Aspen University Removed from HCM2 Payment Method
Aspen Group, Inc. (OTCQB: ASPU) announced that its subsidiary, Aspen University (AU), has been removed from Heightened Cash Monitoring 2 (HCM2) status by the U.S. Department of Education (DOE). Effective August 16, 2024, AU has transitioned to Heightened Cash Monitoring 1 (HCM1) status. This change significantly improves AU's financial aid disbursement process. Under HCM1, while AU still needs to use its own funds for initial disbursements, it can now immediately draw down funds from the DOE after submitting disbursement records. This shift is expected to reduce variability in the Company's unrestricted cash balances, marking a positive development for Aspen Group's financial operations.
Aspen Group, Inc. (OTCQB: ASPU) ha annunciato che la sua controllata, Aspen University (AU), è stata rimossa dallo stato di Monitoraggio dei Fondi in Contante 2 (HCM2) dal Dipartimento dell'Istruzione degli Stati Uniti (DOE). A partire dal 16 agosto 2024, AU è passata allo stato di Monitoraggio dei Fondi in Contante 1 (HCM1). Questo cambiamento migliora significativamente il processo di erogazione dei fondi per l'aiuto finanziario di AU. Sotto HCM1, anche se AU deve ancora utilizzare i propri fondi per le erogazioni iniziali, ora può prelevare immediatamente fondi dal DOE dopo aver presentato i registri di erogazione. Questo cambiamento è previsto per ridurre la variabilità nei saldi di cassa non vincolati della Società, segnando un sviluppo positivo per le operazioni finanziarie di Aspen Group.
Aspen Group, Inc. (OTCQB: ASPU) anunció que su subsidiaria, Aspen University (AU), ha sido eliminada del estado de Monitoreo de Efectivo Aumentado 2 (HCM2) por el Departamento de Educación de los EE.UU. (DOE). A partir del 16 de agosto de 2024, AU ha transicionado al estado de Monitoreo de Efectivo Aumentado 1 (HCM1). Este cambio mejora significativamente el proceso de distribución de ayuda financiera de AU. Bajo HCM1, aunque AU aún necesita usar sus propios fondos para las distribuciones iniciales, ahora puede retirar inmediatamente fondos del DOE después de presentar los registros de distribución. Se espera que este cambio reduce la variabilidad en los saldos de efectivo no restringidos de la Compañía, marcando un desarrollo positivo para las operaciones financieras de Aspen Group.
Aspen Group, Inc. (OTCQB: ASPU)는 자회사인 Aspen University (AU)가 미국 교육부(DOE)로부터 강화된 현금 모니터링 2(HCM2) 상태에서 제외되었다고 발표했습니다. 2024년 8월 16일부터 AU는 강화된 현금 모니터링 1(HCM1) 상태로 전환되었습니다. 이 변화는 AU의 재정 지원 배분 프로세스를 크게 개선합니다. HCM1 하에서 AU는 초기 배분을 위해 자금을 사용해야 하지만, 이제 배분 기록을 제출한 후 DOE로부터 즉시 자금을 인출할 수 있습니다. 이러한 변화는 회사의 제한되지 않은 현금 잔액의 변동성을 줄이는 데 도움이 될 것으로 예상됩니다, 이는 Aspen Group의 재무 운영에 긍정적인 발전을 의미합니다.
Aspen Group, Inc. (OTCQB: ASPU) a annoncé que sa filiale, Aspen University (AU), a été retirée du statut de Surveillance Accrue des Liquidités 2 (HCM2) par le Département de l'Éducation des États-Unis (DOE). À compter du 16 août 2024, AU a transitionné au statut de Surveillance Accrue des Liquidités 1 (HCM1). Ce changement améliore considérablement le processus de versement de l'aide financière d'AU. Sous HCM1, bien qu'AU doive encore utiliser ses propres fonds pour les versements initiaux, elle peut désormais prélever immédiatement des fonds auprès du DOE après avoir soumis les dossiers de versement. Ce changement devrait réduire la variabilité des soldes de liquidités non restreintes de la Société, marquant un développement positif pour les opérations financières d'Aspen Group.
Aspen Group, Inc. (OTCQB: ASPU) gab bekannt, dass ihre Tochtergesellschaft, Aspen University (AU), vom U.S. Department of Education (DOE) vom Status des Intensiven Cash Monitoring 2 (HCM2) entfernt wurde. Ab dem 16. August 2024 hat AU in den Status des Intensiven Cash Monitoring 1 (HCM1) gewechselt. Diese Änderung verbessert den Prozess der finanziellen Unterstützungsauszahlung von AU erheblich. Unter HCM1 muss AU zwar weiterhin eigene Mittel für die anfänglichen Auszahlungen verwenden, kann aber jetzt nach Einreichung der Auszahlungsunterlagen sofort Mittel vom DOE abrufen. Dieser Wechsel wird voraussichtlich die Variabilität der unbeschränkten Bargeldbestände des Unternehmens reduzieren, was eine positive Entwicklung für die finanziellen Operationen der Aspen Group darstellt.
- Transition from HCM2 to HCM1 status for Aspen University
- Immediate access to DOE funds after submitting disbursement records
- Expected reduction in variability of unrestricted cash balances
- AU still required to disburse student financial aid from its own institutional funds initially
PHOENIX, Aug. 19, 2024 (GLOBE NEWSWIRE) -- Aspen Group, Inc. ("AGI" or the “Company”) (OTCQB: ASPU), an education technology holding company, announced today that Aspen University ("AU") has been removed from the Heightened Cash Monitoring 2 ("HCM2") status by the U.S. Department of Education (“DOE”). Effective August 16, 2024, AU transitioned to Heightened Cash Monitoring 1 ("HCM1") status.
Under the previous HCM2 payment method, AU had to disburse student financial aid from its own institutional funds. AU was then required to submit a Reimbursement Payment Request (the Request) to the DOE, and reimbursement was received only after the DOE completed its review of the Request. With the transition to HCM1, AU will still need to disburse student financial aid from its own institutional funds, but AU can now submit disbursement records to the DOE system and immediately draw down the funds to cover those disbursements. This shift from HCM2 to HCM1 is expected to reduce the variability of the Company’s unrestricted cash balances.
About Aspen Group, Inc.
Aspen Group, Inc. is an education technology holding company that leverages its infrastructure and expertise to allow its two universities, Aspen University and United States University, to deliver on the vision of making college affordable again. For more information, visit www.aspu.com.
Contact Information:
Hayden IR
Kimberly Rogers
(385) 831-7337
Kim@HaydenIR.com
FAQ
What change in status did Aspen University (ASPU) experience with the U.S. Department of Education on August 16, 2024?
How does the transition to HCM1 status affect Aspen University's (ASPU) financial aid disbursement process?
What financial impact is expected for Aspen Group (ASPU) due to the change in cash monitoring status?
When did the U.S. Department of Education remove Aspen University (ASPU) from HCM2 status?
