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Feds probe finances at Eastern Nazarene College

A view of the Eastern Nazarene College campus in Quincy.Pat Greenhouse/Globe Staff/File/Boston Globe

Federal education officials are investigating Eastern Nazarene College in Quincy for potential financial problems, according to records released Friday by the US Department of Education.

The agency released the names of 20 schools that are under review for concerns about how they manage federal financial aid funds or for potential lapses in standards that must be met to receive the funds.

The schools are part of an updated list of 544 colleges worldwide under what is known as "heightened cash monitoring" by US education officials.

The department also announced Friday that it has removed 12 schools from the list that are no longer subject to the heightened monitoring. Those include two in Massachusetts: Urban College of Boston and Bard College at Simon's Rock in Great Barrington.


Placement on the list does not necessarily mean a school has broken the law, the Education Department said in a statement. Rather, it is a warning sign that means officials are watching those schools more closely to make sure they use federal student aid properly.

Schools can be put on the list as a result of late or missing paperwork, outstanding liabilities, concern about administrators' capabilities, or other shortcomings.

Of the eight Massachusetts schools that remain on the list, only Eastern Nazarene and Roxbury Community College are at the higher of two levels of monitoring. Both levels mean schools face more stringent reporting requirements to the federal government.

Eastern Nazarene's president said Friday that US officials flagged the school at the end of the fall 2014 semester after they reviewed one of the college's degree programs.

Reviewers only examined a program designed for non- traditional adult learners, according to president Corlis McGee, and not the entire academic or financial aid system.

Since then, the college has received clean reviews after it submitted four sets of data to the department, she said.


"Most importantly, this review has had no impact on our students, who continue to receive their financial aid as usual," McGee said in a statement, adding that they have not yet received a final report.

Roxbury Community College is not subject to an active investigation. It is, however, the only public college in the country under the highest level of scrutiny due to what is called "administrative capability."

That designation is more serious than "financial responsibility," which is the reason the other Massachusetts schools are on the list.

Earlier this week, Roxbury Community College's president, Valerie R. Roberson, said the school has improved its financial situation but the list does not reflect the change.

The other Massachusetts schools on the list are Boston Baptist College, Marian Court College, Montserrat College of Art, New England College of Business and Finance, the New England Institute of Art, and Brockton Hospital School of Nursing.

Laura Krantz can be reached at laura.krantz@globe.com. Follow her on Twitter @laurakrantz.