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Appeals court orders loan repayment to Globe University, Minnesota School of Business students

Appeals court orders loan repayment to Globe University, Minnesota School of Business students Photo: KSTP/ File

June 04, 2019 10:17 AM

The Minnesota Court of Appeals says Globe University and the Minnesota School of Business must pay back students millions of dollars in high-interest loans.

The state attorney general sued the schools in 2014 saying they exceeded limits on loan rates and engaged in deceptive trade practices. The loans were made to about 6,000 students and had interest rates of 12 to 18 percent.

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More from KSTP.com:

State Supreme Court says MN School of Business, Globe Made Improper Loans

Lawmakers Briefed on Help for Globe, MSB Students

Globe University, Minnesota School of Business Ordered to Pay Restitution


The appeals court ruled that loans made since 2008 with interest rates greater than 8 percent were illegal. The court says students are entitled to repayment of all principal and interest paid on those loans.

The Minnesota Office of Higher Education revoked the schools' licenses to operate in 2016.

According to the Minnesota Attorney General's Office, affected students can call the U.S. Department of Education's borrower defense hotline at 855-279-6207 or send an email.

Additional information on former Globe University and the Minnesota School of Business can be found here.

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Credits

The Associated Press

(Copyright 2019 by The Associated Press. All Rights Reserved.)

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