UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM
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CURRENT REPORT
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Item 8.01 Other Information.
On February 8, 2023, Aspen University, Inc. (“Aspen University”) received notification from the United States Department of Education (the “DOE”) that effective February 7, 2023 the DOE had placed Aspen University, a wholly-owned subsidiary of ̽»¨ÊÓƵapp, Inc. (“AGI”) on Heightened Cash Management 2 (“HCM2”). Under the HCM2 method of payment, Aspen University may continue to obligate funds under the federal student financial assistance programs authorized by Title IV of the Higher Education Act of 1965, as amended.
Heightened Cash Monitoring is a step that the U.S. Department of Education can take with institutions to provide additional oversight for a number of financial or federal compliance issues. A school placed on HCM2 no longer receives funds under the Advance Payment Method. After a school on HCM2 makes disbursements to students from its own institutional funds, a Reimbursement Payment Request must be submitted for those funds to the DOE. Consequently, Aspen University is estimating the next financial aid reimbursement received from the DOE will be delayed until late March 2023 at the earliest. Subsequent to the receipt of the first financial aid payment under HCM2, Aspen University will be able to submit for financial aid reimbursement once every 30 days. Reimbursement payments could be delayed if the DOE has findings upon review of each of our reimbursement files.
The letter from the DOE stated that the DOE acted in response to the Show Cause Directive from the Distance Education Accrediting Commission, which action AGI disclosed in a Form 8-K filed February 3, 2023.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits
Exhibit | Incorporated by Reference | Filed or Furnished | ||||||||
# | Exhibit Description | Form | Date | Number | Herewith | |||||
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
ASPEN GROUP, INC. | |||
Date: February 9, 2023 | By: | /s/ Michael Mathews | |
Name: Michael Mathews | |||
Title: Chief Executive Officer |