Relief en route for con students at MN School of Business, Globe U
Alumni of the Minnesota School of Business and Globe University who took out federal loans or went through the disgraced college criminal justice program are now receiving financial aid.
On Thursday, the Minnesota attorney general’s office announced $ 23.6 million in federal student loan cancellation and an additional $ 15.6 million in restitution for approximately 3,000 former students who obtained illegal loans and 920 former students. who were enrolled in the college’s fraudulent criminal justice program.
The payments are part of a deal that resolves a lawsuit brought by the state of Minnesota against schools in 2014, alleging consumer fraud and illegal lending practices. After a settlement was reached in March, the US Department of Education and a federal bankruptcy court approved the payments, which began Thursday.
In a press release, Minnesota Attorney General Keith Ellison said he was “heartbroken” for students who took the school’s criminal justice program because they both lost their time and money and faced overwhelming debt.
“From today, the money will finally return to the pockets of the students who were swindled by the misrepresentation of MSB and Globe and who charged illegal interest rates,” he said. declared. “I am happy that everyone involved finally gets a closure and a measure of justice.”
The news comes after multiple court battles involving two lawsuits, multiple appeals and bankruptcy filings by schools. All Minnesota School for Business and Globe University sites closed in the state, Wisconsin, and South Dakota by 2017.
The Hennepin County District Court found in 2016 that schools had committed consumer fraud by telling students they could pursue a career as a police officer or probation officer by enrolling in a program leading to a degree in criminal justice that cost between $ 40,000 and $ 80,000. The program did not provide the training necessary to pursue these careers.
Ellison’s office also accused the two schools of violating Minnesota laws by granting student loans at “predatory” interest rates. The courts accepted, declaring the loans void and subject to full repayment.
Schools issued partial refunds totaling $ 3.7 million in 2018 before delaying further refunds when they filed for bankruptcy.
Students who enrolled in the schools’ criminal justice programs from 2009 to 2016 and who submitted relief requests will receive a federal student loan rebate.
Eligible students will also receive payments to reimburse them for almost the entire cost of what they paid to participate in the program and compensation for payments on federal student loans. Restitution will also be given to students who have taken out illegal loans through schools with interest rates as high as 18%.
Applicants will receive a notice from the US Department of Education regarding the loans.
The Attorney General’s office is also asking for federal loan forgiveness on behalf of students who attended another for-profit university, ITT Technical Institute, which closed in 2016. Ellison obtained private debt relief of $ 2, $ 6 million for these students in the colonies in 2019 and 2020, according to the release. He’s also looking to extend debt relief to students who have taken out loans to attend a for-profit Argosy University school.
Resources for students who were enrolled in schools can be found at https://bit.ly/39WkofR. Consumers with questions can call 651-296-3353 (metro area) or 800-657-3787 (outside of metro area).
Alex Chhith • 612-673-4759