National American said it asked the Ed Department to reconsider the amount of Title IV awards it would need to back with a letter of credit. The department initially asked for a letter of credit for either 50% ($36.7 million) or 15% ($11 million) of its Title IV awards, with the latter securing only provisional certification.
The appeal to the department resulted in two more options: posting a letter of credit for 10% of its Title IV awards ($7.3 million) or going on Heightened Cash Monitoring 2, with the department withholding a percentage of each HCM2 Title IV payment until the amount reached $7.3 million.
