Minnesota School of Business Quick Hits:

  • MSB Graduation Rate: 19%

  • Avg student debt of MSB grads: $45,244

  • Percent of students with student loans: 92%

  • 3 Year default rate for student loans: 12.8%

Globe / Minnesota School of Business in the news…

My Experience at Globe University

Written testimony from Kelly Bloemer presented to the United States Department of Education Negotiated Rule-Making Committee:

After the tour was over, my adviser and I had a meeting about what Globe University would cost me. I was in shock at how much the tuition was. The vet tech program is only a two year degree but it would have cost me less money to get a four year degree at a private college anywhere in WI.

A week before the classes were about to begin I read online that the Vet Tech program at Globe University was not an accredited program, which means it is not up to the standards of veterinary clinics in WI. This set up a few red flags in my head. I called Globe University to ask why there program wasn’t accredited and I could tell I caught them off guard by the way they answered my question. They said their program was a brand new one and has not had time to be evaluated yet. I decided I was not going to spend all this money on a program that has not been accredited. When I scheduled a meeting with my advisor to withdraw from my classes they got very angry and rude with me.

Click HERE to read the rest of Kelly’s testimony.

Globe University: Profiteering Off the Backs of Students and Taxpayers

Kyle McCarthy, Huffington Post

The EdOp Loans come with a very high 18 percent interest rate with monthly payments which also require repayment while students are still in school. Much like other private student loans, with the EdOp student loan, borrowers are subject to an array of late charges, collection costs, and the interest is capitalized. Moreover, it certainly does not seem very hard to default on one of these loans either. For instance, upon graduating or withdrawing from school, borrowers immediately go into default after 30 days without payment. Other reasons for default include: failing to notify the lender of a name change within 10 days, or upon death of the borrower or co-signer. If a borrower defaults, the student's transcripts will also be held until the bill is paid.

Perhaps even more disturbing is that the mailing address listed on the EdOp Loan website also happens to be the same mailing address of American Accounts & Advisers, a debt collection agency. This happenstance could imply that these loans, which are made to high risk borrowers, are not expected to be paid on time. And if a borrower falls behind on this loan, the school holds students' transcripts until the loan is paid. Such a predatory move would allow more money to be made over the life of these loans with fees, capitalized interest, and collection costs added to the cost of the loans.

Click HERE to read more.

For-profit Globe University's recruitment, revenue tactics questioned

Alex Friedrich, MPR News

All of the schools promote themselves heavily on TV and in online advertisements. The ads offer no guarantees for a degree or a job, but they suggest students will have opportunities to advance in promising fields.

The ads for Globe and Minnesota School of Business tend to attract a desperate, low-income clientele. Such students are in for a hard, often misleading sales pitch once they contact the schools for information, said the former recruiters and staff, who came forward to expose the schools' tactics.

Click HERE to read more. Click HERE to listen to the audio of the MPR News Globe University Investigation.

Former deans file whistleblower lawsuits against Globe University

Alex Friedrich, MPR News

Heidi Weber and Jeanne St. Claire said they were fired for complaining about misleading practices at the for-profit college.

Weber of Prescott, Wis., was dean of the medical assistant program in February 2010. In the lawsuit, she alleges the school violated multiple accreditation standards and hushed it up.Weber alleges that the school: paid commissions to recruiters; failed to tell students that problems such as felonies could hurt their job prospects; and failed to provide enough training opportunities for students.

Click HERE to read more. Click HERE to listen to the audio.

Despite Poor Results, Globe University Focuses on "Selling Education"

Kyle McCarthy, IPR

This past fall, Globe University/ Minnesota School of Business was ordered to pay nearly $400,000 to former dean, Heidi Weber in a whistleblower lawsuit. Last month, the school was also ordered to pay an additional $500,000 in attorney fees to Weber and Globe’s motion for a new trial was denied.

Many of Weber’s claims uncovered a culture fostered by Globe executives that seems to place more importance on profit, rather than educating, graduating, and improving the lives of the students they serve. Weber blew the whistle on unethical behavior such as questionable advertising, violations of Title IV federal aid programs, bribing of students with free textbooks to keep them quiet, misrepresenting the school’s accreditation status to the public, and violations of recruiting methods and the ban on commissions for admissions representatives based on enrollment numbers.

