Lori Meadows
Argosy University's sudden closure in 2019 left thousands of students scrambling to find new education options and complete their degrees. The for-profit college chain, with around 20 campuses and 26,000 students, had faced scrutiny for deceptive marketing practices and financial mismanagement, leading to the loss of federal student aid and the withdrawal of accreditation. The abrupt shutdown left students with financial headaches and uncertainty about their academic standing. While some universities accepted Argosy transfer students, they often did not transfer all credits, requiring students to retake courses. The Education Department also faced criticism for its handling of the situation, with lawmakers calling for better communication and assistance for affected students. As a result, resources and support were mobilised to help displaced Argosy students navigate transfer options and complete their studies.
| Characteristics | Values |
|---|---|
| Argosy University campuses closed down | 2019 |
| Number of campuses | 20 |
| Number of students enrolled | 26,000 |
| Argosy University's parent company | Dream Center Education Holdings (DCEH) |
| Argosy University's accreditor | WASC Senior College and University Commission (WSCUC) |
| Argosy University's accreditation status | Withdrawn in March 2019 |
| Argosy University's deceptive marketing practices | Led students to believe that the school was working to get its Ed.D. in Counseling Psychology degrees accredited by the American Psychological Association (APA) |
| Argosy University's financial irresponsibility | Failed to distribute financial aid to its students, amounting to $9 million |
| Argosy University's teach-out options | Century College offered teach-out options and scholarships to help displaced Argosy University students complete their degrees |
| Argosy University's transfer options | Chicago School of Professional Psychology, Alliant International University, Trident University International, Liberty University in Lynchburg, VA, Concordia University Texas, Ashford University, Indiana Wesleyan University, DeVry University, Bethel University |
| Argosy University's degree validity | The validity of degrees obtained from Argosy University may be called into question due to the closure and the institution's controversial history |
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What You'll Learn
- Argosy University closure: financial impact and fallout
- Argosy University students' options for transferring to other institutions
- Argosy University's accreditation status and the impact on students
- The role of the US Department of Education in Argosy University's closure
- Argosy University's controversial history and legal issues
Argosy University closure: financial impact and fallout
Argosy University, a for-profit college chain with approximately 20 campuses across the United States, shut down in 2019. The closure left thousands of graduate and doctoral students scrambling to find new education options and complete their degrees. The university's parent company, Dream Center Education Holdings (DCEH), had been searching for a buyer but was unable to secure one. This financial fallout resulted in significant challenges for Argosy students, who faced obstacles in transferring to new universities and obtaining refunds for their federal loans.
Argosy University had a history of financial irresponsibility and deceptive marketing practices. In 2013, the university settled charges with the Colorado Attorney General, paying $3.3 million in restitution and fines for misleading students about its accreditation status. In 2015, Argosy's parent company agreed to forgive over $100 million in student loan debt to settle claims of violating consumer protection laws. Despite these issues, the university remained operational until its closure in 2019.
The financial impact of the closure was widespread, affecting not only the students but also the university's creditors. In the lead-up to the closure, Argosy failed to distribute more than $9 million in financial aid to its students, and the university was cut off from federal student loan and grant funds. The court-appointed receiver, Marc Dottore, requested $13 million in federal student aid funds to pay stipends to students at Argosy University in Southern California, but it is unclear if these funds were ever distributed.
The fallout from the closure extended beyond financial concerns. Argosy students faced significant challenges in transferring to new universities, as many institutions were reluctant to accept graduate-level course credits earned elsewhere. Some universities that did accept transfer students may not have transferred all the credits earned, requiring students to retake courses and potentially delaying their graduation. Additionally, students reported receiving vague details and limited information about their options, further complicating their transition to new institutions.
In response to the closure, several higher education institutions stepped up to support Argosy University students. Schools like the Chicago School of Professional Psychology, Alliant International University, and Trident University International indicated a willingness to absorb students. The WASC Senior College and University Commission (WSCUC), Argosy's accreditor, published a list of schools offering "teach-out" programs, which are agreements that allow students to transfer credits and complete their degrees at other institutions. Despite these efforts, the closure of Argosy University disrupted the education of thousands of students and left many facing financial and academic challenges.
