A major for-profit college chain is facing increased scrutiny from regulators amid questions from its accreditor about whether it can meet its standards.

On Monday, the Department of Education sent a letter to Kevin Modany, the chief executive of ITT Educational Services, asking the school to show that it has more than $123 million available to refund students and wind down operations in the event it shuts down unexpectedly.

If the Department is concerned about an institution’s financial management, it isn’t uncommon for the agency to ask the school to post a letter of credit from a bank showing it has 10% of the amount it received in federal financial aid in the most recent fiscal year available in case of a shut down. The Department had previously made that request of ITT, but Monday’s letter asks the company increase that share to 20%. The goal of the letter of credit is to ensure that the school can meet its liabilities to students and taxpayers if it shuts down suddenly.

The request comes as ITT faces scrutiny from its accreditor, state law-enforcement officials and other federal agencies. The Accrediting Council for Independent Colleges and Schools, which oversees ITT, asked the school earlier this year to “show cause” as to why it should maintain its accreditation. Schools must be accredited in order to receive federal financial aid funds. Since most higher education institutions rely heavily on financial aid to operate, a loss of accreditation and the funds that come with it could likely result in collapse.

“The Department believes that the ACICS ‘Council’ action represents an increased risk to [federal financial aid] funds that ITT administers on behalf of its students,” a Department official wrote in the letter.

In addition to the ACICS action, ITT is also facing probes from 19 states attorneys general as well as the Securities and Exchange Commission and the Consumer Financial Protection Bureau.

Nicole Elam, an ITT spokeswoman, said in an emailed statement that the school is reviewing the Department’s letter, “which comes as a result” of the “unexpected” ACICS action, which the organization took “under extreme political pressure.” ACICS is facing scrutiny from consumer advocates over the way it monitors the colleges under its purview.

“We continue to cooperate with all regulatory authorities as new mandates are levied upon us,” Elam wrote. “As always, ITT Educational Services will continue to keep students our number one priority.”