MINNEAPOLIS - Globe University and Minnesota School of Business will no longer be able to participate in the federal student aid program after the U.S. Department of Education found evidence of fraud.
According to a press release sent Tuesday, the U.S. Department of Education states the for-profit schools knowingly misrepresented its criminal justice programs and how those credits transfer to other institutions.
In reality, the misconception left students without the proper credits needed to continue in their chosen careers or to transfer to a postsecondary school, leaving students with significant debt and no options.
"Globe and MSB preyed upon potential public servants – targeting those with a sincere desire to help their communities," the press release states.
Letters were sent to Globe and MSB stating that effective on Dec. 31 of this year, both schools would no longer be able to participate in the federal student aid programs. If they choose to dispute the ruling, the schools can do so by Dec. 20.
Globe University has 10 locations in Minnesota, Wisconsin and South Dakota with roughly 1,000 students enrolled. They received $28.4 million in federal student aid during the 2014-2015 school year.
MSB enrolls approximately 700 students at nine locations throughout Minnesota and received $25.5 million in federal student aid during the same time period.
In a statement, Globe University and Minnesota School of Business said, "This is a sad day for two long-standing private institutions. Today’s decision continues the destructive actions taken by Minnesota Attorney General Lori Swanson and the Obama Administration against career-focused institutions."
The statement continued, "In September, Globe and MSB were found to have unintentionally misled a fraction of students in our Minnesota criminal justice program. The program was discontinued in 2014 and represented less than 4% of the student body. We are waiting for the Court to issue its final decision. It’s unfortunate that the Attorney General and the Department of Education decided to sanction the schools in their entirety. Instead of helping students in one program, their actions will eliminate options and tarnish the degrees of thousands of graduates. We have been and will continue working with other institutions to help students transfer their credits and continue their education."
