The U.S. Department of Education announced Thursday it will offer support to students of Argosy University Seattle and the Art Institute of Seattle, which both abruptly closed last week shortly before the end of the quarter.
The universities were owned by Dream Center Education Holdings. Many of the nonprofit’s schools were acquired by a new company, but that business decided it didn’t want to keep Argosy University and several Art Institute campuses.
The department says it is in the process of automatically cancelling disbursements for students receiving federal loans and adjusting student loan balances to reflect the cancelations. Students do not need to actively cancel their loans.
If students were enrolled on or after November 8, 2018, they may be eligible for closed school loan discharge, which means they won’t be obligated to repay some or all of the remaining amount owed on a loan, according to the department. If students receive the discharge the record of the loan will be deleted from their credit reports.
Officials also plan to post a schedule of webinars to studentaid.gov/closures in the coming days to assist students.
Students can learn more about the loan discharge process, how to obtain academic records, and transferring credits on the department’s website.