This is not the only legal trouble Globe has faced. Other claims include:

Charged With Protecting Students, Congressman Kline Instead Serves For-Profit Colleges

By David Halperin, Huffington Post

In 2011, Minnesota-based Globe's chief operating officer was invited to testify before Kline's congressional committee, and she firmly opposed the Obama gainful employment rule. Now we might have a better idea why Globe might have been so opposed to being held to a higher standard of accountability. In August, former Globe dean Heidi Weber won a $395,000 jury verdict against the company. Weber alleged that she was fired for complaining that Globe used phony job placement statistics and engaged in other misconduct to recruit students. Earlier this month, Minneapolis attorneys Clayton Halunen and Scott Carlson, who represent Weber, filed a class action lawsuit on behalf of Globe students, claiming that the company "systematically and deliberately" misleads prospective students about job placement numbers, likely starting salaries, accreditation, and transferability of credits. I recently met with Halunen and Carlson, and they mean business -- they want justice for Minnesota students who have been left much worse than when they enrolled at for-profit schools.

Click HERE to read more.

5 students file class-action suit accusing Globe University

Maura Lerner, Star Tribune

Five students have filed a class-action lawsuit against Globe University in Woodbury, accusing the for-profit school of misleading and manipulating prospective students and lying about its job-placement rates and accreditation.

The new allegations surfaced just two months after a former dean, Heidi Weber, won a $395,000 judgment against Globe in a whistleblower lawsuit over alleged ethical violations at the school. The students began contacting Weber’s Minneapolis attorneys, Halunen & Associates, about “potential legal grievances” after the August verdict, according to a statement from the attorneys. The new lawsuit was filed Wednesday in Hennepin County District Court.

Click HERE to read more.

Globe University Owner: "Sell! Sell! Sell!"

Kyle McCarthy, Huffington Post

One of the documents that was made public after the trial is the Globe Education Network's Admission Representative Training Manual, which I have uploaded at StudentDebtCrisis.org/Globe. Information in the training manual only strengthens claims that executives at these schools place a greater importance on profit, rather than the students they are supposed to be serving.

The manual focuses heavily on the huge profits that can be made "selling education," while  educating, graduating and helping improve the careers of the students Globe serves takes a far back seat. New representatives begin by taking a four week-long training program covering "qualitative" sales philosophy, memorizing a 60-75 minute admissions presentation, learning how to "overcome objections" from prospective students, learning to close sales (enroll students) and the psychology of convincing prospective students to enroll. According to the manual, "The most successful representative is a psychologist first, a salesperson second."

Click HERE to read more.

Minn. Court Upholds Big Jury Verdict Against Globe For-Profit College

David Halperin, Republic Report

Last August, a Minnesota jury awarded Heidi Weber, a former dean at for-profit Globe University, $395,000 in damages against the school. Weber alleged that she was fired for complaining that Globe used false job placement statistics and engaged in other misconduct to recruit students. On Tuesday, the trial judge in the case rejected Globe’s motion for a new trial and for a reduction in the damage award — giving Weber an important victory in her legal battle. The court also awarded just over $500,000 in attorney fees, which are provided for under the whistleblower law. -

Click HERE to read more.

Class-Action Lawsuit Filed Against Globe University Says School Deceived Students

Kris Janisch, Patch.com

Filed on behalf of five current and former students, the suit also says Globe misled students about transferring credits and starting salaries for graduates, and enrolled students based on their ability to secure financial aid, according to a release from Halunen & Associates, the firm that represented a former dean who won a $400,000 whistleblower suit against the university in August.

Click HERE to read more.

Scam Alert: Is Your College or University a Diploma Mill?

By Halina Zakowicz, I've Tried That- We Lose Money So You Don't Have to

What is a Diploma Mill?

Westwood College, alongside other institutions such as Globe University, University of Northern Washington and Monticello University is what is popularly termed a “diploma mill” or “degree mill”. According to the FTC, a diploma mill is defined as the following: “a company that offers “degrees” or certificates for a flat fee, requires little course work, if any, and awards degrees based solely on life experience.” Furthermore, “although many diploma mills claim to be “accredited,” their accreditation is from a bogus, but official-sounding agency that they created.”

Click HERE to read more.

