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Art Institute of Philadelphia closing; 171 jobs eliminated

The closure comes three years after a former owner of the Art Institute of Philadelphia agreed to forgive more than $100 million in student loans to settle allegations that it pressured unqualified students to enroll and take out loans.

Art Institutes

The Art Institute of Philadelphia, in Center City, is closing, according to the school's website.

The school's owner, Pittsburgh-based Dream Center Education Holdings LLC, on Monday filed a notice with Pennsylvania Department of Labor and Industry saying that the closure will eliminate 171 jobs effective Aug. 28.

The Philadelphia campus is among 30 nationwide being closed by Dream Center, according to the News & Observer in Raleigh, N.C.

Three years ago, Education Management Corp., a previous owner of the for-profit Art Institute of Philadelphia, at 1622 Chestnut St., and other Art Institute locations agreed to forgive $103 million in student loans under a multistate settlement of allegations that the company used high-pressure tactics to enroll unqualified students.