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New effort to help Indiana students impacted by closing colleges

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Posted at 6:28 PM, Mar 26, 2019
and last updated 2019-03-26 18:53:29-04

INDIANAPOLIS — Central Indiana has been plagued with colleges closing their doors, often leaving students and graduates in the lurch.

Just last week, Call 6 Investigates told viewers about Art Institute graduates still waiting for diplomas months after the Indianapolis campus closed its doors in December 2018.

PREVIOUS | Art Institute graduates still waiting for diplomas |

Since RTV6's story aired, the newsroom has heard from even more former students who have yet to receive their Art Institute diplomas - including graduates Scott Biberdorf, Angela Gardner-Chism, and Miles Jones.

RTV6 took their concerns to State Senator J.D. Ford, D-Indianapolis, who filed Senate Bill 345 in an effort to help students left in limbo by closing colleges, many of whom are out thousands of dollars.

PREVIOUS | Harrison College closing all campuses in Indiana |

Even students who have received degrees told RTV6 they’ve had difficulty getting jobs in their fields, and that the Art Institute has a bad reputation.

“To not have anything to show for it is completely outrageous and it’s happening in our state,” Senator Ford said. “There’s no recourse for these students, so that’s very concerning to me.”

Ford saw RTV6's first story about the Art Institute in July 2018, when the Indianapolis campus was hit with a compliance warning from the Accrediting Council for Independent Colleges and Schools (ACICS) for not placing enough students in jobs.

“The story from RTV6 got me thinking, as well as the closure of ITT Tech,” Ford said.

RELATED | ITT Tech closes its doors after ruling |

Senate Bill 345 would require any for-profit college to pay an annual fee into a fund that would be used to help students left in the lurch by closing for-profit colleges.

“So that they can get some money back and recoup some of their losses,” Ford said. “It’s a sad situation, because you’ve got the financial loss, but you’ve also spent all this time and money preparing.”

The bill would address institutions that haven’t fulfilled their enrollment agreement and colleges that closed before the student completed their course of study.

“I just think that’s the right way to go, and I think it’s smart public policy,” Ford said.

The U.S. Department of Education provides the opportunity to apply for a closed school loan discharge, here.

Although, Senator Ford said otherwise, students have little recourse if a school closes before they can finish.

“That’s very concerning to me,” Ford said.

When most students enrolled at the Art Institute of Indianapolis campus, it was run by a for-profit chain which paid a $95 million settlement in 2015 due to fraud charges.

Dream Center Education Holdings took over Art Institutes and made the decision to close campuses, including Indianapolis. They requested nonprofit status from the U.S. Department of Education.

Call 6 Investigates is waiting to hear back whether the federal government has made a decision on the nonprofit status.

On Monday, Art Institute’s operator provided a statement regarding graduates missing diplomas:

We are working diligently to provide diplomas to all graduates of schools under Dream Center Education Holdings and are committed to ensuring that students receive them. Should students have questions or need assistance regarding their studies, please encourage them to visit https://www.artinstitutes.edu/closed-school-information-page [artinstitutes.edu] where they can find information about diplomas, transcripts, a phone number for our customer service team and more.”

Senator Ford wants families impacted by closing colleges to contact his office.

“I want them to know they have someone in the General Assembly that’s fighting for them,” Ford said. “Wouldn’t it be nice if Indiana had a fund? You might not get your total schooling back but at least something is better than nothing.”

Ford’s bill has not received a hearing, but he hopes to incorporate the language into another bill this session.