Student Receivables

6 Months Ended

Dec. 31, 2013

Student Receivables [Abstract]

Loans, Notes, Trade and Other Receivables Disclosure

STUDENT RECEIVABLES    

The Company records student receivables at cost less an estimated allowance for doubtful accounts, which is determined on a monthly basis based on the likelihood of collection considering students' enrollment status and historical payment experience. For example, receivables from students who are out-of-school are reserved for at a higher rate than the receivables from students who are in-school. When certain criteria are met, which is generally when receivables age past the due date by more than four months, and internal collection measures have been taken without success, the accounts of former students are placed with a collection agency. Student accounts that have been placed with a collection agency are reserved for at a very high rate and are written off after collection attempts have been unsuccessful.

Student receivables include $27.6 million (net of $29.6 million allowance), $24.3 million (net of $27.9 million allowance), and $18.9 million (net of $24.1 million allowance) recorded in other long-term assets on the accompanying consolidated balance sheets at December 31, 2013, June 30, 2013 and December 31, 2012, respectively. These amounts relate to the extension of credit to students for amounts due beyond one year, which helps students fund the difference between total tuition and fees and the amount covered by various sources of financial aid, including amounts awarded under Title IV programs and private loans. During fiscal 2013, the Company extended the repayment period for financing made available to students from a maximum of 36 months beyond graduation to a maximum of 42 months beyond graduation. The majority of applicable accounts incur interest charges that accrue each month on unpaid balances except for those accounts that have been placed into collections. The gross short-term and long-term student receivables by student status were as follows (in thousands):

	December 31, 2013		June 30, 2013		December 31, 2012
In-school	$	191,671	$	194,062	$	188,224
Out-of-school	209,647		239,330		186,465
Gross student receivables	$	401,318	$	433,392	$	374,689

The Company commenced a new program in fiscal 2013 under which it purchases loans awarded and disbursed to its students from a private lender. The Company has awarded approximately $10 million of aid under this program as of December 31, 2013, all of which has been purchased and recorded in other long-term assets, net of an allowance.

Details surrounding the Company's total allowance for doubtful accounts, including reserves related to student and other related receivables and loan loss reserves is as follows (in thousands):

Balance June 30, 2012	$	250,282
Bad debt expense	171,850
Amounts written off	(213,884		)
Balance June 30, 2013	208,248
Bad debt expense	84,683
Amounts written off	(72,236		)
Balance December 31, 2013	$	220,695

The amounts set forth above are recorded within student receivables, net and other long-term assets on the consolidated balance sheets. Recoveries of amounts previously written off were not significant in any period presented.