It’s been a rough month, there, for good reasons.
State Attorney General Lori Swanson on (March 20) added new allegations to her lawsuit against two for-profit schools in Minnesota.
Globe University and Minnesota School of Business, she said, made thousands of illegal, unlicensed student loans charging “staggering” interest rates as high as 18 percent and misled or failed to adequately tell students about their loan obligations…
In a statement, Globe University and Minnesota School of Business denied Swanson’s claims.
They lost in court, too:
Last week the Minnesota Supreme Court denied Globe University’s petition for an appeal of the decision in former dean Heidi Weber’s whistleblower lawsuit against the school. This marks the end of the line for Globe University officials to appeal the decision.
Just over a year ago, a jury decided that Globe University/Minnesota School of Business fired Weber after she blew the whistle on the school’s misleading, illegal, and unethical practices. The family managed group of for-profit colleges was ordered to pay nearly $1 million to the former Globe University dean…
The Minnesota Supreme Court’s decision to deny Globe University/ Minnesota School of Business’ petition for an appeal is just one of many recent public relations nightmares involving Globe University and school executives. As Steve Kaplan of the Twin Cities Business Journal suggests, “The jointly owned Globe University (GU) and Minnesota School of Business (MSB) have been sued so often these last few years, you’d think they might consider offering a course on how to run afoul of the law.”
The author of that, Kyle McCarthy, was a cofounder of StudentDebtCrisis.org. He has written extensively about Globe’s issues, over at HuffPo. You can of course get to everything by clicking on his name, there, but given that he blogs about many other topics as well, it’s probably more efficient to just search something like ”Kyle McCarthy Globe University,” if you’re just looking for his Globe stuff, for now. A couple of items that I found to be of particular interest:
– Globe University Owner: “Sell! Sell! Sell!”
– Too Close for Comfort: One Family-Managed Group of For-Profit Colleges’ Curious Relationship With Preferred Lender.
The purpose of all of this is not to rip on the students and teachers at Globe. It’s very important that they not be left hanging, if things do completely fall apart.
Comment below fold.
From Holly: We all seem to stand by as people who try to better themselves are left by some for-profit schools like Globe holding a worthless degree and 70,000 in debt. Thanks Kyle McCarthy for contacting state AGS and for opening my eyes.