018 and 2017, respectively, and $23.1 million and $21.8 million, representing amounts due beyond one year, was classified as Other Assets, Net on the Consolidated Balance Sheets at June 30, 2018 and 2017, respectively.

The following tables detail the credit risk profiles of the institutional loan balances based on payment activity and an aging of past due institutional loans (in thousands).

	June 30,
	2018		2017
Institutional Loans:
Performing	$	44,492	$	39,745
Nonperforming		9,831		9,528
Total Institutional Loans	$	54,323	$	49,273

	1-29 Days ‎Past Due		30-59 ‎Days Past ‎Due		60-89 ‎Days Past ‎Due		Greater ‎Than 90 ‎Days Past ‎Due		Total ‎Past Due		Current		Total Institutional Loans
Institutional Loans:
June 30, 2018	$	8,473	$	900	$	3,099	$	9,831	$	22,303	$	32,020	$	54,323
June 30, 2017	$	5,900	$	1,686	$	369	$	9,528	$	17,483	$	31,790	$	49,273

Loans are considered nonperforming if they are more than 90 days past due. At June 30, 2018 and 2017, all nonperforming loans were fully reserved.