PHOENIX – Argosy University students were told in emails Wednesday that campuses across the country could close as soon as this week.
An email to Phoenix students from Phoenix Campus President Anthony Spano says the site is “at risk of closure this Friday, March 8” because of the school’s loss of federal aid access.
The emails from campus administrators say that unless a qualified buyer steps in, or another university comes on board to teach out the students, the campuses will close.
It’s unclear how likely it would be for either a buyer to step in or another university to teach out the students, and what happens next may vary depending on which campus a student attends.
If someone buys a campus, that campus’ students would be able to continue their studies “without interruption.” A transfer partner would also allow students to continue their studies.
But, without those options, the campuses have to shutter, the emails say.
“Should the campus close, we would work with our accreditors, state regulators and the U.S. Department of Education to provide options for our students,” Spano wrote in the email to students.
Similar letters have gone out to other Argosy campuses.
Argosy’s financial mess has grown over the past few months. After Argosy’s parent company, Dream Center Education Holdings, couldn’t pay its creditors, a federal court in Ohio appointed a receiver.
In February, The Arizona Republic revealed that thousands of Argosy students across the country had not been paid financial aid funds they were owed, to the tune of $13 million.
Since then, the U.S. Department of Education yanked Argosy’s eligibility to use federal aid programs, a significant threat to the university’s future.
On Monday, a court document filed on behalf of the receiver said Argosy and Dream Center had altered submissions to the U.S. Department of Education to get access to student financial aid funds, which were then spent on other expenses, like payroll.
The school has branches in 11 states, according to its website. It is based in Orange County, California.
Read more at usatoday.com.
