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Argosy University was a system of for-profit colleges owned by Dream Center Education Holdings (DCEH), LLC and Education Management Corporation.
On February 27, 2019, the US Department of Education stated that they were cutting off federal funding to Argosy University. According to Inside Higher Education, “The Education Department said that the roughly 8,800 students enrolled at Argosy campuses could seek to transfer their credits elsewhere or apply for loan cancellation in the event their campus shuts down.”
All Argosy campuses were officially closed on March 8, 2019.
The origins of Argosy University trace to three separate institutions: the American School of Professional Psychology, the Medical Institute of Minnesota, and the University of Sarasota. In the late 1970s, Michael Markovitz founded the Illinois School of Professional Psychology, which later changed its name to the American School of Professional Psychology. In 1976, Markovitz became the founding chairman of Argosy Education Group, which acquired the University of Sarasota in 1992. The University of Sarasota was a business and education-focused school and was founded in 1969. Six years later Argosy Education Group acquired the health profession training school the Medical Institute of Minnesota, which was established in 1961.
Education Management Corporation (2001–2017)
In July 2001, Argosy Education Group was acquired by Education Management Corporation. Two months later, Argosy Education Group brought together the American School of Professional Psychology, the Medical Institute of Minnesota, and the University of Sarasota under the Argosy University name.
Students of the Argosy University in Dallas filed a Texas lawsuit in 2009 alleging they believed university recruiters inaccurately informed students that the school would soon receive accreditation from the American Psychological Association (APA). The school had not completed accreditation process by the time the students graduated. At the time of the lawsuit, Argosy University Dallas had not applied for APA accreditation. According to a response from Argosy University’s parent company, EDMC, accreditation with the APA is not required for clinical psychology licensure in many jurisdictions, including Texas.
In March 2017, Education Management Corporation reported that they intended to sell the Argosy schools to the Dream Center, a Los Angeles-based Pentecostal organization. The sale faced scrutiny by regulators. The transaction closed in November 2017; EDMC said it would remain in operation to wind down the approximately fifty schools that had stopped accepting new students.
In 2019, USA Today reported that Argosy University campuses were under receivership and their accreditation was at risk. DCEH’s court-appointed receiver, Marc Dottore, has written to the US Department of Education that Studio Enterprise, a company designated to service former and current DCEH schools, “is taking service fees from the deal without providing any services, draining badly-needed cash from the operation.” The Washington Post reported that “being kicked out of the federal student-aid programs, known as Title IV, would sound the death knell for Argosy.”