Numerous career colleges owned by Education Management Corp (EDMC), including 31 Art Institute campuses, are being bought by the Dream Center Foundation (DCF), a charitable organization based in Los Angeles, in a deal that was announced on Mar. 3.

EDMC was once the largest for-profit college chain which had more than 150,000 students enrolled in fields of culinary arts, design, education, fashion, information technology, media arts, psychology, behavioral science, and health sciences at 102 locations around the world and 31 of which in the U.S. However, after years of switching between being privately held and publicly held, the chain struggled to maintain 65,000 students. The decrease in the student body is only one sign of a collapsing for-profit organization. Recently, EDMC closed its ITT Technical Institutes, Corinthian Colleges, Brown Mackie University and many other institutes, in addition to the sale of the University of Phoenix.

DCF, a nonprofit foundation, has funded programs that primarily provide job training, emergency food, medical services, housing and other services as well as support for victims of human trafficking for the homeless, veterans and poor children. By acquiring organizations for higher education, the program desires to provide more opportunities for proper education by purchasing, for an undisclosed amount, Argosy University (AU), South University (SU)and its art institutes and converting them into nonprofits. While AU centers on psychology and mental health treatment, SU focuses on medical and health programs.

“We actually have been looking for a higher education organization to affiliate with or acquire for three years now,” said Managing Director of DCF Randy Barton, “we feel the Art Institutes have a good history, despite the last few years, and we’ll be able to turn that back around.”

When asked about the cause of EDMC’s decline in student enrollment, Mark EcEachen, president and chief executive of EDMC, announced that the company had undermined the classroom experience by cutting expenses. Regardless of its struggles, EDMC entertained none other than DCF’s offer, even some that offered a higher bid. According to EcEachen, the company is more than willing to complete the transaction due to “the passion and commitment that these folks [DCF] have.” EcEachen applauded DCF’s mission of “reinvestment in the classroom, which… means a more motivated faculty and staff” and will ultimately lead to a “good student experience.” McEachen predicted that DCF will raise money for scholarships and improve operations with student satisfaction as the priority.

The university operations will be managed by Brent Richardson, the former chairman of Grand Canyon Education who led the transition of Grand Canyon University into a for-profit school with an appalling internet presence. Richard is now planning to lead the transformation of three EDMC universities into nonprofit universities under censuring criticism from the Education Department that is skeptical about the possibility that DCF, similar to the Center for Excellence, will furtively operate with the goal of financial benefit.

DCF anticipates closing the sale this summer. McEachen stated that faculty members will retain their jobs after the transaction is made.