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Argosy University students' options for transferring to other institutions
Argosy University's sudden closure in 2019 left thousands of students scrambling to find ways to complete their education and get their degrees. Argosy's accreditor, the WASC Senior College and University Commission (WSCUC), published a list of schools offering teach-out programs to Argosy students. A "teach-out" is an agreement between the closed school and nearby schools for the fair transfer of credits to complete a program of study.
A dozen schools indicated a willingness to absorb students, including the Chicago School of Professional Psychology, Alliant International University, and Trident University International. Several other colleges across the country welcomed Argosy students, including Liberty University in Lynchburg, Virginia, which waived application fees and offered tuition discounts to complete degrees online. National Louis University in Chicago also visited Argosy's Tampa campus to reassure students that they were working on a plan to allow transfers to their Florida branch.
Argosy University also maintains a list of universities on its website that will accept transfer students. However, transferring graduate credits can be a difficult process, as universities generally limit the number of transfer credits to ensure the coherence of the program. Additionally, many universities won't accept graduate-level course credits earned at a different institution, and those that do may not transfer all the credits, requiring students to retake courses.
Students with federal loans taken out for Argosy University can apply for a closed school loan discharge, but this makes them ineligible for transfer. Students with private student loans should contact their lender to discuss payment plan options.
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Argosy University's accreditation status and the impact on students
Argosy University was a private for-profit university with campuses across the United States. It was owned by Dream Center Education Holdings (DCEH), LLC and Education Management Corporation (EDMC).
In 2009, students of Argosy University in Dallas filed a lawsuit alleging that recruiters had inaccurately informed them that the school would soon receive accreditation from the American Psychological Association (APA). At the time of the lawsuit, Argosy University Dallas had not applied for APA accreditation. The school had also not completed the accreditation process by the time the students graduated. Argosy officials rejected the charges of fraud, noting that the pursuit of APA accreditation for the Dallas campus was still underway. As of 2013, Argosy University in Dallas did not offer any degrees in clinical psychology and was not listed as part of the university's College of Clinical Psychology.
In December 2013, EDMC agreed to pay $3.3 million in restitution and fines to settle charges with the Colorado Attorney General that Argosy University had engaged in deceptive marketing practices. The settlement did not require EDMC to admit liability.
In November 2015, Argosy's parent company agreed to forgive more than $100 million of student loan debt to settle claims it violated consumer protection laws.
In March 2017, Education Management Corporation reported that they intended to sell the Argosy schools to the Dream Center, a Los Angeles-based Pentecostal organization. The transaction closed in November 2017.
In January 2019, the WSCUC (WASC Senior College and University Commission) ordered Argosy University to demonstrate why its accreditation should not be withdrawn, due to serious concerns related to its financial situation. A Show Cause proceeding was held on February 21, 2019, and another was scheduled for March 15, 2019.
On February 27, 2019, the U.S. Department of Education stated that they were cutting off federal funding to Argosy University due to its failure to pay credit balance refunds to students and parents. All Argosy campuses officially closed shortly thereafter, on March 8, 2019.
WSCUC officially withdrew Argosy's accreditation on March 17, 2019, except for limited conditions to facilitate the transfer of credit and program completion. Argosy's accreditor, WSCUC, published an official list of schools offering teach-out programs to Argosy University students.
The closure of Argosy University created serious challenges for students, especially those in their final term. Many higher education institutions scrambled to support Argosy University's students by accommodating more academic credits than usual and offering tuition discounts to help them complete the degree programs they had started. The Department of Education began notifying Argosy students that it would cancel their spring semester loans and update them about transfer options.
Students impacted by the closure can apply for a closed school loan discharge. However, this only applies to federal loans, and private student loans, Pell Grants, and GI Bill benefits are not eligible for discharge or refund.
