The impact of the pandemic has once again pushed higher education institutions to the limit, forcing many private not-for-profit institutions to rethink their budgeting plans. As students consider alternative options to college, become more selective in their academic study, and seek greater resources, institutions will have to make difficult decisions about staff, academic programs, and operations. This crisis on top of the already failing measures to reduce student debt have taxed the higher education system. To ensure that institutions are being responsible about their Title IV funding, the United States Department of Education utilizes a formula to assess the fiscal health of private institutions. Colleges that fail this assessment are often placed on a heightened monitoring program and are subject to strict oversights. This research study aims to assess the accuracy of the Federal Financial Responsibility Score (FRCS), by evaluating type I and type II errors to assess if the DOE's formula accurately predicts institutional closure. Moreover, this research will evaluate an alternative formula, the Modified Risk Assessment Index (MRA), which applies an additional ratio along with external variables to determine if it serves as a more accurate predictor of college fiscal health. [The dissertation citations contained here are published with the permission of ProQuest LLC. Further reproduction is prohibited without permission. Copies of dissertations may be obtained by Telephone (800) 1-800-521-0600. Web page: http://www.proquest.com.bibliotheek.ehb.be/en-US/products/dissertations/individuals.shtml.]