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Argosy University

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Argosy University
TypePrivate for-profit university
Established2001–2019
ChancellorCynthia Baum
Students17,600[1]
Location
United States
Websiteargosy.edu

Argosy University was a private for-profit university with campuses throughout the United States owned by Dream Center Education Holdings (DCEH), LLC and Education Management Corporation.

On February 27, 2019, the U.S. Department of Education stated that they were cutting off federal funding to Argosy University.[2] All Argosy campuses were officially closed shortly thereafter.[3][4][5][6]

History

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Origins

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The origins of Argosy University trace to three separate institutions: the American School of Professional Psychology, the Medical Institute of Minnesota, and the University of Sarasota.[7][8] In the late 1970s, Michael Markovitz founded the Illinois School of Professional Psychology, which later changed its name to the American School of Professional Psychology. In 1976, Markovitz became the founding chairman of Argosy Education Group,[9][10] which acquired the University of Sarasota in 1992. The University of Sarasota was a business and education-focused school and was founded in 1969.[11][12] Six years later Argosy Education Group acquired the health profession training school the Medical Institute of Minnesota, which was established in 1961.[7][13]

Education Management Corporation (2001–2017)

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In July 2001, Argosy Education Group was acquired by Education Management Corporation.[14][15] Two months later, Argosy Education Group brought together the American School of Professional Psychology, the Medical Institute of Minnesota, and the University of Sarasota under the Argosy University name.[7][8]

Students of the Argosy University in Dallas filed a Texas lawsuit in 2009 alleging they believed university recruiters inaccurately informed students that the school would soon receive accreditation from the American Psychological Association (APA). The school had not completed accreditation process by the time the students graduated. At the time of the lawsuit, Argosy University Dallas had not applied for APA accreditation. According to a response from Argosy University's parent company, EDMC, accreditation with the APA is not required for clinical psychology licensure in many jurisdictions, including Texas.[16] Argosy officials rejected charges of fraud, noting that pursuit of APA accreditation for the Dallas campus was still underway.[17][18] As of 2013, Argosy University in Dallas did not offer any degrees in clinical psychology, and was not listed as part of the university's College of Clinical Psychology.[19][20] In December 2013, EDMC agreed to pay about $3.3 million as part of the lawsuit. The settlement did not require EDMC to admit liability.[21]

In May 2010, the PBS program Frontline aired a program about for-profit universities called "College, Inc." which featured Argosy University among others.[18] Later that year, Argosy University was one of 15 schools named in a Government Accountability Office report. The report stated that recruiters at the school were found to have "made deceptive or otherwise questionable statements" when speaking with undercover applicants.[16][22] The GAO later revised its report, with Senator Mike Enzi (R-Wyoming) saying the changes made "undermine many of the allegations" in the original report but the head of the GAO maintained that "Nothing changed with the overall message of the report, and nothing changed with any of our findings."[23]

In 2011, Argosy University was investigated by the Florida Attorney General following eight consumer complaints. The school cooperated in the investigation.[24]

In 2012, the law school Western State University College of Law, which was founded in 1966 and originally acquired by Argosy in 2000, was renamed Western State College of Law at Argosy University.[25][26]

In December 2013, EDMC agreed to pay $3.3 million in restitution and fines to settle charges with the Colorado Attorney General that Argosy University had engaged in deceptive marketing practices. The Colorado Attorney General alleged that Argosy University led students to believe that the school was working to get its Ed.D. in Counseling Psychology degrees accredited by the American Psychological Association and that graduates would be eligible to be licensed psychologists in Colorado, when that did not appear to be true. The settlement did not require EDMC to admit liability.[27][28] Argosy University changed the Ed.D. in Counseling psychology curricula in order to meet psychology licensing standards.

