Globe University Lawsuit Update: Loan Forgiveness Options

globe university lawsuit

When you enroll in a higher education institution, your primary concern is to acquire a degree affordably. So you depend on the university or college to be transparent and upfront and assist you in fulfilling your dreams. But that’s not always the case. And that’s why there are various lawsuits, such as the Globe University lawsuit

Most times, schools will shut down after multiple allegations. These allegations then result in investigations in the admission practices of these institutions. How do you get back on your feet when these misfortunes happen to you? 

If you attended Globe University, you have several ways to get back the money you invested in your education. But before we begin, let’s find out more about the Globe University lawsuit. 

About Globe University 

Globe University was a for-profit institute located in Washington County, Minnesota, for higher learning. The school was established in 1885 and was then called Globe College until June 2007, when it was renamed Globe University. 

The university was sold to Helmer Myhre and Terry Myhre, and it was a subsidiary of the Minnesota School of Business, with locations in South Dakota, Wisconsin, and Minnesota. Both Globe University and Minnesota School of Business closed down permanently in 2017. 

Globe University Lawsuits, Complaints, And Allegations 

globe university class action lawsuit

In 2014, the Attorney General in Minnesota filed a lawsuit against the school. In the Globe university class-action lawsuit, the Attorney General cited that the institution misled students to get people into their university. 

Not only that, but they also used high-pressure sales strategies to entice the students to enroll in the institution as well. This allegation came after former students who enrolled in the same school filed the same allegations in 2013. 

A judge, in 2016, found that the institution violated the Consumer Fraud Act and Deceptive Trade Practices Act for: 

  • Deceiving, 
  • Defrauding, and 
  • Misleading prospective students who enrolled in the Criminal Justice program.  

The finding resulted in the revocation of the institution’s authorization to continue functioning in the state of Minnesota. At first, only students that testified in the trial against Globe University received reimbursement of expenses incurred when they enrolled in the school. 

In 2019 however, the ruling got appealed to include students who enrolled in the criminal justice program beginning from 2009. After the verdict, Globe University filed for Chapter 11 bankruptcy. 

In the Globe University class-action lawsuit, the school was forced to pay $395,000 in damages to former Dean Heidi Weber. She was fired after she blew the whistle on the institution’s unethical recruiting policies. 

Globe University faced a class-action lawsuit from five students who claimed the school fabricated accreditation, job placement numbers, and transfer opportunities to other universities. 

Federal Student Aid 

From 2011-2012, Globe University received over $170 million in federal student Aid. According to a former representative at Globe University, they were focused on recruiting students who couldn’t afford their education. 

Hannah Von Bank, another former Globe University admissions representative, testified that Globe University recruiters were trained to target students with low income. That is because these students qualified for Pell Grants, and this was free money for the institution.  

Most of these students are not prepared well for what’s ahead of them in school, which could be why the low graduation rates. The total graduation rate at Globe University’s main campus is only 30 percent. 

Students who graduate come out with higher student debt than their colleagues at traditional non-profit schools. Another report from the Minnesota Office of Higher Education showed that 67% of graduates took out student loans in 2010. And the average student loan debt was $26,727 in the University of Minnesota. 

But the figures for Globe University were jaw-dropping: 96% of graduates from Globe University took out student loans. They graduated with $44,824 in student loan debt. Without the Globe University lawsuit, most students would have found it almost impossible to get out of debt. 

Globe University Lawsuit Update 

There has been a tentative agreement that could offer financial relief for hundreds of former Globe University and Minnesota School of Business students. The Minnesota Attorney General Keith Ellison’s office released a statement. 

In the statement, they agreed with the schools, their owners, and the U.S. Education Department would provide almost 100% financial forgiveness for 920 former students. Of course, these students would be those who the for-profit institutions defrauded from 2009 through 2015. 

In the agreement, the authorities will relieve $23.1 million in outstanding federal student loans. Also, they will forgive $15.6 million in cash compensation for students defrauded to enroll in the school’s criminal justice program. 

Globe University Student Loan Forgiveness 

You have a chance to qualify for the Globe University student loan forgiveness if you enrolled in the school. The standard options available are: 

If, for some reason, you don’t qualify for the options above, you can opt for: 

  • Loan Rehabilitation 
  • False Certification Loan Discharge 
  • Loan Consolidation 
  • And an IDR plan that offers relief once you meet the requirements. 

More Details About Globe University Student Loan Forgiveness 

globe university lawsuit

Closed School Loan Discharge 

If you qualify for the closed school loan discharge, you need to fill out an application form found on the Student Aid official website. After completing the form, you submit it to your loan lender. Remember that you don’t qualify for forgiveness if you completed the program but didn’t receive a diploma. 

Borrower’s Defense To Repayment

As stated earlier, if you don’t qualify for the Closed School Loan Discharge, you can apply for the BDAR. It is evident in court and publicly known that the Globe University committed fraudulent acts in their admission process. 

However, you need to convince the court that these violations the school committed were made to you. In other words, claim to make it look like the institution defrauded you. So you need to get in-depth details about the Globe University class-action lawsuit and tailor it to you. 

You can get a professional to help you if you don’t know how to go about it. 

Tuition Recovery Fund 

Any cash payments or private student loans are covered under the tuition recovery fund. When it comes to eligibility requirements, each state is different. And you have to check if it is offered in that state. 

So you need to contact the Department of Education in the state where you attended the school. If not, you can contact your loan provider instead. If you find that you’re not getting the answers you need, you can contact us at 800-820-8128. You will get the opportunity to talk to a student loan advisor for further assistance. 


All the information given in this guide is for students who used federal student loans to pay for their education at Globe University. If you acquire private student loans via the institution or private lender, contact the Minnesota Attorney General’s Office to know how to proceed with reimbursement. 

You can also contact your loan provider to assist you. The Globe University lawsuit has paved the way for you to get your money back. 

If you need help to know which strategy is the best, contact us and speak with one of our professional student loan specialists. We will help you make an informed decision. Until then, always be alert for any Globe University lawsuit update. 

Leave a Reply

Your email address will not be published. Required fields are marked *