In January of this year, Dream Center Education Holdings—the parent company of Argosy and several other schools—entered into a federal receivership. A receivership occurs when a court appoints someone outside a company to control the company, because the company is in serious financial trouble.
When Dream Center Education Holdings entered receivership, it had not distributed the federal student aid stipends to students. It is not clear who has this money and why it has not been distributed to students. Yesterday, the Department notified Argosy University that it lost eligibility for federal student aid. That letter is here.
The Department of Education recently posted information related to its handling of the missing stipends here. The Department is asking students who have not received their stipend to contact Federal Student Aid.
If you have not received your federal student aid stipend, contact Federal Student Aid to explain that you have not received your stipend. Call 1-844-651-0077 between Monday and Friday, 8 a.m.–8 p.m. Eastern, or go online (StudentAid.gov/feedback).
What happens next? It’s not clear: different people are saying different things about how and when Argosy University will close, and what teach-out options will exist when the school closes. Students who are attending Argosy University when it closes or who withdraw shortly before it closes and who do not participate in a teach-out and do not transfer credits to a comparable program at another school can apply to have their federal student loans discharged. For more information about closed-school discharge and how to apply, see https://www.studentloanborrowerassistance.org/loan-cancellation/federal-cancellation/school-related/closed-school/.
Unfortunately, we don’t have any more information right now.