Students who withdrew from the Minnesota School of Business or Globe University after the colleges were found to be engaged in fraud may be eligible for federal student loan relief, a press release from the Minnesota Attorney General’s Office said.
Both of the now-closed schools engaged in “consumer fraud and deceptive trade practices in the marketing, advertising and recruitment of students into their criminal justice program,” the release said. Students who withdrew from courses after Sept. 8, 2016, which is when Hennepin County Court declared the schools were involved in fraud, are now eligible for federal student loan discharge.
The Minnesota Office of Higher Education revoked the schools’ registration to operate and they became ineligible for federal financial aid programs but remained open for another year, the release said. Normally, students can only discharge federal loans if they withdrew within 120 days before the schools closed, but the release said many students were unable to attend once federal financial aid was pulled and the school remained open another year.
Many of the credits from Globe or MSB were not eligible for transfer, the release said.
“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,” Minnesota Attorney General Keith Ellison said in the release.
Eligible students must apply to the Department of Education to receive the closed-school discharge of loans, but the release said if eligible MSB or Globe students don’t apply for discharge and don’t enroll in another school within three years their loans will automatically be discharged.