Argosy University has failed to distribute more than $9 million in financial aid to its students, a court-appointed receiver told The Arizona Republic, and it's unclear where the money is.
The nonprofit Dream Center Education Holdings in 2017 acquired the Argosy chain from the for-profit Educational Management Corporation, as well as the company's Art Institutes and South University chains. Dream Center converted those institutions into nonprofits.
Since then Dream Center, a Los Angeles-based religious organization, has struggled to keep the chains viable. Last month a federal court appointed a receiver for the campuses. And Dream Center has moved to close or break up some of its institutions. For example, a private investment firm created a nonprofit a few hours before the end of last year to buy several Art Institutes and South campuses.
Argosy, which recently enrolled 17,600 students, has continued to struggle. An accreditor last month sanctioned the university, giving Argosy a year to "show cause" for why it should keep its accreditation. And the U.S. Department of Education placed restrictions on Argosy's ability to receive financial aid.
Yet those sanctions should not prevent Argosy from distributing aid to its students. Some students have been waiting more than a month for their aid payments, the Republic reported, and have been unable to buy groceries, make payments on their mortgages or buy books required for classes.