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The Art Institute of Pittsburgh was a private art and design school located in Pittsburgh, Pennsylvania. It offered a variety of degree programs in fields such as graphic design, fashion design, photography, and culinary arts. The school was part of the Art Institutes system, which had several campuses across the United States.
However, in recent years, the Art Institutes faced financial difficulties and was subject to closures and litigation. In 2018, the Art Institute of Pittsburgh officially ceased its operations. Students who were enrolled were provided options to transfer to other institutions or complete their studies through various arrangements.
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The Art Institute of Pittsburgh was part of The Art Institutes, a private for-profit system of art schools in the United States, which closed down in September 2023.
In 1968, the Pittsburgh-based Education Management Corporation (EDMC) acquired the Art Institute of Pittsburgh, later creating additional schools in The Art Institutes system.
Enrollment in the online division and EDMC’s other online programs ballooned from 7,900 in 2007 to 42,300 in 2012, largely due to practices that devoted more per-student expenditures to marketing ($4,158) than on education ($3,460). In 2008, the Art Institute of Pittsburgh briefly became one of the largest arts colleges in the United States (factoring in online enrollment).
In 2009, EDMC had an initial public offering, with Goldman Sachs assuming a majority position. Emphasis throughout the EDMC system shifted increasingly toward shareholder profits with cost-cutting measures resulting in larger classes, fewer student services, and a standardized curriculum throughout the system. This standardization removed the need for resident experts and curriculum developers at the individual colleges.
In 2010 enrollment began to drop, in part due to the falsification of records. Whistleblowers within the company sued the institute due to practices at the online division, and were later joined by the United States Department of Justice. Dramatic drops in enrollment led to massive layoffs in the online division.
In 2013, Payscale.com found that the institute provided the worst return on tuition of all institutes of higher learning surveyed. According to disclosures the college was required to provide to the Department of Education, overall graduation rates fell to 39% in 2012, while graduation rates among Pell grant recipients were still lower at 27%. The graduation rate fell substantially further in 2014 from 39% to 24%.
New owners took control of EDMC in 2015, as EDMC entered into a debt-for-equity swap with its current owners, giving up the majority of their stock to creditors with whom they broke loan covenants.
