Just weeks after being barred from the federal student aid programs, for-profit institutions Globe University and Minnesota School of Business (MSB) announced Thursday that they would be shutting the doors of their Midwestern campuses.
The decision to close the campuses follows a December 6 decision from the Department of Education (ED) that the two institutions were ineligible to participate in federal student aid programs because they had been “judicially determined to have committed fraud involving Title IV program funds.” Globe and MSB, which are under the same ownership, also “knowingly misrepresented” their criminal justice programs to students and misled them about the transferability of credits to other institutions, leaving many students with substantial amounts of debt and limited opportunities for employment within their career paths, ED said.
The schools will close on December 31, which is the last date of the schools’ participation in the federal student aid programs.
According to information provided on its website, Globe University will continue operations but will close its campuses in South Dakota and Wisconsin. Teach-out agreements with Broadview University, located in Utah and accredited by the Accrediting Council for Independent Colleges and Universities (ACICU), will be provided to students who wish to complete their program.
MSB’s operations will continue through the end of January, at least, “to help students get transcripts, answer questions and facilitate meetings with multiple institutions that are willing to accept credits from Globe/MSB,” according to Globe’s website. Concordia University of St. Paul will be participating in a teach-out agreement for the institution’s nursing students, whose program will be entirely taken over by Concordia on January 1, 2017.
“While we continue to fight the injustices we feel have been done to our Colleges and our sector, it is in the best interest of our students’ success that we have made the very difficult decision to begin implementing teach-out and articulation agreements,” Globe University said in a statement. “We are currently appealing the U.S. Department of Education’s decision to deny our Colleges federal financial aid. We will continue to fight for our students and colleges until all options have been exhausted.”
Publication Date: 12/22/2016