Question-and-Answer Session
Operator
(Operator instructions) Thank you. Our first question today is coming from the line of Jerry Herman of Stifel Nicolaus. Please go ahead with your question, sir.
Jerry Herman – Stifel Nicolaus
Okay. Hi, guys. I guess we will go right to (inaudible) first as you might expect. Just to be clear, the internally-funded numbers are in accounts receivable, correct, Dan?
Dan Fitzpatrick
That is correct.
Jerry Herman – Stifel Nicolaus
And the relationship there seems to suggest that those numbers at least at this juncture are pretty low, if you just look at the change in AR either sequentially or year-over-year as a relationship to revenues generally, is it actually coming in less than what you guys thought earlier on, and is the gap filled by private lenders, maybe coming in more favorably than what you thought earlier on?
Kevin Modany
Well, again we are not giving a lot of guidance there, Jerry, but let me try to give you a little bit of color. I mean, we have really kind of went at this, looking at these underwriting standards and we really don’t have a lot of detail about – we don’t know what the underwriting standards are, but we really have to process transactions through those underwriting standards to get a general sense of where things are coming out. As we look at what we are seeing right now, we are hesitant to project forward this as a longer term expectation. That being said, I think if you look at our comments, we said during the fourth quarter based upon our conversations, we are not expecting a big change there. We just want to make sure we get a couple of quarters of new students through the underwriting standards, get all of the continuing students through the repackaging efforts through there, because as we understand it, the underwriting standards actually incorporate on where you are in academic period, so if you are further along, you may actually get higher approval rates than not. So we want to make sure we get full class through there and then we will kind of digest – I don’t want to say that we are pleasantly surprised or that we are not one way or the other right now. But it is fully reflected. Everything that we are seeing right now is fully-reflected in that AR, and you know, after we get through one more quarter, I think we are going to have a better sense of what we should expect on a full year basis and we will try to give you more color on that.
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