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The role of the US Department of Education in Argosy University's closure
Argosy University was a private for-profit university with campuses across the United States. It was owned by Dream Center Education Holdings (DCEH), LLC and Education Management Corporation.
In 2019, Argosy University campuses were under receivership, and their accreditation was at risk. The US Department of Education cut off federal funding to Argosy University after it was discovered that the university had used $13 million of student loan money to cover payroll and other expenses. The Department of Education also began the process of identifying students who received federal direct student loans for the current term and intended to cancel those disbursements.
The Department of Education faced criticism for being unresponsive and ill-prepared to help Argosy students. A group of Democratic senators, led by Senator Richard J. Durbin, chastised the Department for failing to coordinate with Argosy's accreditor to ensure a "teach-out plan" was in place. This plan would have allowed students to complete their studies at comparable programs at other schools.
The Department of Education did take some steps to assist students affected by the closure. They created a special webpage with information related to the Argosy closure and the process for applying for a Closed School Discharge (CSD) of federal student loans. They also began notifying Argosy students that they would cancel spring semester loans and update them about transfer options.
In conclusion, while the US Department of Education played a role in Argosy University's closure by cutting off federal funding, they also faced criticism for not doing enough to help affected students. They did, however, provide some resources and information to assist students in the aftermath of the closure.
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Argosy University's controversial history and legal issues
Argosy University was a private, for-profit university with campuses across the United States. It was owned by Dream Center Education Holdings (DCEH), LLC, and Education Management Corporation. The university was formed in 2001 when Argosy Education Group, which had been acquiring various schools since 1992, was acquired by Education Management Corporation.
The university faced scrutiny and controversy on several occasions during its operation. In 2009, students at the Argosy University campus in Dallas filed a lawsuit alleging that recruiters had inaccurately informed them that the school would soon receive accreditation from the American Psychological Association (APA). While Argosy denied these charges, noting that the pursuit of APA accreditation was still underway, the school had not completed the accreditation process by the time the students graduated. In 2013, Argosy University faced allegations of deceptive marketing practices, leading to a settlement of $3.3 million in restitution and fines. The Colorado Attorney General alleged that Argosy University had led students to believe that their Ed.D. in Counseling Psychology degrees would be accredited by the APA and that graduates would be eligible to be licensed psychologists in Colorado, which did not appear to be true.
In 2017, Argosy University was acquired by the faith-based nonprofit Dream Center Foundation. At the time, the Education Department tentatively approved the sale but did not formally approve the institution's transition to nonprofit status. Argosy's finances suffered under the new ownership, and in 2019, the Education Department revoked Argosy's eligibility for federal financial aid and denied the change in ownership. This led to the abrupt closure of Argosy University campuses in March 2019, leaving graduate and doctoral students struggling to find new education options and complete their degrees.
The closure of Argosy University campuses also resulted in legal repercussions. Attorneys general from multiple states joined an agreement that secured student debt relief for former Argosy students, with a settlement of $2.1 million in student debt cancellation due to alleged fraud and deceptive marketing practices. The agreement alleged that Argosy falsely marketed itself as a nonprofit institution and provided misleading information to students. The series of events leading to Argosy's closure highlighted several major issues in higher education, particularly regarding the regulation of for-profit universities.
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Frequently asked questions
If you took out a federal loan, you can apply for a closed school loan discharge. If you have private student loans, contact your lender for payment plan options.
Argosy University's accreditor, WASC Senior College and University Commission (WSCUC), has published a list of schools offering teach-out programs to Argosy University students. Students can also transfer to other institutions, although they may need to retake some courses as not all credits may be transferred.
Argosy University campuses closed in 2019 due to financial issues and the loss of federal student aid. The university was accused of deceptive marketing practices and misleading students about its accreditation status.
The WSCUC has a list of WSCUC-accredited institutions welcoming inquiries from Argosy University students. The U.S. Department of Education Office of Federal Student Aid also has resources and webinars for Argosy University students.
