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For-Profit College in Denver to Pay $3.3-Million Over Deceptive Program

By  Andy Thomason
December 6, 2013

Argosy University’s Denver campus has agreed to pay $3.3-million in a settlement with the Colorado attorney general’s office, which found that the for-profit institution, a division of the Education Management Corporation, had intentionally misled students about one of its degree programs.

In an investigation, the attorney general’s office found that, starting in 2007, Argosy told students that it was seeking to have its doctorate of education in counseling psychology program accredited by the American Psychological Association, and that graduates of the program would be able to become licensed psychologists.

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Argosy University’s Denver campus has agreed to pay $3.3-million in a settlement with the Colorado attorney general’s office, which found that the for-profit institution, a division of the Education Management Corporation, had intentionally misled students about one of its degree programs.

In an investigation, the attorney general’s office found that, starting in 2007, Argosy told students that it was seeking to have its doctorate of education in counseling psychology program accredited by the American Psychological Association, and that graduates of the program would be able to become licensed psychologists.

Neither of those claims was true, a violation of the Colorado Consumer Protection Act, according to the attorney general’s office.

Many students dropped out of the program “saddled with debt,” said Deputy Attorney General Jan M. Zavislan in a written statement. In addition, he said, not one student who graduated from the program has been licensed as a psychologist.

Under the settlement, Argosy will pay back 66 students’ tuition and halt enrollment in the counseling-psychology program, among other actions.

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“At Argosy University student achievement is our top priority, and we are committed to constant improvement,” said Chris Hardman, vice president for communications at the Education Management Corporation, in a written statement. “It was important for us to cooperate with the Office of the Colorado Attorney General throughout this investigation and bring the matter to a final resolution.”

Argosy has more than two dozen branches across the country. Its parent corporation also operates the multicampus Art Institutes, Brown Mackie College, and South University.

We welcome your thoughts and questions about this article. Please email the editors or submit a letter for publication.
Law & Policy
Andy Thomason
Andy Thomason is an assistant managing editor at The Chronicle and the author of the book Discredited: The UNC Scandal and College Athletics’ Amateur Ideal.
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