$42 million in relief secured for defrauded students of MSB/Globe University

(FOX 9) - More than 900 former students of the Minnesota School of Business and Globe University will receive more than $42 million in financial relief, the state attorney general says.

In a release, Attorney General Keith Ellison said his office reached a tentative agreement with the owners of the schools and the Department of Education to provide the full financial relief to the students. Ellison said it is one of the biggest consumer fraud cases ever brought before his office.

In 2016, a Minnesota court found that Minnesota School of Business and Globe University misrepresented to students that they could pursue law enforcement careers by enrolling in their "criminal justice" program, but that the degree provided "no value towards pursuing those careers," the attorney general said.

The degrees cost students between $40,000 and $80,000. The for-profit schools offered the programs between 2009 and 2015. Both schools closed their campuses in January 2017 after the Department of Education dropped them from the federal student loan program.

Ellison said the students of these programs were "often low-income, often veterans, often people of color, often supporting families while working full-time."

In total, $23.1 million in debt will be forgiven for the 920 students and $15.6 million in additional compensation will be paid for students defrauded by the program.

The agreement was filed in bankruptcy court Monday night. All parties have agreed to the deal, but the Department of Education still needs to issue full approval.

Students who have filed claims and are entitled to the financial relief will be contacted by the attorney general’s office.