ST. PAUL — Hundreds of students who attended Globe University and the Minnesota School of Business may now be eligible to have their student loans forgiven.
Attorney General Keith Ellison said Thursday, Aug. 8, the U.S. Department of Education approved Minnesota’s request to allow all students who withdrew from the schools following their September 2016 fraud finding to apply for federal loan forgiveness.
“No one who had to withdraw from a school because of the school’s wrongdoing should be saddled with federal-loan debt that keeps them from affording their lives,” Ellison said in a statement announcing the decision.
A Hennepin County District Court judge ruled in 2016 the for-profit institutions defrauded students by leading them to believe the schools’ criminal justice programs would help them get careers as police and probation officers. But degrees from the schools would not help students meet the requirements for those jobs.
After the fraud finding, the state Office of Higher Education pulled the schools’ ability to operate in Minnesota. The U.S. Department of Education cut off the institutions’ access to federal loans soon after.
Those repercussions eventually led to the chain of schools closing several campuses. At the time of the fraud ruling, there were roughly 1,000 students enrolled at the two schools.