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Dive Brief:
- The decades-old Art Institutes colleges are facing potential insolvency a little more than a year after the former for-profit chain was acquired by the faith-based Dream Center Foundation. The nonprofit reportedly completed a deal to transfer ownership to another organization.
- Struggling under the debt load it took on along with the college chain, Dream Center Education Holdings (DCEH) has circulated a plan to transfer control of the chain to another nonprofit, Education Principle Foundation, according to a proposal sent to one of its accreditors. Higher ed regulator Washington Student Achievement Council (WSAC) designated the Art Institute of Seattle “at-risk” of closure late last week and this week suspended its authorization after a surety bond to protect student tuition was canceled. The suspension means the school can operate but cannot recruit or enroll new students.
- On Monday, DCEH Chairman Randall Barton told employees that the organization, with the help of the U.S. Education Department, had reached a deal to transfer ownership, according to an email obtained by the Republic Report. An Ed Department spokesperson told the Pittsburgh Post-Gazette that DCEH no longer holds an ownership position in “most” Art Institutes. Dream Center and the Ed Department did not reply to Education Dive’s request for comment.
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