Information for Globe University and Minnesota School of Business Students

 

Minnesota School of Business/Globe University update

November 22, 2019

On Thursday, November 21, 2019, Globe University and the Minnesota School of Business filed for Chapter 11 federal bankruptcy protection.

Earlier this month, the Minnesota Supreme Court ruled that all former students enrolled in Globe University and Minnesota School of Businesss criminal justice programs since 2009 would be eligible for refunds totaling $33.7 million.

Last July 18, 2019, new guidelines were released by the Secretary of Education with the U.S. Department of Education to allow more students impacted by the closure of Minnesota School of Business and Globe University to qualify for a Closed School Loan Discharge of their federal loans.

In September 2016, the Hennepin County District Court found that students in Minnesota School of Business and Globe Universitys criminal justice program were misled, deceived and defrauded. As a result, OHE was required to revoke Minnesota School of Business and Globe Universitys state authorization. Minnesota School of Business and Globe University closed their doors permanently on September 14, 2017.

We do not expect students enrolled in programs other than the Criminal Justice program to receive a refund but our office will provide updates specific to the courts determination as information becomes available.

Students with questions can contact OHE at 651-259-3912.

Update on Closed School Discharge applications for MSB/Globe students

7/23/2019

Hundreds of additional students impacted by the closure of the Minnesota School of Business and Globe University (MSB/Globe) may qualify for a Closed School Loan Discharge under new guidelines released on July 18, 2019, by the Secretary of Education with the U.S. Department of Education.

This is great news for dozens of Minnesota students whose lives were disrupted when MSB/Globe closed their doors, said Commissioner Dennis Olson, Minnesota Office of Higher Education (OHE). I encourage all students who left these two schools during the new timeframe to find out if they now qualify to have some of their student loans forgiven.

In September 2016, the Hennepin County District Court found that students in MSB/Globes Criminal Justice program were misled, deceived and defrauded. As a result, OHE was required to revoke MSB/Globes state authorization. MSB/Globe closed their doors permanently on September 14, 2017.

A closed school loan discharge normally applies only if you withdrew (without completing your program) within 120 days of the schools closing date, or if you were attending when the school closed. For MSB/Globe students, the Secretary of Education has extended the timeframe to include any student who withdrew from the school on or after September 8, 2016.

Students can apply for a Closed School Discharge through their federal loan servicer. Students with questions can contact OHE at 651-259-3912.

Updates for Globe University and Minnesota School of Business Students:

• The Minnesota School of Business/Globe University has officially closed all Minnesota campus locations as of September 14, 2017. Students can access academic transcripts here.
• The Court has ordered restitution for approximately 1300 students who had been a part of the Criminal Justice program. The restitution process is on hold while Minnesota School of Business/Globe University appeal.
• The Court has ordered that the private institutional loans offered by Minnesota School of Business/Globe University were unlawful. The Court has prohibited the schools from making any new loans or collecting or attempting to collect on those loans. Students receiving requests to make payment on their private institutional loans from these schools should contact the Minnesota Attorney General's Office. There is further litigation in March 2018 to determine whether the schools will be responsible for refunding loan payments made back to students.
• The school has appealed the September 15, 2016 revocation order from our office. Both parties are waiting on an Administrative Hearing date. Once a final decision is made, the institutions will have a conditional approval with our office to operate for 365 days.
• The USDOE has placed the school on Heightened Cash Monitoring 2 status (HCM2). This status is a payment method to provide additional oversight of cash management. The most recent HCM2 letter includes the disclosure on the schools' main webpage and the disclosure required for each student to be eligible to receive their federal financial aid for the October quarter.
• These new disclosures are the result of the verdict and findings of fraud and that USDOE has made no guarantee that school will remain eligible for federal financial aid programs. If aid is revoked for this reason, it will be independent of OHE's revocation. Our office cannot guarantee the school will remain in operation through the anticipated one year.

Globe University and Minnesota School of Business Adjudicated of Fraud in Recruiting Practices for Criminal Justice Programs

On Thursday, September 8, 2016, a Hennepin County judge found Globe University and the Minnesota School of Business to have violated the Consumer Fraud Act and the Deceptive Trade Practices Act in the recruitment of students for their Criminal Justice programs. The judged order the school to stop using fraudulent recruiting practices. The next stage of the trial will determine restitution for impacted schools students and other injunctive relief.

Globe University and the Minnesota School of Business are regulated under the Private and Out-of-State Public Postsecondary Education Act. This Act mandates that the Office of Higher Education (OHE) not authorize any institution that has been adjudicated for fraud or misrepresentation, as outlined in Minn. Stat.§136A.685. OHE has begun taking steps to revoke Globe University and the Minnesota School of Business authorization to operate in Minnesota. We anticipate the institutions to be able to operate for approximately one year to teach-out currently enrolled students. It is not known at this time if there are other federal or state entities that will impact that timeline.

OHE is working on options for current students to either continue their education at Globe University and the Minnesota School of Business or at other Minnesota institutions. We are in the process of developing articulation agreements and transfer pathways with institutions across the state, which would make it easier for Globe University and Minnesota School of Business students to transfer and complete.

