Education Dept. steps in to help Argosy University students shorted $13 million in financial aid – The Washington Post
Weeks into the spring semester, students at Argosy University, a chain of career schools stretching from Virginia to California, are still waiting for $13 million in federal financial aid, according to court documents.
The delay is the latest development in the ill-fated acquisition of Argosy, South University and Art Institutes campuses by Dream Center Education Holdings. The Los Angeles-based nonprofit organization has struggled for two years to transform the flagging for-profit colleges into thriving nonprofit schools. Dream Center has spent months trying to close and sell some campuses, but could not meet its financial obligations and in January entered into receivership — a form of bankruptcy.
In light of those financial woes, the U.S. Education Department in January placed restrictions on Argosy’s ability to receive financial aid, requiring the school to provide additional paperwork. The Education Department provided the aid funds, but Argosy failed to give students the money left over after tuition is covered, known as loan credit balance stipends. Students often use those dollars to pay for living expenses.
And the $13 million remains unaccounted for.