Arizona Attorney General Mark Brnovich announced today an agreement to cancel certain outstanding debt for students who attended Argosy campuses before Argosy’s abrupt closure in 2019. In total, the settlement cancels nearly $2.1 million in “institutional debt” taken out directly from the institution by students at 12 campuses. The multistate deal includes relief of $1,478,481.72 for 24 Arizona residents and an additional 342 students from many states who attended Argosy’s online campus, which was headquartered in Arizona. The agreement also prevents further collection and negative credit reporting against affected students.
General Brnovich alleged that when Dream Center Education Holdings purchased Argosy in 2017, it falsely marketed to prospective students that it was a “nonprofit” institution. The Attorney General also alleged that the owners misled students about their ability to obtain degrees and provided misleading and incomplete information leading up to the school’s ultimate closure. The school issued so-called “institutional loan debt” to students who were enrolled based on these marketing and recruitment practices.
In 2019, due to mismanagement and insolvency, Argosy abruptly closed, upending the lives of Argosy students. The school ended up entering federal receivership, a process similar to bankruptcy that can limit the financial relief available to students and other aggrieved creditors. Once in receivership, ownership of the institutional student debt changed hands, but Attorney General Brnovich and the multistate group remained vigilant and secured the agreement with the entities that now control the debt.
Students who qualify for this debt relief will hear from Tuition Options.
Joining Attorney General Brnovich in the settlement are the attorneys general of Colorado, Florida, Georgia, Hawaii, Illinois, Minnesota, Tennessee, Utah, Virginia, and the State of Hawaii Office of Consumer Protection.
Original source can be found here.