As Globe University and the Minnesota School of Business are still operating, students can still obtain a copy of their educational records from the institutions. Our office is working with Globe University and Minnesota School of Business to obtain educational records for current and former students. We will continue to post more information as it becomes available.

For students who have been affected by the recent closure of ITT Technical Institutes and the verdict against Minnesota School of Business and Globe University, please note:

Please be aware that neither the Office of Federal Student Aid at the US Department of Education nor the Minnesota Office of Higher Education is making outgoing calls regarding tuition recovery, federal loan discharges, or private loan discharges. If you receive a call from someone claiming they are from our office or the Office of Federal Student Aid, or claiming they can help you with filing paperwork for loan discharge or tuition recovery, please do not provide your personal information or make a payment for services. The services that are available to affected students are available at no cost.

The State of Minnesota does not have tuition recovery fund.

You may qualify for a Federal student loan discharge if you were considered a current student of ITT Technical Institutes or were directly affected by the verdict against Minnesota School of Business and Globe University. See more information with regards to Federal student loan discharge here:

• Find out what the criteria are for discharge and how you can apply
• Students who attended a school who believe they were defrauded or that their school otherwise violated applicable state law may be eligible for loan forgiveness

Information on possible schools you may transfer to is available at the College Search Tool or the Minnesota Office of Higher Education's College Search function.

Also, Minnesota State Colleges & Universities has set up a page for students affected by the recent closings.

Our office will post more information as information becomes available.

Globe University and Minnesota School of Business Given Notice of Revocation of Registration Status

On Thursday, September 8, 2016, a Hennepin County judge found Globe University and the Minnesota School of Business (Globe/MSB) to have violated the Consumer Fraud Act and the Deceptive Trade Practices Act. Globe/MSB was found in violation of Minn. Stat. §§ 325F.69, subd. 1, and 325D.44, subd. 1. The court found that students in the Criminal Justice Program were misled, deceived and defrauded during the admissions process.

As a result of this verdict, the Office of Higher Education (OHE) notified the institutions that it is no longer authorized to approve Globe/MSB's state authorization pursuant to Minn. Stat.§136A.685. OHE released an order that the institution's authorization be revoked, that the institutions stop enrolling new students and that Globe/MSB work with our office to teach-out currently enrolled students and create transfer pathways for students who are unable to complete their program within one year. It is estimated that approximately 1,700 students are directly affected as a result of the negative verdict and OHE's action to revoke the institutions' authorization.

On September 15, 2015 our office reviewed a statement by Globe/MSB of their intent to appeal the decision. Under Chapter 14 of Administrative Hearing law the institutions are permitted to request a hearing, which must be addressed by our office. At this time OHE has not yet received this request.

Pursuant to Minn. Stat §136A.65, subd. 7 Globe/MSB has been given a conditional approval for one year to permit Globe/MSB the opportunity to teach-out currently enrolled students who have already commenced coursework at Globe/MSB and/or to facilitate transfer agreements with other institutions. OHE is not permitted to extend this timeframe under current Minnesota law. For those students that have more than one year to complete their programs, our office is working on articulation agreements and transfer pathways with other institutions throughout Minnesota that will allow them to complete their program of study. Our office is working diligently to make the transition to a new institution as seamless as possible for Globe/MSB students.

As Globe/MSB are still operating, students can still obtain a copy of their educational records from the institutions directly. Our office is working with Globe/MSB to obtain educational records for current and former students.

The September 8, 2016 verdict and OHE's order to revoke may have an impact on the institutions' accreditation status and federal financial eligibility. OHE will continue to consult with the Attorney General's office and Globe/MSB on how to minimize disruption for students.

OHE will continue to post updates as more information becomes available.

For students who have been affected by the recent closure of ITT Technical Institutes and the verdict against Minnesota School of Business and Globe University, please note:

Please be aware that neither the Office of Federal Student Aid at the US Department of Education nor the Minnesota Office of Higher Education is making outgoing calls regarding tuition recovery, federal loan discharges, or private loan discharges. If you receive a call from someone claiming they are from our office or the Office of Federal Student Aid, or claiming they can help you with filing paperwork for loan discharge or tuition recovery, please do not provide your personal information or make a payment for services. The services that are available to affected students are available at no cost.

The State of Minnesota does not have tuition recovery fund.

You may qualify for a Federal student loan discharge if you were considered a current student of ITT Technical Institutes or were directly affected by the verdict against Minnesota School of Business and Globe University. See more information with regards to Federal student loan discharge here:

• Find out what the criteria are for discharge and how you can apply
• Students who attended a school who believe they were defrauded or that their school otherwise violated applicable state law may be eligible for loan forgiveness

Information on possible schools you may transfer to is available at the College Search Tool or the Minnesota Office of Higher Education's College Search function.

Also, Minnesota State Colleges & Universities has set up a page for students affected by the recent closings.

Our office will post more information as information becomes available.

Office of Federal Student Aid Info

The Office of Federal Student Aid has posted information on how to determine what constitutes a comparable program of study for purposes of a closed-school discharge.

New information has been posted on the closed-school landing page regarding the definition of comparable programs, including a Q and A.