Amid growing scrutiny, Dream Center receiver says Title IV funds ‘not missing’ – Education Dive
A report from the manager of the organization’s assets offers few answers but suggests he is asking the Ed Department for advances on funds.
Ordered by a court to account for millions of dollars in unpaid student loan stipends, the man in charge of Dream Center Education Holdings’ (DCEH) assets said in court filings Tuesday that the money to pay students essentially doesn’t exist — at least not yet.
Mark Dottore, the court-appointed receiver handling DCEH’s estate, explained in a report to a federal district court in Ohio that DCEH’s Argosy University, specifically, owes students $13 million in stipends and must pay up-front under the U.S. Department of Education’s Heightened Cash Monitoring 2 (HCM2) regulations. However, DCEH “never had the money,” he wrote. Because HCM2 requires institutions to pay out student stipends and get reimbursed from the department, DCEH, short on funds, couldn’t make the payments.