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A Minnesota appeals court ruled this week that Globe University and the Minnesota School of Business must repay borrowers for high-interest loans illegally offered to former students.
The Obama administration cut off federal student aid to the two for-profit chains in 2016 after the Education Department found that they had misrepresented academic programs to students. Former Minnesota attorney general Lori Swanson, however, continued to pursue a lawsuit involving loans improperly issued by the two chains with interest rates as high as 18 percent.
The state’s supreme court ruled in 2017 that Globe and the Minnesota School of Business issued the loans illegally. And the Minnesota Court of Appeals ruled Monday that the chains must pay back students for the principal and interest on any loans made since 2008 with interest rates higher than 8 percent.
