Concentration

APUS students utilize various payment sources and programs to finance their education expenses, including funds from: Department of Defense, or DoD, tuition assistance programs; federal student aid from Title IV programs; and education benefit programs administered by the U.S. Department of Veteran’s Affairs, or VA, education benefit programs; as well as cash and other sources. Reductions in or changes to DoD tuition assistance, VA education benefits, Title IV programs and other payments sources could have a significant impact on the Company’s operations. As of December 31, 2018 approximately 55% 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, 2016, 2017 and 2018 is as follows:



	Year Ended December 31,
	2016	2017	2018
DoD tuition assistance programs	36%	37%	37%
Title IV programs	29%	27%	26%
VA education benefits	22%	23%	23%
Cash and other sources	13%	13%	14%

A summary of HCN Segment revenue derived from students by primary funding source for the years ended December 31, 2016, 2017 and 2018 is as follows:



	Year Ended December 31,
	2016	2017	2018
Title IV programs	84%	83%	82%
Cash and other sources	13%	14%	16%
VA education benefits	3%	3%	2%

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