July 19, 2018
The Art Institute of Philadelphia
1622 Chestnut Street Philadelphia, PA 19103

Dear President Kane:

On July 19, 2018, the Middle States Commission on Higher Education acted as follows:

To note that on July 5, 2018, the institution informed the Commission that it ceased new enrollments as of July 2, 2018, and will close. To remind the institution of its obligation to seek prior approval, in accordance with Commission policy, of planned institutional closure. To further note that the institution failed to inform the Commission about any and all developments relevant to the terms of the change in ownership and legal status as directed in the Commission action of November 16, 2017. To require the institution to show cause, by August 31, 2018, as to why its accreditation should not be withdrawn. To note that the institution remains accredited while on show cause. The institution is required to present its case for continued accreditation by means of a show cause report, in lieu of the formerly requested monitoring report. To request that the show cause report include (1) submission of a substantive change request for approval of planned institutional closure (Standard II; Substantive Change Policy; Merging or Closing a Postsecondary Institution or Program Site Policy); (2) evidence of adequate financial resources, funding base, and plans for financial development adequate to support the institution and ensure orderly closure and the continued delivery of a quality learning environment and education experience (Standards III, IV, VI, Requirement of Affiliation 11); and (3) evidence of the institution operating as an academic institution with a chief executive officer with appropriate credentials and experience, administrative members with appropriate credentials and experience, and appropriate autonomy (Standard VII). To require that the institution resubmit certification by the related entities, Dream Center Foundation and Dream Center Education Holdings (DCEH), that they recognize the Commission's compliance requirements and will ensure that responsibilities of the related entities are fulfilled, including making freely available to the Commission accurate, fair, and complete information through disclosure of information required by the Commission to carry out its accrediting responsibilities (Related Entities Policy; Requirement of Affiliation 14). To note that the evidence provided must include a comprehensive, implementable teach-out plan with detailed descriptions of how, if the Commission withdraws accreditation or the institution closes, all students including any student requiring access to Title IV funding will be accommodated. In accordance with Commission policy and federal regulations, the teach-out plan must provide for equitable treatment of students to complete their education and include signed teach-out agreements that the institution has entered into with another institution. Approvals from any licensing or other legal entities as may be necessary must also be provided. To direct a prompt liaison guidance visit to discuss Commission expectations. An on-site evaluation will follow submission of the report. The purpose of the on-site evaluation is to verify the information provided in the show cause report and the institution's ongoing and sustainable compliance with the Commission's Requirements of Affiliation, accreditation standards, and policies. To note that the institution will be invited to appear before the Commission when it meets to consider the institution’s show cause report.

This action now appears on the institution’s Statement of Accreditation Status (SAS). This serves as the institution’s official notification of that action. If any of the information contained within the action appears to be factually incorrect, please send an email within 30 calendar days of the action to support@msche.org.

This action is a non-compliance action and includes a request for a show cause report and a visit. An explanation of this type of action is provided in the Commission's policy Accreditation Actions. The institution is invited to appear before the Commission when the Commission meets to consider the institution's show cause report. The procedures Show Cause Appearance Before the Commission Prior to Withdrawal of Accreditation is enclosed. As noted in these procedures, the institution must inform the Commission of its intent to appear before the Commission at least 14 days prior to the Commission meeting at which the adverse action will be considered.

This notification also serves as the Public Disclosure Statement (PDS), consistent with the Commission’s policy on Communication in the Accreditation Process, and it will be made publicly available on the Middle States Commission on Higher Education website in accordance with policy and federal regulation. The institution is also invited to submit an official statement in response to the above Commission action. Any statement must be sent to support@msche.org within 30 calendar days from the date of the action. Any statement received will be embedded within this notification and made available through it.

The following resources provide additional information that may be helpful to understanding the Commission’s actions and the institution’s accreditation status:

In accordance with policy and federal regulation, the Commission provides notification of decisions on non-compliance actions to the U.S. Secretary of Education, the appropriate state or other licensing or authorizing agency, and the appropriate accrediting agencies at the same time it notifies the institution, but no later than 30 days after it reaches the decision. The Commission provides notification of such decisions to the public through its website within 24 hours of informing the institution. Please ensure that the institution’s published references to its accreditation status align with Commission policy.

For questions about the Commission action, please contact the institution’s assigned Vice President staff liaison. Questions from the public about the institution’s accreditation status can be directed to communications@msche.org.

Sincerely,

Gary L. Wirt, Ed.D.

Chair