Fraud by Globe University Leaves Broken Dreams, Big Debt - Higher Education
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Fraud by Globe University Leaves Broken Dreams, Big Debt

by Associated Press

WOODBURY, Minn. — Some students who were victims of fraud by Globe University and the Minnesota School of Business have been left with broken dreams and a mountain of debt.

The state sued the school, accusing it of defrauding more than 1,000 students, Minnesota Public Radio reported. Many students said the for-profit school encouraged them take out loans to pay tuition.

A Hennepin County judge ruled the schools violated state consumer fraud and deceptive trade practices laws. The school was ordered to pay restitution to those students.

After the suit, the State Office of Higher Education said the school couldn’t be registered in the state or take new students. The school began to close campuses when it became ineligible for federal funding in December.

Perry Schramm said he studied criminal justice at the school before finding out that his credits wouldn’t transfer to a certified police training program.

“Just imagine everything that you’ve worked for three to five years,” he said. “And, one day somebody said all that work was for nothing.”

He said he’s now $60,000 in debt.

“You’re just confused,” he said. “I was angry. I was sad. I was hurt. I was lied to. It was awful.”

School CEO Jeanne Hermann told the state Senate Higher Education Committee earlier this month that it regrets any harm students have experienced.

“I do ask that you consider the collateral damage that’s been caused to the citizens of this state. In attempting to protect a specific group of students, thousands of students were displaced and hundreds of Minnesotans have lost their jobs,” she said.

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