Argosy University Closes
Friday, March 8th, Argosy University campuses nationwide and online closed. The U.S. Education Department found that Argosy had been misusing federal financial aid funds meant for students, to pay salaries and other expenses. The misused funds totaled $13 million. While this amount seems shocking, should we really be surprised? As a marketing professional, I have known for quite some time that acquiring customers or students at an institution with a questionable reputation is extremely expensive. It is becoming very clear that all for-profit institutions depend almost entirely on selling their degrees to students who are willing to apply for financial aid on the first contact with the institution. And of course, nearly all students are admitted to these institutions. Since the federal government is now scrutinizing and removing the ability of some of these for-profits to accept federal financial aid, Argosy will be far from the last for-profit to close its doors. Read the full article from the Washigton Post.