In May 2015, EDMC was planning on closing in The Art Institute of California, Silicon Valley, a branch campus of Argosy University.[29] In November 2015, Argosy's parent company agreed to forgive more than $100 million of student loan debt to settle claims it violated consumer protection laws.[30]

In 2016, Argosy, Seattle stopped taking new students.[31]

Collapse and closure (2017–2019)

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In March 2017, Education Management Corporation reported that they intended to sell the Argosy schools to the Dream Center, a Los Angeles-based Pentecostal organization.[32][33] The sale faced scrutiny by regulators.[34] The transaction closed in November 2017; EDMC said it would remain in operation to wind down the approximately fifty schools that had stopped accepting new students.[35]

In 2019, USA Today reported that Argosy University campuses were under receivership and their accreditation was at risk.[36] DCEH's court-appointed receiver, Marc Dottore, wrote to the US Department of Education that Studio Enterprise, a company designated to service former and current DCEH schools, "is taking service fees from the deal without providing any services, draining badly-needed cash from the operation."[37] The Washington Post reported that "being kicked out of the federal student-aid programs, known as Title IV, would sound the death knell for Argosy."[38]

On February 7, 2019, Dottore asked the Department of Education for $13 million in federal student aid funds to pay stipends to students at Argosy University in Southern California.[39]

The Arizona Republic and Inside Higher Education reported that Argosy University failed to distribute more than $9 million in financial aid to its students, and "it's unclear where the money is."[40] The Washington Post subsequently reported that the "... U.S. Education Department cut off federal student loan and grant funds last week after learning Argosy used $13 million owed to students to cover payroll and other expenses."[41]

By mid-February, the WASC Senior College and University Commission (WSCUC), "students should be aware of the possibility that Argosy in Hawaii could abruptly close prior to the completion of their program."[42]

All campuses officially closed doors on March 8, 2019.

At that time of the closure, many higher education institutions scrambled to support Argosy University's students to help them complete the degree programs they had started at Argosy, including Concordia University Texas,[43] Ashford University, Indiana Wesleyan University, DeVry University, Bethel University,[44] Walden University,[45] and American InterContinental University,[46] among others.[47]

Following campus closings, Argosy teachers and staff said that they had not received their final paychecks.[48]

In 2022, Argosy University was one of 153 institutions included in student loan cancellation due to alleged fraud. The class action was brought by a group of more than 200,000 student borrowers, assisted by the Project on Predatory Student Lending, part of the Legal Services Center of Harvard Law School. A settlement was approved in August 2022, stating that the schools on the list were included "substantial misconduct by the listed schools, whether credibly alleged or in some instances proven."[49][50] In April 2023, the Supreme Court rejected a challenge to the settlement and allowed to proceed the debt cancellation due to alleged fraud.[51]

Former campuses

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  • Online
  • Phoenix
  • Pittsburgh
  • Art Institute of Hollywood
  • Art Institute - Inland Empire (San Bernardino, CA)
  • Art Institute - Santa Monica
  • Los Angeles
  • Orange County (Irvine, CA)
  • Art Institute of Orange County (Santa Ana)
  • Art Institute of San Diego
  • San Francisco Bay Area (Alameda, CA)
  • Western State College of Law at Argosy University (Irvine, CA)
  • Tampa
  • Atlanta
  • Chicago
  • New York
  • Twin Cities (Eagan, MN)
  • Dallas
  • Salt Lake City
  • Denver
  • Northern Virginia (Arlington, VA)
  • Seattle
  • Honolulu
  • Sarasota

Accreditation

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Argosy University was first accredited by the Higher Learning Commission in 1981 and then the WASC Senior College and University Commission in 2011 with its most recent review in 2018 at which time the school was placed on "show cause" status.[52]

Student outcomes

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According to the College Scorecard in 2018, Argosy online's graduation rate was six percent.[53]

