ST. PAUL — The money Argosy University had in the bank when it closed won’t all be used to repay students and taxpayers for financial aid the school used inappropriately, the St. Paul Pioneer Press reported.
Instead, much of the $4.4 million the institution had on hand could go to the court-appointed receiver and attorneys overseeing the wind-down of the for-profit college chain after its financial collapse.
In May, a federal judge was asked to approve more than $2 million in fees and expenses for those firms. The request includes $973,000 in legal fees and $28,000 in expenses for Dottore Cos., the firm acting as the schools’ receiver, essentially its financial steward.
Sunflower, one of the companies Argosy owes money to, criticized the request for fees and expenses as “exorbitant and excessive” in a legal challenge filed June 12.
Betsy Talbot, Minnesota Office of Higher Education manager of institutional registration and licensing, agreed with that characterization. Talbot is one of the state officials working to recover money Argosy received that was supposed to go to students.
Representatives from Dottore Cos. did not return a call seeking comment Wednesday. Officials in state Attorney General Keith Ellison’s office declined to discuss their efforts to recoup money from Argosy.
The school owed Minnesota students $1.3 million when it suddenly closed in March. Students at the Eagan campus were left without financial aid they were expecting to cover living and other expenses and had to scramble to find schools to continue their studies.