Press Release

Attorney General Ellison issues a statement on the abrupt closure of Argosy University’s Twin Cities campus

The Minnesota Attorney General has issued a statement to inform Minnesota students of potential options they have in light of the abrupt closure of Argosy University’s Twin Cities campus on March 8, 2019. “It is deeply troubling that hard-working students who took out student loans to further their education have had their education and livelihoods jeopardized by the sudden closure of Argosy by its owners,” Attorney General Ellison said.

Argosy University’s Closure

Argosy was owned by a California non-profit corporation, the Dream Center Foundation but, in January, Dream Center suddenly announced that it was entering “receivership,” in which a third party is appointed to take control of the company to manage and sell off assets. Subsequently, the U.S. Department of Education announced on February 27 that it was denying Argosy’s prior application for change of ownership and revoking the school’s eligibility to receive federal financial aid due to its failure to meet financial responsibility standards. As part of its revocation of Argosy’s eligibility for federal financial aid, the U.S. Department of Education found that Argosy mishandled federal student aid funds and student stipends. Argosy confirmed that its Twin Cities campus would close on March 8.

The Department of Education has also reported that it is in the process of identifying Argosy students who were disbursed federal loans for the current term and cancelling those disbursements. The Department states that the cancellation of these disbursements is being done automatically, with adjustments made to students’ loan balances to reflect the cancellation. For current Pell Grant recipients transferring to a school and starting classes before July 1, 2019, the Department states that the financial aid office of students’ new schools will be able to determine the student’s remaining 2018-19 Pell Grant eligibility.

Transfer Options for Impacted Students

Students who were currently attending Argosy should carefully assess their options in light of Argosy’s abrupt closure. If students plan to continue their studies in their current program, the Minnesota Office of Higher Education (“OHE”) is working on finding transfer options and other support for students affected by the closure. If you would like information related to these issues, you should consult OHE’s Information for Argosy University webpage.

If you have additional questions—including for example, about obtaining official transcripts, state financial aid, or specific programmatic concerns—you should contact OHE, which can be reached as follows:

Minnesota Office of Higher Education
1450 Energy Park Drive, Suite 350
St. Paul, MN 55108-5227
Phone: (651) 642-0567
Toll-Free: (800) 657-3866

Closed School Discharge of Your Federal Student Loans

The U.S. Department of Education has posted information regarding options for Argosy students with federal student loans. This page includes information about the closure and information about “closed school discharge,” which is a mechanism for students who were currently attending Argosy or withdrew 120 days before closure to apply for discharge of all federal student loans used to attend the school.

Students should know, however, that they are generally not eligible for closed-school discharge if they:

withdrew more than 120 days before the main campus or branch of the main campus’s closure;
are completing their program through a teach-out agreement with the closed school, or are transferring the credits they earned at the closed school to a comparable program at another institution; or
have completed all the coursework for their program.

If you are considering closed-school discharge, you should be aware that completing a comparable program of study through another school could disqualify you from receiving a closed-school discharge. For example, if you decide to complete a program in your field of study at another school and you transfer credits earned at Argosy, you will not be eligible for closed-school discharge of your Argosy federal loans. For some people, having their loans discharged will be preferable to continuing their programs of study and being obligated to repay the student loan debt accrued at their school. You should carefully consider your options and personal finances before continuing your studies or applying for a closed-school discharge.

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The Minnesota Attorney General’s Office is also monitoring Dream Center’s federal receivership and coordinating with other agencies and state attorneys general concerning Argosy’s conduct and options for former students and employees of Argosy.

For more information about borrower rights related to student loans, including student’s right to apply for closed-school discharge, students can consult this Office’s Student Loan Handbook. To contact the Attorney General’s Office to voice complaints or issues concerning Argosy, students can contact the Office as follows:

Office of Minnesota Attorney General Keith Ellison
(651) 296-3353 (Twin Cities Calling Area) or (800) 657-3787 (Outside the Twin Cities)
(800) 627-3529 (Minnesota Relay)