St. Paul, MN – The House Higher Education Finance and Policy Division held a public hearing today to discuss legislation to help Argosy University Twin Cities campus students recover financially from the college’s recent abrupt closure.
Representative Connie Bernardy (DFL-New Brighton), Chair of the Higher Education Finance and Policy Division is the chief author of the bill. The legislation announced today would give the Office of Higher Education the authority to release Argosy students from liability for any Minnesota SELF student loans for the spring 2019 semester, and pay them directly for other state financial aid.
Close to 1,000 students were enrolled at Argosy University Twin Cities when it abruptly shut its doors on March 8, about halfway through the spring semester. In addition to their education being disrupted, students also did not receive grant and loan funds they were depending on to pay living and miscellaneous expenses. The legislation discussed today would give the Minnesota OHE the authority to release Argosy students from liability for any Minnesota SELF student loans for the spring 2019 semester, and pay them directly for other state financial aid.
“Argosy students have been working hard to achieve a degree,” said Chair Bernardy. “This legislation will help impacted students partner with the Office of Higher Education so they get the financial relief they need.”
Current state statute requires OHE to disburse student aid funds directly to the college, which uses the funds to pay tuition and fees before sending the remaining credit balance directly to the student. In the case of Argosy, the entire amount of student aid was kept by the college, leaving students and their families short by thousands of dollars. In the same manner, SELF Loan funding was not disbursed to students, but until this plan was announced, students were still required to pay those loans back.
Legislation was approved by the House Higher Education Committee to help these students. The Minnesota Senate passed its version of the bill on Thursday.
Minnesota Office of Higher Education Commissioner Dennis Olson said that students will be contacted once the legislation is signed into law by Governor Walz.
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