“demonstrates a blatant disregard of the needs of its students”
This looks really bad. The school took millions in federal funds meant for students and allegedly used it to pay for other expenses.
The Chronicle of Higher Education reports:
Education Dept. Cuts Off Student-Aid Funds for Argosy U.
As Argosy University’s financial problems worsened, the troubled institution took millions in taxpayer dollars that were supposed to be disbursed to students, and instead used the money to pay its staff and vendors, according to the Education Department.
In a Wednesday letter to university officials, the department called Argosy’s action a “severe breach of the required fiduciary standard of conduct” that “demonstrates a blatant disregard of the needs of its students.” The department said that nearly $13 million in money meant for students — funds left over after tuition and fees are paid, typically used for living expenses — had been improperly kept from them.
In large part because of that breach of trust, the department wrote that it was revoking Argosy’s eligibility for federal Pell Grants and student loans, effective immediately, unless the university appeals the decision successfully. For Argosy — a for-profit university that attempted to convert to nonprofit status in 2017 — the loss of federal student-aid funds makes it likely that it will soon close. For-profit colleges rely heavily on taxpayer-funded financial-aid programs, and typically go out of business quickly if the spigot of federal money is shut off.
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