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S.F. No. 2841 - Argosy University Closure (First Engrossment)
Author: Senator Paul T. Anderson
Prepared By: Joan White, Senate Counsel (651/296-3814)
Date: May 1, 2019


S.F. No. 2841 relates to the issues resulting from the closure of Argosy University on March 8, 2019.  This bill authorizes the Office of Higher Education (OHE) to resolve issues for affected students related to grants, scholarships, and loans that were not properly disbursed or credited.

Section 1, subdivision 1, defines terms.

Subdivision 2 provides the eligibility criteria for the assistance under this section. Generally, the eligible student must be a student who was enrolled in Argosy University and was awarded a grant, scholarship or educational assistance or borrowed from the SELF loan program, and has not received a refund, grant funds, or loan credit.

Subdivision 3, paragraph (a), allows the commissioner of OHE to establish procedures to assist eligible students, which authorize the commissioner to make direct payments of state grant funds and postsecondary child care awards, reverse disbursements of SELF loans, and inform recipients of Indian scholarships and GI Bill awards of the option to request payments directly.

Paragraph (b) allows the commissioner to require an eligible student to assign or subrogate to OHE any claims against Argosy arising from a state financial aid award or SELF loan.

Paragraph (c) requires the commissioner to establish a deadline of no later than October 31, 2019, after which time payments will no longer be processed.

Paragraph (d) requires the commissioner to post procedures and deadlines on the OHE website, and provide this information to the chairs and ranking minority members of the higher education legislative committees.

Paragraph (e) exempts OHE from rulemaking for purposes of establishing procedures under this subdivision.

Subdivision 4 requires a report by November 30, 2019, from the commissioner to the chairs and ranking minority members of higher education committees regarding actions taken under this section, and lists specific issues that must be addressed in the report.

Subdivision 5 expires this section on June 30, 2020.

This section is effective the day following final enactment.

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