References

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  1. ^ Fain, Paul (February 11, 2019). "Argosy Fails to Distribute $9 Million in Federal Aid". Inside Higher Ed. Archived from the original on February 12, 2019. Retrieved February 11, 2019.
  2. ^ "Education Department boots Argosy campuses from federal student aid program". www.insidehighered.com. Archived from the original on February 28, 2019. Retrieved March 2, 2019.
  3. ^ "Argosy University may close campuses across the country as soon as Friday". azcentral. Retrieved March 8, 2019.
  4. ^ "Students at Minnesota's Argosy University campus brace for possible closure". Star Tribune. Archived from the original on March 8, 2019. Retrieved March 8, 2019.
  5. ^ "Argosy University may close campuses across the country as soon as Friday". USA TODAY. Archived from the original on March 7, 2019. Retrieved March 8, 2019.
  6. ^ "Latest Updates on Argosy University - WASC Senior College and University Commission". www.wscuc.org. Retrieved March 8, 2019.
  7. ^ a b c Murphy, H. Lee (February 14, 2000). "Stock market turn a lesson for Argosy". Crain's Chicago Business. Archived from the original on September 28, 2015. Retrieved August 7, 2013.
  8. ^ a b Steve Stanek (November 11, 2001). "For-profit colleges transform higher education landscape". Chicago Tribune. Archived from the original on October 4, 2013. Retrieved August 7, 2013.
  9. ^ "Why Argosy". Argosy University. Archived from the original on October 4, 2013. Retrieved August 7, 2013.
  10. ^ "Executive Profile: Michael C. Markovitz, PhD". Bloomberg Businessweek. Retrieved August 7, 2013.[dead link]
  11. ^ Davis, Lauren (July 2, 1990). "University of Sarasota Passes Big Test". Sarasota Herald-Tribune. Retrieved August 7, 2013.
  12. ^ Bencivenga, Dominic (December 31, 1993). "The Souther Association has taken the University of Sarasota off probation". Sarasota Herald-Tribune. Retrieved August 7, 2013.
  13. ^ Smith, Scott D. (December 29, 2002). "Argosy U building new campus". Minneapolis St. Paul Business Journal. Archived from the original on October 7, 2013. Retrieved August 7, 2013.
  14. ^ "Company News". The New York Times. July 10, 2001. Archived from the original on March 5, 2016. Retrieved August 7, 2013.
  15. ^ Modzelewski, Eve (July 11, 2001). "Education Management Buys Rival". Pittsburgh Post-Gazette. Archived from the original on November 23, 2015. Retrieved August 6, 2013.
  16. ^ a b Hechinger, John (August 5, 2010). "Goldman Schools Students on Debt". BusinessWeek. Archived from the original on May 28, 2013. Retrieved August 7, 2013.
  17. ^ "Education Management Corporation Letter" (PDF). Frontline. April 22, 2010. Retrieved April 18, 2013.
  18. ^ a b Smith, Martin. "College, Inc". DVD Transcript. PBS. Archived from the original on June 1, 2012. Retrieved November 10, 2011.
  19. ^ "Argosy University, Dallas - Applied Psychology Non-Licensure Programs". Argosy University. Archived from the original on October 7, 2013. Retrieved October 7, 2013.
  20. ^ "Argosy University Programs - Clinical Psychology". Argosy University. Archived from the original on September 28, 2013. Retrieved October 7, 2013.
  21. ^ Coyne, Justine (December 10, 2013). "EDMC settles suit for $3.3M". Pittsburgh Business Times. Archived from the original on February 19, 2014. Retrieved February 26, 2014.
  22. ^ de Vise, Daniel; Kane, Paul (August 5, 2010). "GAO: 15 for-profit colleges used deceptive recruiting tactics". The Washington Post. Archived from the original on May 13, 2017. Retrieved August 7, 2013.
  23. ^ Anderson, Nick (December 8, 2010). "GAO revises its report critical of practices at for-profit schools". The Washington Post. Archived from the original on November 15, 2017. Retrieved August 24, 2017.
  24. ^ Travis, Scott (February 10, 2011). "For-profit colleges: Everest, Kaplan have highest number of complaints before Florida attorney general". Sun-Sentinel. Fort Lauderdale. Archived from the original on July 18, 2011. Retrieved August 7, 2013.
  25. ^ "Western State Argosy University". argosy.edu. Argosy University. Archived from the original on September 28, 2013. Retrieved August 7, 2013.
  26. ^ Gottlieb, Jeff (February 16, 2005). "O.C. Law School Gets Accreditation". Los Angeles Times. Archived from the original on October 5, 2013. Retrieved August 7, 2013.
