2 Minnesota colleges have to pay back the students they defrauded

It's the latest in a string of setbacks for Globe University and Minnesota School of Business

A couple of struggling Minnesota colleges learned Wednesday they'll have to repay tuition money to as many as 1,200 students who a court says were cheated by the schools' bogus claims.

The new court order is the latest piece of bad news for Globe University and Minnesota School of Business (MSB).

Their problems got serious last September when a court agreed with Minnesota's Attorney General that the schools had defrauded students in their criminal justice program by making false claims about their job prospects.

Wednesday's ruling says Globe and MSB will have to repay any criminal justice students who ask for their money back. That could mean paying back the tuition and other expenses for as many as 1,200 students.

Schools barely hanging on

The September fraud ruling led to last month's decision by the U.S. Education Department that federal student loans can no longer be used to pay tuition at Globe or MSB.

A couple weeks ago the schools closed their doors to new students, but say they're still working to help the 1,700 or so existing students at their 10 campuses finish their degrees or transfer to other schools.

Officials with Globe and MSB say the problems that led to the state's lawsuit were limited to the criminal justice program, which is no longer offered. "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," they said in a statement to FOX 9.

Under the ruling, Globe and MSB will give the names of their criminal justice students to the state. The Attorney General's office will contact them to let them know they qualify for getting their money back. The former students and alumni will have 45 days to file a claim.

Next Up

Ricky Rubio

Report: Timberwolves trade Ricky Rubio to Cleveland

Rubio's homecoming in Minnesota lasted just one season.

Tim Walz - YouTube - Screengrab

Gov. Walz: Newly-vaccinated Minnesotans will get $100

The incentive was announced shortly after President Biden announced the initiative.

Flickr - USPS post office mail truck - Paul Sableman

Man who attacked Oakdale postal worker gets 18 months in prison

He was accused of hopping over the counter and repeatedly punching the employee.

Wikimedia COmmons - Sierra store - Steve Morgan

Off-price retail store Sierra will open a St. Cloud location

It is the brand's first Minnesota store outside the Twin Cities.

Motzko and Schuneman

Driver in crash that killed Motzko, Schundeman released from custody

Authorities say he was driving during the crash that killed Sam Schuneman and Mack Motzko.


Dental practice fired manager because she was too old, investigation finds

The business has agreed to a $54,000 settlement with the employee.

Ryan Suter

Suter says goodbye to Minnesota in Players Tribune piece

As Suter heads for Dallas, the Wild revamp their blue line.

vaccine, covid

Gov. Walz launches 'Vax to School' campaign ahead of new year

The state is encouraging students aged 12-17 to get vaccinated before school starts.

Justin Jefferson

Coller: Justin Jefferson isn't the sophomore slump type

Matthew Coller writes a weekly column for BMTN, with more of his work found at Purple Insider. He also hosts a weekly Vikings livestream on BMTN's YouTube and Facebook.

storm damage

State of Emergency in Wisconsin as daylight reveals massive storm damage

A tornado may have directly hit a farmstead, causing destruction.

Facebook - Line 3 frac out July 27 photo - Ron Turney

MPCA acknowledges 8 more drilling fluid releases during Line 3 work

That includes at least one fluid release into wetlands, which is a violation.


Feds tell pair of MN colleges: 'No student loans for you'

Globe University, Minnesota School of Business can't accept federal student loan money in 2017

A Minnesota college says it's getting all its power from the wind and sun

St. Olaf has a new wind power deal with Xcel Energy and says its electricity will be carbon free

A Minnesota school is named America's best community college

The northern MN tribal college topped 700 other schools.

Male student suspended over sex assault claim is suing colleges for gender bias

The student says he has been unfairly punished over a sexual misconduct allegation.

Students from defunct beauty school get a transfer offer

A Twin Cities cosmetology school says it will accept any transfer students from Regency Beauty Institute, which closed its five Minnesota campuses overnight this week.

Student accused of rape sues College of St. Scholastica over suspension

He says he was denied due process because of his gender.