Statement on Bankruptcy of Globe University and Minnesota School of Business

Washington, D.C. - Student Defense, a nonprofit organization dedicated to advancing students’ rights to educational opportunity, released a statement responding to Globe University and the Minnesota School of Business filing for bankruptcy. Under the Higher Education Act, institutions that file for bankruptcy are ineligible to participate in the federal financial aid programs. Student Defense is representing a former student of MSB in a class-action lawsuit against the U.S. Department of Education.  

"For too long, Globe University and the Minnesota School of Business deceived and preyed upon thousands of students," said Student Defense Counsel Robyn Bitner. "This bankruptcy means that other students won’t fall victim to these schools' deceptive tactics. It’s well past time for the Department of Education to stop collecting these students’ loans and approve their pending borrower defense applications.” 

Background
Student Defense sued the Department of Education in June 2019 on behalf of a class of student borrowers who have been subjected to illegal debt collections. The students attended the now-defunct Minnesota School of Business and Globe University, which were found by both a Minnesota court and the Department to have defrauded students. Remarkably, instead of helping these students, the Department has chosen to exacerbate their harm by initiating coercive collection tactics against them, including seizing their tax refunds. The lawsuit demands an end to this illegal debt collection and a return of the funds that have been wrongfully seized. 

More information about Student Defense’s lawsuit is available here: https://www.defendstudents.org/cases/blanchette-v-devos