Education Dept. Denies Student-Aid Funds to 2 For-Profit Colleges

Globe University and the Minnesota School of Business, both for-profit institutions, were denied access to federal student-aid programs on Tuesday, the U.S. Department of Education said in a news release.

Globe and the Minnesota School of Business, which are commonly owned, committed fraud involving Title IV funding and were determined to be ineligible to participate in federal student-aid programs, the release said. The institutions also “knowingly misrepresented” their criminal-justice programs and how students could transfer credits from those programs to other colleges and universities.

“Globe and MSB preyed upon potential public servants — targeting those with a sincere desire to help their communities,” the under secretary of education, Ted Mitchell, said in the release.

In September a Minnesota judge ruled that Globe and the Minnesota School of Business had committed fraudulent marketing and recruiting for their criminal-justice programs. Lori Swanson, Minnesota’s attorney general, filed suit in 2014 against the for-profit group, saying the colleges had misrepresented job opportunities available to students after graduation.

Globe did not immediately respond to a request for comment.

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