A recent article in The Chronicle of Higher Education says that Pittsburgh's La Roche College is one of 114 schools nationally that could be on shaky footing based on a federal analysis of its finances.

The newspaper reported in its editions dated June 12 that La Roche appeared on a list of private, nonprofit colleges that failed a "financial responsibility" test by the U.S. Department of Education. The test looked at ratios involving debt, expenses, income and resources.

La Roche, as a result of its low score, is under additional federal oversight for financial responsibility, according to the education department.

"Although not designed as such, failing the test can be an indicator that a college is in danger of not surviving," the newspaper stated.

Despite the federal analysis, La Roche insisted yesterday that it is financially healthy and viable.

"There's no danger," La Roche spokesman Ken Service said. "We'll be in business for a long time to come."

"Where we have run afoul of this particular ratio is we have high debt and a small endowment," Mr. Service said.

The education department would not release the analysis to the Pittsburgh Post-Gazette without a Freedom of Information Act request, which typically could takes weeks or months to fulfill.

But it did say: "When an institution does not meet the financial standards required, schools are subject to cash monitoring and reporting requirements and in some cases posting a letter of credit.

"While we are always concerned when any school fails to meet a performance standard, a school with a failing composite score generally presents little additional risk to students or to federal funds as these schools seldom close."

Because of its score, La Roche last July had to secure a $4.8 million letter of credit with First Commonwealth Bank as a guarantee that it could repay the education department millions of dollars in federal financial aid if the school went out of business.

However, Mr. Service said, there is no danger of that happening. He added that La Roche had not drawn on the letter of credit, which must be renewed annually.

"As for faculty, students and staff, there is no impact on them. The financial aid flows to our students just the same as it always has," Mr. Service said.

La Roche's appearance on the list is primarily due to heavy debt incurred through a school program that awarded full scholarships to students from struggling nations, according to Mr. Service.

The Pacem in Terris program ran into trouble around 2002 for enrolling students without sufficient financing to cover their expenses. It has since shrunk drastically.

"Our situation is really a leftover from some of the debts incurred by the Pacem in Terris program ... That program had incurred some debts because some of the promised funding for it had not materialized several years ago," Mr. Service said.

That debt climbed to $7 million by the end of La Roche's fiscal year in 2007, Mr. Service said.

The school's audited financial statements for that fiscal year, which ended June 30, provided the basis for the education department's ratings, Mr. Service said.

Without that debt, "I can say our ratio would have been much healthier, and in all likelihood we probably would not have been on the list."

La Roche's total debt is around $32 million. Mr. Service said that number should be shaved to just under $29 million by the end of the current fiscal year. La Roche's endowment is about $3 million. The college has about 1,200 full-time students.

"The good news from our perspective is the college has been operating its operating budget on a break-even basis for the last several years," Mr. Service said.

La Roche's financial picture will improve when it finalizes a deal to sell 27 acres of little-used land. La Roche has a sales agreement with AdVenture Development LLC in North Carolina. Mr. Service declined to identify the sales price.

In December 2007, the school sold 10 acres to Holy Trinity Greek Orthodox Church for $1 million.

"We don't expect to stay on this list," Mr. Service said. "We expect to be off it in a year or two."