  27. ^ Cotton, Anthony (December 5, 2013). "Argosy University Denver fined $3.3 million for deceptive practices". The Denver Post. Archived from the original on December 13, 2013. Retrieved October 23, 2014.
  28. ^ "Attorney General Suthers Announces Consumer Protection Settlement with Argosy University" (Press release). Colorado Department of Law. December 5, 2013. Archived from the original on October 24, 2014. Retrieved October 23, 2014.
  29. ^ "EDMC to close 15 Art Institute locations - Pittsburgh Business Times". Archived from the original on May 9, 2015. Retrieved April 30, 2016.
  30. ^ Lobosco, Katie (November 16, 2015). "For-profit college must forgive $103 million in student loans". Money.cnn.com. Archived from the original on October 4, 2016. Retrieved November 14, 2017.
  31. ^ "Argosy University, Seattle". argosy.edu. Archived from the original on May 29, 2016. Retrieved November 9, 2016.
  32. ^ "Large for-profit chain EDMC to be bought by the Dream Center, a missionary group". insidehighered.com. Archived from the original on March 4, 2017. Retrieved March 3, 2017.
  33. ^ "Art Institute campuses to be sold to foundation". washingtonpost.com. Archived from the original on March 3, 2017. Retrieved March 3, 2017.
  34. ^ "In EDMC sale, ties to for-profit education to face scrutiny". Pittsburgh Post-Gazette. Archived from the original on May 6, 2017. Retrieved May 17, 2017.
  35. ^ "EDMC completes sale of schools to Dream Center". Pittsburgh Post-Gazette. Archived from the original on November 17, 2017. Retrieved November 9, 2017.
  36. ^ "Argosy University is withholding financial aid. Students can't pay their bills". USA TODAY. Archived from the original on February 24, 2019. Retrieved February 20, 2019.
  37. ^ "Dream Center Receiver Says DeVos-Blessed Studio Enterprise Is Taking Money for Nothing". Republic Report. February 12, 2019. Archived from the original on February 14, 2019. Retrieved February 20, 2019.
  38. ^ "Education Dept. steps in to help Argosy University students shorted $13 million in financial aid". The Washington Post. Archived from the original on February 18, 2019. Retrieved February 18, 2019.
  39. ^ "Federal receiver overseeing Art Institute of Pittsburgh running out of money - TribLIVE.com". archive.triblive.com. Archived from the original on March 4, 2019. Retrieved March 2, 2019.
  40. ^ "Argosy Fails to Distribute $9 Million in Federal Aid - Inside Higher Ed". www.insidehighered.com. Archived from the original on February 12, 2019. Retrieved February 20, 2019.
  41. ^ Douglas-Gabriel, Danielle (March 10, 2019). "Argosy University closes its doors; students scramble to transfer". The Washington Post. Retrieved March 11, 2019.
  42. ^ Napier, A. Kam (February 14, 2019). "Argosy Hawaii students urged to secure academic, financial records". www.bizjournals.com. Archived from the original on March 9, 2019. Retrieved December 7, 2021.
  43. ^ "Transfer to CTX from Argosy University". Concordia University Texas. Retrieved March 29, 2019.
  44. ^ "Bethel is Committed to Helping Argosy Students Succeed". Retrieved March 19, 2019.
  45. ^ "Accredited Online College | Online Degree Programs | Online School | Walden University". www.waldenu.edu. Retrieved March 19, 2019.
  46. ^ "AIU EAC". www.aiuniv.edu. Retrieved March 19, 2019.
  47. ^ "Dream Center Education Holdings, LLC". www.dcedh.org. Retrieved March 19, 2019.
  48. ^ "Faculty speaking out after Argosy University closes its doors in the Twin Cities". KSTP. March 24, 2019. Archived from the original on March 25, 2019. Retrieved August 12, 2020.
  49. ^ "Government's Consolidated Opposition to Motions to Intervene" (PDF). Retrieved April 15, 2023.
  50. ^ Turner, Cory; Carrillo, Sequoia; Salhotra, Pooja (August 5, 2022). "200k student borrowers are closer to getting their loans erased after judge's ruling". National Public Radio. Retrieved April 15, 2023.
  51. ^ Hurley, Lawrence (April 13, 2023). "Supreme Court allows $6 billion student loan debt settlement". NBC News. Retrieved April 15, 2023.
  52. ^ "Statement of Accreditation Status, Argosy University". wascsenior.org. Western Association of Schools and Colleges. Archived from the original on August 12, 2016. Retrieved June 12, 2016.
  53. ^ "Argosy University-Phoenix Online Division". collegescorecard.ed.gov. Retrieved July 30, 2018.
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