Christopher Magan
Minnesota Sens. Amy Klobuchar and Al Franken want federal student loan relief for students who attended Globe University and the Minnesota School of Business after a court found the for-profit schools defrauded students.
In a letter to the U.S. Department of Education, the Democratic senators urged federal officials to make all students who attended the Woodbury-based schools during the fraud eligible for “borrower defense to repayment,” a program that allows federal loans to be forgiven.
“We urge you to work quickly to address their cases and provide these current and former students with the relief to which they are entitled,” the senators’ letter said. It encouraged federal officials to notify all students enrolled in the schools since 2007 of the loan forgiveness program.
In September, a Hennepin County District Court judge found Globe and the Minnesota School of Business defrauded students by leading them to believe degrees from its criminal justice program would help them become police or probation officers. The ruling was the result of a lawsuit brought by state Attorney General Lori Swanson after hundreds of students filed complaints.
Last week, U.S. Department of Education officials said because of the fraud ruling they would not continue to allow the schools to participate in federal financial aid programs. Similar moves to cut off schools’ access to federal aid led to the recent closure of ITT Technical Institute and the sale of the Corinthian chain of colleges.
Jeff Myhre, a leader of Globe and the Minnesota School of Business, said in a statement last week that the federal decision was “unfortunate” because it would harm all of the schools’ students, not just those who were “unintentionally misled” in the criminal justice program that ended in 2014.
The schools also have other troubles.
After the fraud ruling, the state Office of Higher Education said it was pulling the schools’ authority to operate in Minnesota. That decision is being appealed.
Globe and the Minnesota School of Business will also likely be in need of a new oversight agency. The U.S. Department of Education is in the process of revoking the accrediting powers of the Accrediting Council for Independent Colleges and Schools, or ACICS, which oversees the two schools.