Educational Opportunity? Globe University's Murky Student Loan Partnership With Debt Collection Agency

Kyle McCarthy, Huffington Post

Myhre frames the new StA loan as a great opportunity for those that may not otherwise be able to finance their education. New loan or not, one big question still remains unanswered: Why does the debt collection agency, American Accounts and Advisers, share the same mailing address as the address listed on EdOpLoan.com, the site where students apply for the EdOp Loan? The website EdOpLoan.com also lists Myhre Investments and Globe Education Network schools as lenders for the EdOp Loan. Perhaps, that is because American Accounts and Advisors actually owns the website EdOpLoan.com?

Click HERE to read more.

College trap: Do for-profit schools adequately serve students?

Todd Finklemeyer, Madison.com

The longer she stayed at Globe, the "more evident it became to me that they cared more about getting my money than providing a quality education," adds Koran, who left Globe after less than a year with $12,000 in student debt and a bad taste in her mouth.

A persistent trickle of stories like these is part of the reason many who work within the more traditional halls of academia tend to view the growing for-profit higher ed sector with a skeptical eye.

Click HERE to read more.

Minnesota’s for-profit schools still cashing in on student debt

Nick Pinto, CityPages.com

At Duluth Business University, more than one in four students has defaulted on student loans after three years. At Globe University, the default rate is 17 percent. It's nearly that at National American University, which has campuses in the Twin Cities and in several other states. At Brown College and the Minnesota School of Business, it's 15 percent. At Rasmussen it's more than 13 percent. Capella looks better, with a 7.5 percent default rate.

For comparison's sake, the worst default rate among the state's public four-year schools belongs to Bemidji State, at less than 7.3 percent. The University of Minnesota's Twin Cities campus default rate is less than 2.5 percent.

Click HERE to read more.

Too Close for Comfort: One Family-Managed Group of For-Profit Colleges' Curious Relationship With Preferred Lender

Kyle McCarthy, Huffington Post

In 2007 former CEO of preferred lender, AFG, Gary Pressley opened American Truck Training North, inc, which also does business as Heavy Metal Truck Training (HMTT). Pressley is also listed as the contact on another Transportation Center for Excellence website (which also happens to be registered to Pressley as well). So by all appearances, the Globe Education Network relationship with a former preferred lender, never really ended. And that is incredibly troubling.

What was Globe Education Network's relationship with their preferred lender, AFG?  Were GEN school executives receiving kickbacks to promote loans through AFG instead of listing loans with better terms for students? What is their relationship today? What is/was Globe's relationship American Accounts & Advisors, the debt collection agency which owned the website, EdOpLoan.com where students applied for institutional loans? These are all questions that Globe Education Network students deserve to know the answers to. Because right now, this simply looks like yet another instance where Globe Education Network executives sold out students, placing profit above educating, graduating, and helping the students they serve.

Click HERE to read more.

Republican Lawmakers Say Gainful-Employment Rule Should Be Dropped

Kelly Field, Chronicle of Higher Education

Last week, Sen. Tom Harkin, the chairman of that chamber's education committee, held a hearing where he called one for-profit college "a scam, an absolute scam."

During the hearing, lawmakers heard testimony from a former student and an employer who praised for-profit colleges for their flexibility, and from the chief operating officer at the for-profit Globe University/Minnesota School of Business, who asked Congress to block the (Gainful Employment) rule.

Click HERE to read more.

For-Profit Colleges Under Fire: ‘They’re Selling A Dream’

Liz Collin, CBS

‘It’s Basically A Worthless Piece Of Paper’

Now, five current and former Globe students are suing with similar complaints, accusing the school of keeping the student loans and scholarships while the students are left deep in debt, without the education or professional opportunities Globe promised.

Numbers from the Minnesota Office of Higher Education show 96 percent of Globe graduates took out student loans and graduated $44,824 in debt, and 17.5 percent missed at least one loan payment. In comparison, 67 percent of University of Minnesota graduates have loans totaling nearly $26,727, while just 3.8 percent defaulted.

Click HERE to read more.

Beware of Career Colleges. What is Your Money Really Buying?

Philip Theibert, Yahoo

Myhre built an educational empire including MSB, Globe University, Duluth Business University, Minnesota School of Cosmetology, Utah Career College and several other educational institutions. And while students struggle with credits that do not transfer and paying off $20 -30,000 in loans, according to the magazine Minnesota Business , Myhre's empire is geared to rake in $140 million by 2009.

Click HERE to read more