Attorney General Miyares secures private debt relief for former Argosy University Students

Richmond, VA — On February 28, 2022, Attorney General Jason Miyares announced an agreement with the current owners of student debt taken out by Argosy University students to cancel outstanding principal and interest for students who attended in the years preceding the schools’ abrupt closure in 2019. A bipartisan group of nine other states joined the agreement, which will be filed in a federal receivership court. In total, the agreement cancels nearly $2.1 million in “institutional debt” taken out by students at 12 campuses directly from the school. The multistate deal includes relief of $24,353 for students in Virginia who attended Argosy’s Virginia campus, in addition to the relief obtained for Virginia students who attended Argosy’s online campus. The agreement also prevents the further collection and negative credit reporting against harmed students.

“Choosing what college to attend is a huge decision in a person’s life, and it can come with a financial burden. Argosy University’s misrepresentation to these students in the years leading to its abrupt closure was unfair, and I’m proud of the work the Office of the Attorney General has done to protect Virginia’s students and hold bad actors accountable,” said Attorney General Miyares.

As detailed in the agreement, Attorney General Miyares alleged that when Argosy was purchased by Dream Center Education Holdings in 2017, it falsely marketed to prospective students that it was a “nonprofit” institution. Attorney General Miyares also alleged that the owners misled students about their ability to obtain degrees and provided misleading and incomplete information leading up to the school’s ultimate closure. The schools issued so-called “institutional loan debt” to students who were enrolled based on these marketing and recruitment practices.

Mismanagement by Dream Center ultimately led to insolvency and closure of Argosy schools in 2019, which upended the lives of Argosy students in Virginia. The schools ended up entering federal receivership, a process similar to bankruptcy that can limit the financial relief available to students and other aggrieved creditors. Once in receivership, ownership of the institutional student debt changed hands, but Attorney General Miyares and the multistate group were able to secure today’s agreement with the entities that now control the debt.

Joining Attorney General Miyares in the settlement were the attorneys general of Minnesota, Arizona, Colorado, Florida, Georgia, Illinois, Tennessee, and Utah, and the State of Hawaii Office of Consumer Protection. The agreement will be filed in the Ohio federal court overseeing the receivership.