Minnesota School of Business Agrees to Forgive Former Students’ Loan Debt in Deal with AG’s Office

(KNSI) – Minnesota Attorney General Keith Ellison says his office has reached a tentative agreement with the Minnesota School of Business and Globe University to give millions of dollars back to former students.

If the U.S. Department of Education approves the deal, the now-defunct for-profit institution will forgive $23.1 million in federal student loans for 920 students and pay out $15.6 million to students who were enrolled in the school’s criminal justice program between 2009 and 2015.

The deal also covers students who were issued loans from the colleges.

The goal is to provide 100 percent financial relief for the former students, the AG’s office says.

“This agreement should finally resolve one of the biggest consumer-fraud cases ever brought by the Attorney General’s Office, and one of the only cases against a for-profit college ever brought to trial in America,” Ellison said. “While no dollar amount can make up for all the pain and loss that these students and their families experienced, I hope the relief my office has worked so hard to win will allow them to start affording their lives again after this terrible experience.”

The Hennepin County District Court issued an order against the colleges in 2016, finding that the school committed consumer fraud by saying the criminal justice degree program would prepare students for careers as police and probation officers. However, Ellison’s office says the program “provided no value toward pursuing those careers.” That degree cost each student between $40,000 and $80,000.

All the campuses closed in 2017 after losing their federal student aid funding. The college operated several campuses in Wisconsin, South Dakota and Minnesota, including the Minnesota School of Busines – St. Cloud campus formerly located in Waite Park.

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