OFFICE OF THE ATTORNEY GENERAL NOTIFIES FORMER ARGOSY, ART INSTITUTES STUDENTS OF LOAN FORGIVENESS OPTIONS
Argosy and Art Institutes Subject of Previous Settlement
(Hartford, CT) – In letters to 49 Connecticut online students of two recently closed schools, the Office of the Attorney General provided information about federal student loan forgiveness options.
Argosy University and the Art Institutes abruptly closed on March 8 after the federal government revoked both schools' eligibility for federal student aid. Neither school had physical campuses located in Connecticut.
Students at those schools may be eligible to have their federal student loans cancelled and any amounts already paid reimbursed. Eligible students include those active at the time of the closure, and those who withdrew up to 120 days before the closure, who were not able to complete their program of study and have not transferred credits into a comparable program at another school.
"Office of the Attorney General is reaching out directly to all 49 Connecticut students enrolled in Argosy and Art Institutes online programs to make sure they are fully aware of their loan forgiveness options. Students at these schools worked hard and took out loans to achieve their dreams. They must not be punished for the failure and mismanagement by school leaders," said Attorney General Tong.
Students impacted by the closure should visit the U.S. Department of Education's website for detailed information, including how to apply for a discharge of their loans and obtain academic records. If students elect to continue their degree at another school, they are not eligible for a discharge.
The Office of the Attorney General has a history with Argosy and the Art Institutes. In 2015, Connecticut and 38 other states reached a settlement with Education Management Corp. (EDMC) that required recruiting and enrollment reforms, and resulted in the forgiveness of $102.8 million in outstanding student loan debt held by over 80,000 students. At the time, EDMC operated both Argosy University and the Art Institutes. Control of the schools was later transferred to Dream Center Education Holdings, Inc. (DCEH), a religiously affiliated non-profit. Due to financial and other problems, DCEH is now being overseen by a court-appointed receiver.
Assistant Attorneys General John Langmaid and Joseph J. Chambers, head of the Finance Department, assisted Attorney General Tong with this matter.