3 ON YOUR SIDE (3TV) - It appears that things have gone from bad to worse for students who attend Argosy University.
Published reports state Argosy is on the hook to pay back millions of dollars of federal student loan money it appears they simply kept of misused. And now it appears the school may be closing.
With Argosy currently in a tailspin, that's not good for students like Devyn Davis.
“I just feel like I'm in such a crisis right now,” she said.
In a previous 3 On Your Side report, Davis told us the U.S. Department of Education had approved her for a $4,500 student loan, and that money had been forwarded to Argosy University to pay her tuition.
The balance of what was left for the semester was supposed to have been forwarded to Davis.
However, Argosy wound up keeping all of her money. And Davis isn’t alone. Argosy is suspected of keeping more than $9 million of students' federal financial aid money.
“The school has chosen to essentially steal our money,” Davis said.
The school is currently in "receivership" meaning a judge appointed someone to take over the school's assets and business operations.
And as we first reported, things grew worse for Argosy. The U.S. Department of Education caught wind of their financial troubles and banned the university from being eligible for any more federal financial aid.
But, 3 On Your Side has now learned there were warning signs the school was imploding financially.
Faculty members tell us their pay and benefits were hit and miss.
In fact, at least one email told the staff that their pharmaceutical benefits were suspended.
And in other emails regarding delayed or missed faculty paychecks, school officials downplayed the problem by telling staff that it's "...not a funding issue” but merely a processing error.
And then, there's this news that Argosy University is expected to shut its doors Friday. In an email, the receiver for Argosy tells 3 On Your Side:
“The campuses of Argosy University are not acquired by another higher education institution, or another institution does not agree to teach out the programs, upon court approval, they will close on Friday, March 8, 2019. "
For the more than 8,000 students like Davis, this whole situation is devastating.
“People like me, who are in their internship, we're done with our classes, so if we have to transfer to another school, we could have to take more classes, which turns out being more student debt for classes that we've already taken just to graduate with a degree,” she said.
Full statement from Argosy University receiver, Dream Center Education Holdings:
“We have been working day and night since Dream Center Education Holdings entered into receivership to find the best path forward for students. We have done everything that we can to save these locations.
“If the campuses of Argosy University are not acquired by another higher education institution, or another institution does not agree to teach out the programs, upon court approval, they will close on Friday, March 8, 2019.
“We are working with students, accreditors, state regulators and the U.S. Department of Education to provide as many options as possible for students, to include transfer to another higher education institution or student loan discharge.”
The U.S. Department of Education says if the school closes students may be eligible for 100-percent discharge of some federal student loans.
The Department of Education has more information regarding Argosy and student financial aid questions.