Colorado Attorney General John Suthers in December reached a $3.3 million settlement with Argosy University, after alleging that the Denver school deceived students in a doctoral psychology program. The state said Argosy misled students by telling them they would be eligible to become licensed psychologists and that the program was on track to be accredited by the American Psychological Association when that wasn't the case.
In the Colorado settlement, 40-year-old Heather McQueen of Denver is getting more than $107,000 of her student loans repaid by Argosy. She left the program and got her degree from a nonprofit school in San Francisco after discovering that the Argosy program didn't meet several Colorado requirements for psychologists.
Argosy and its Pittsburgh-based parent company, Education Management Corp., denied the attorney general's allegations. A spokesman said it "was important for us to cooperate" with the state and declined to comment on Ms. McQueen's case.