Title

Two For-Profits Must Pay Restitution to Students

January 5, 2017
 
 

A Minnesota judge this week ruled that Globe University and the Minnesota School of Business, two embattled for-profits, must pay restitution to more than 1,200 defrauded students, reported the Star-Tribune.

The state's attorney general, Lori Swanson, had sued the for-profits, alleging they had misrepresented job opportunities for graduates of their criminal justice programs. A court agreed last September, finding the two institutions had engaged in consumer fraud and deceptive trade practices.

Following that ruling, the U.S. Department of Education last month cut off the flow of federal financial aid to the two for-profits.

The institutions said in a statement that they are considering an appeal. In the meantime, they will continue to work with regulators while winding down academic programs.

"The court’s final order was limited to one program -- criminal justice -- which has not been offered for more than two years and which represented no more than 4 percent of the schools’ overall student population at any given time," the institutions said. "We are disappointed that the court’s findings, based on the testimony of only 16 students, have resulted in such significant harm to the education and degrees of tens of thousands of students and alumni."

Note: This article has been updated from a previous version to add a statement from the two institutions.

 
+ -

Expand commentsHide comments  —   Join the conversation!

Opinions on Inside Higher Ed

Inside Higher Ed’s Blog U

What Others Are Reading

  • Viewed
  • Past:
  • Day
  • Week
  • Month
  • Year
Back to Top