Concentration

APUS students utilize various payment sources and programs to finance tuition. These programs include funds from DoD tuition assistance programs, VA education benefit programs, and federal student aid from Title IV programs, as well as cash and other sources. Reductions in or changes to DoD tuition assistance, VA education benefits, Title IV programs and other payment sources could have a significant impact on the Company’s operations. As of December 31, 2016 approximately 54% of APUS students self-reported that they served in the military on active duty at the time of initial enrollment. Active duty military students generally take fewer courses per year on average than non-military students.

A summary of APEI Segment revenue derived from students by primary funding source for the years ended December 31, 2014, 2015 and 2016 is as follows:



	Year Ended December 31,
	2014	2015	2016
Title IV programs	36%	32%	29%
DoD tuition assistance programs	35%	35%	36%
VA education benefits	18%	21%	22%
Cash and other sources	11%	12%	13%

As of December 31, 2016 approximately 84% of the HCON Segment’s revenue was derived from students who received federal student aid and approximately 2.5% of the HCON Segment’s revenue was derived from students who received veteran’s education benefits.

A reduction in or change to any of these programs could have a significant impact on the Company’s operations and financial condition.