U.S. Department of Education Takes Steps to Inform and Assist Students Impacted by Closures of Argosy University and Select Art Institute Locations

Archived Information

U.S. Department of Education Takes Steps to Inform and Assist Students Impacted by Closures of Argosy University and Select Art Institute Locations

The U.S. Department of Education (Department) is swiftly working with Argosy University (Argosy) and The Art Institute (Ai) officials, requisite accreditors, and state authorizing bodies across 12 states to coordinate closed-school information and resources for impacted students. These actions follow a court decision on March 12 about the emergency motion to sell, transition, or close Argosy and Ai, which essentially said the receiver’s motion became null and void once the receiver took steps to close the schools on March 8, 2019.

Throughout this unfortunate situation for students, the Department has emailed students and posted notices for students at StudentAid.gov/dreamcenter. Information explains this developing situation to students, describes actions the Department has taken, and shares information about resources for students, including attending transfer fairs in various states.

The Department has identified Argosy and Ai students who were disbursed a federal student loan for the current term. The Department is in the process of automatically cancelling those disbursements and adjusting students’ loan balance to reflect the loan cancellation. The Department is emailing students to explain that this action is being taken on their behalf and informing students they do not need to take any action related to their loan(s) being cancelled.

Yesterday, on StudentAid.gov/closures—the primary portal for information about school closures—the Department posted a fact sheet for Argosy and Ai students that includes information about their automatic loan cancelation for the current term, their options, how to obtain their academic records, how to apply for a closed school loan discharge, and common closure-related Q&As. The closure site also includes a spreadsheet listing the specific Argosy and Ai school closures—StudentAid.gov/dream-center-closures—and an updated list of transfer fairs.

The Department will email students to make them aware of the online resources and explain their options, and in the coming days, a schedule of webinars for students will be added to the closure site. Additionally, the Department continues to coordinate efforts and communications to students with state licensing and accrediting partners.

Who :

U.S. Department of Education

What :

Takes steps to inform and assist students impacted by closures of Argosy and select The Art Institute

When :

Yesterday and as additional information becomes available.

Where :

In the case of Argosy and select Art Institutes or any institution that precipitously closes, there are two key options for students:

  • Apply for a Closed School Loan Discharge: If a student attending Argosy or The Art Institute that closed while he or she was attending or soon after the student withdrew, and he or she did not complete the program of study, the student may be eligible for a closed school loan discharge. A closed school loan discharge is a 100-percent discharge of the Federal Direct Loans, Federal Family Education Loan Program Loans, or Federal Perkins Loans the student took out to attend the closed school and a reimbursement of amounts he or she may have already paid to the government.
  • Transfer Credit to Another Institution: Instead of applying for a closed school loan discharge, a student may wish to keep the credits he or she has earned from Argosy and The Art Institute and transfer those credits to another school with a comparable program. If a student chooses to transfer into a comparable program offered by another school, that school will evaluate the Argosy and/or The Art Institute course work and will decide whether to give the student credit for the work already completed, and what courses he or she would need to take to complete his or her program of study.

If a student transfers the credits they have earned at Argosy and The Art Institute toward a comparable program at another school, he or she will not be eligible to receive a closed school loan discharge.