Attorney General Swanson adds to allegations in lawsuit against two for-profit colleges

Author:
Updated:
Original:

Minnesota Attorney General Lori Swanson is widening her legal battle against two for-profit schools in Minnesota, adding new allegations to the lawsuit she filed last summer.

MPR News reports that Swanson accuses Woodbury-based Globe University and Minnesota School of Business of of violating state law by making some 6,000 unlicensed student loans. She added that the for-profit colleges charged what she termed "staggering" interest rates as high as 18 percent, more than twice the 8 percent maximum allowed by state law. Swanson also said the schools misled or failed to adequately inform students about their loan obligations.

The Star Tribune reports that Swanson asked a Hennepin County court to invalidate those loans and order the company to reimburse students for payments made on them since 2009.

"Students are telling us one after the other that they were rushed through financial aid, they were just asked to sign a bunch of forms, that the loans weren't really explained to them, they didn't understand," Swanson said.

If the court rules the loans were illegal, Swanson said, it could render them invalid and allow students to get their money back. For now, she said she’s not advising students to stop payment. “Because I don’t know what the school will do to them.”

Last summer, Swanson filed a consumer fraud lawsuit against the schools, accusing them of high pressure sales pitches and of misleading prospective students about their ability to find jobs after graduation.

In a statement, Globe University and Minnesota School of Business denied Swanson's claims.

"We continue to express our desire to come to an amicable resolution with the attorney general," a statement from the schools read. "Unfortunately, up to this point, rather than working with us toward a resolution, the attorney general appears to be continuing to solicit publicity for her own political agenda."

Next Up

Karl-Anthony Towns

Wolves-Grizzlies game off, KAT tests postive for COVID

The Timberwolves star was among several players that are dealing with COVID-related issues.

minnesota state fair

Planning for the 2021 Minnesota State Fair is underway

The fair suffered huge financial losses due to COVID-19, but organizers are moving forward with planning "different scenarios" for this summer.

Screen Shot 2021-01-15 at 2.16.44 PM

Heather Brown named as new WCCO 'This Morning' anchor

She will be joining Jason DeRusha on the CBS affiliate's Morning Show.

DPS John Harrington

DPS Commissioner: No credible threats to state Capitol, but ready if something arises

Local and state law enforcement officials have a plan in case a threat arises.

snow, slush (submitted photo, ok to use)

Here are snow totals from Thursday-Friday winter storm

It's a slushy mess in the metro, but snow did pile up in southern counties.

tim walz

Walz fury after report that government's COVID vaccine reserve is nonexistent

The Washington Post reported Friday that the Trump Administration has shipped out all the vaccines it has already, with none in reserve.

closed sign

What's open and closed in Minnesota on MLK Day 2021?

Local government offices will generally be closed on Monday.

BMTN 900x450 (8)

Company that falsely promised student loan forgiveness banned from MN

It's also been ordered to repay $11,499 in fees taken from Minnesotans.

covid-19, coronavirus

Here is Minnesota's COVID update for January 15

Hospitalizations are the lowest in Minnesota since October 25.

Sars-Cov-2

Osterholm: B117 COVID strain could become major issue in 6-8 weeks

The B117 variant is believed to be more easily transmitted.

Related