State of Colorado v. Education Management Corporation, Argosy Education Group, Inc., a wholly owned subsidiary thereof d/b/a Argosy University.
Information regarding the impact of the closure of Argosy University and Art Institute on federal student loans
Colorado students may be eligible to have their federal student loans used to attend an Argosy University and the Art Institute cancelled and may be eligible to have amounts already paid on those loans reimbursed.
On March 8, 2019, Argosy and Art Institute announced their closure, effective immediately. Federal regulations provide that students who are actively enrolled in a school that closes, or students who withdrew up to 120 days before the school closed, and were not able to complete their program of study, can apply for a discharge of their federal student loans used to attend the closed school (a “Closed School Discharge”).
More information on the process for applying for a Closed School Discharge is available on the Department of Education’s closure website: https://StudentAid.gov/closures.
Importantly, when considering options, students should know that completing a comparable program of study through another school could disqualify one from receiving a Closed School Discharge. For example, if a student decides to complete a clinical psychology program at another school and transfer to another school’s clinical psychology using credits earned at Argosy, that student may not be eligible for a Closed School Discharge of 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. Students should carefully consider options and personal finances before applying for a Closed School Discharge or continuing a program of study at another school.
To receive a Closed School Discharge, students must submit an application to their loan servicer. A copy of the application form can be obtained from the loan servicer or download one here: https://studentaid.ed.gov/sa/sites/default/files/closed-school-loan-discharge-form.pdf. If needed, students can determine their current loan servicer and check how much is currently owed in federal debt at https://nslds.ed.gov/nslds/nslds_SA/. Should students decide to apply for a Closed School Discharge of federal loans, students should contact their loan servicer with any questions related to the application and Closed School Discharge process. There are no fees associated with applying for a Closed School Discharge.