Earlier this month, a regional accrediting agency blocked the Education Management Corp.’s plan to sell the Art Institute of Philadelphia and the Art Institute of Pittsburgh to a Los-Angeles nonprofit.
In March, EDMC announced plans to sell 31 Art Institute schools, along with the South University and Argosy University educational systems to the Dream Center, a nonprofit religious organization associated with the Pentecostal Church. The move would convert EDMC systems from for-profit to nonprofit status.
Before being finalized, the sale must be approved by multiple regional and national accreditors. In its June 22 meeting, Middle States Commission on Higher Education (MSCHE), which accredits the Art Institutes’ locations in Philadelphia and Pittsburgh, rejected the proposed change “because of insufficient information and evidence conducive to Commission review.” The institutions can resubmit their request to the commission once they provide additional materials.
MSCHE also recently placed the Art Institute of Philadelphia on warning status after the institution underwent its decennial self-study and site visit. The Pittsburgh location, which is not on warning, is on a different schedule and as a result has not undergone a similar review at this time.
The Dream Center and EDMC did not respond to requests for comment.
EDMC saw the same rapid rise and fall in enrollments that many other for-profits experienced in the wake of the recession. At its peak, the organization enrolled 157,000 students across its systems. Capitalizing on surging student enrollments, for-profits were able to charge hefty tuitions. Yet many were criticized for leaving graduates with heavy debt burdens and degrees that were at times not recognized by employers.
