The network of private art schools known as the Art Institutes in the United States has made an abrupt decision to close its eight campuses, affecting around 1,700 students. This announcement caught everyone off guard and has left currently enrolled students in a state of uncertainty regarding the continuation of their education.
The decision to close these schools comes after a tumultuous decade marked by increasing financial difficulties and frequent changes of ownership. The Art Institutes have experienced a steady decline in enrollment and financial instability, ultimately leading to this drastic decision.
Since 2017, the network changed ownership twice, with the Education Principle Foundation (EPF), a Delaware-based nonprofit, taking control in 2019. However, in August of the same year, a university in Savannah, Georgia, decided to sever ties with EPF following a unanimous vote by the boards of both organizations. These ownership changes raised concerns about the long-term viability of these schools, especially in the context of for-profit higher education.
In an email sent to Art Institutes students, the management attributed this massive closure to a series of operational issues that have accumulated over the past decade, both internally and externally.
Between 2011 and 2013, the parent company of the Art Institutes, Education Management Corp. (EDMC), based in Pennsylvania, witnessed a 16.3% decline in enrollment within the system, leading to the closure of 15 campuses in 2015. This period was also marked by legal action against EDMC by U.S. regulators, who accused the institution of fraudulent and predatory recruiting practices.
Despite offering a range of programs from fashion to culinary arts, the Art Institutes' problems have intensified over the years. In 2018, Dream Center Education Holdings (DCEH), the parent company of EDMC, sought to divest itself of its higher education assets. This move followed a class-action lawsuit settlement in which recruiters from the Art Institutes were accused of misleading prospective students by falsely advertising the institution as an accredited university.
The acquisition of the Art Institutes by the EPF in 2019, a nonprofit organization composed of several private investors, raised questions and doubts about transparency surrounding this for-profit college chain and its viability under new leadership in the higher education sector. To date, Art Institutes representatives have not commented on the situation or provided a concrete plan to assist affected students.
The official announcement from the Art Institutes mentions their collaboration with higher education partners to facilitate the transfer of students' academic credits to other institutions, but no concrete plan has been established for this transition.
Furthermore, the Art Institutes are not the only art schools to have closed recently due to financial difficulties and declining enrollment caused by the pandemic. In 2020, the San Francisco Art Institute, one of the oldest art schools in the United States, announced its permanent closure and eventually filed for bankruptcy in 2023, reflecting a broader trend in the country's art education sector.
Selena Mattei