Home News Art Institute deal left Dream Center in ‘dire’ situation, receiver says – Education Dive

Art Institute deal left Dream Center in ‘dire’ situation, receiver says – Education Dive

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As students await delayed aid payouts, the manager of Dream Center’s assets says it was forced to pay for services it never received.

Dream Center Education Holdings (DCEH) and its remaining assets, including several Art Institutes, face a “dire” cash shortage and lack funds to pay for operations and federal aid stipends to students, according to Mark Dottore, the court-appointed receiver managing DCEH assets.

Dottore told Education Department official Diane Auer Jones in a letter dated Feb. 7 that the DCEH entities only had $3.8 million left to fund necessary services after a Feb. 1 payroll payment. Dottore added that “the most critical need” was to pay $13 million in stipends owed to Argosy University students.

He asked Jones to waive restrictions on the university placed by the department under its Heightened Cash Monitoring 2 system and release $13 million of $21 million in available funds.

Meanwhile, students and the Ed Department have raised questions over why the trail of federal aid funds is proving so difficult to follow.

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