Michael Osbun / Op Art

Earlier this year, the six Washington campuses of Everest College, a for-profit school,  were put up for sale after the parent company ran into financial and legal hot water.

That raises interesting questions for students: How do you know if your college is financially sound? And should you be worried if it isn’t?

The Hechinger Report, a nonprofit education news site out of New York, recently suggested five steps you can take to make sure the college you’re attending is financially solid. (The issue applies to nonprofit and for-profit schools, since public colleges and universities aren’t going to run into the kinds of financial problems that would force a closure unless the state itself runs out of money.)

It’s worth paying attention to the financial soundness of your school because, as the Hechinger Report notes, students attending a college that abruptly closes must find another place to continue their education, and they may find it difficult to get credit for the classes they took at the closing school. It can also be challenging to transfer student loan paperwork. And a shuttered college will likely be diminished in the eyes of employers.

For-profit colleges and universities can an attractive option to students who want to pursue technical training in a specific field and are looking for the convenience of an online program or a campus that’s located close to home.

But for-profits, which include familiar brands such as the University of Phoenix and ITT Technical Institute, have also faced intense scrutiny over the high cost of tuition and the rate at which graduates default on their student loans.