Attorney General Andy Beshear, office announced Monday that Kentuckians attending two recently closed for-profit online schools may be eligible for federal student loan forgiveness.
Beshear
Argosy University and Art Institutes, abruptly closed March 8 after the federal government revoked Argosy’s eligibility for federal student aid.
Eligible students include active students, and those who withdrew up to 120 days before the closure, who were not able to complete their program of study and have not transferred credits into a comparable program at another school.
“My office is reaching out directly to notify more than 80 impacted students whose schools have closed,” said Beshear. “We are providing information and support to help ensure each student has the resources they need to apply for federal loan forgiveness if they choose to do so.”
Beshear said neither school had brick-and-mortar campuses in Kentucky, but both enrolled Kentuckians in their online programs. Both schools are owned by the Dream Center Education Holdings, Inc., which has been operating under a federal receivership since January.
Students impacted by the closure should visit the Department of Education’s website, https://StudentAid.gov/closures for detailed information, including how to apply for a discharge of their loans and obtain academic records. If students elect to continue their degree at another school, they are not eligible for a discharge.
Since taking office, Beshear’s consumer protection team has secured more than $5.2 million in loan forgiveness and cash restitution for thousands of Kentucky students attending for-profit colleges.
In January, Beshear announced that for-profit education company Career Education Corporation (CEC) agreed to reform its recruiting and enrollment practices and forgo collecting more than $2.3 million in debts owed by more than 1,300 Kentucky students.
As a member of the CEC multistate’s Executive Committee, Kentucky received nearly $200,000 that will go to the state’s General Fund for lawmakers to appropriate during the 2020 legislative budget session.
Last year, the Office of Attorney General won its case against American National University (formerly known as National College) in Fayette Circuit Court, alleging that National College violated the Kentucky Consumer Protection Act by advertising false and misleading employment rates for its graduates. The school has appealed the judgment.
Students who believe a private college has misled them or whose loan servicer has treated them unfairly can contact Beshear’s office at 502-696-5300, or by completing an online complaint form.
Beshear also encourages student borrowers to be wary of fraudulent debt relief services and to report solicitations to the Office of the Attorney General
Office of the Attorney General
