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WASHINGTON – U.S. Senator Dick Durbin (D-IL) issued the following statement after the U.S. Department of Education (ED) announced it would terminate the participation of Globe University and Minnesota School of Business in the Title IV federal student loan program. The announcement comes after a Minnesota judge ruled in September that the for-profit colleges defrauded and misled students.
“It’s no surprise that Globe University and Minnesota School of Business, found guilty in Minnesota court of deceptive practices, were both accredited by the Accrediting Council for Independent Colleges and Schools – the same deadbeat accreditor that accredited the now-defunct Corinthian, ITT Tech, and Westwood Colleges,” said Durbin. “Today’s decision by the Department of Education to withdraw Title IV eligibility from these schools shows that even in the waning days of this Administration the commitment to protecting students and taxpayers remains strong. I call on Secretary King to provide automatic federal student loan discharges to Globe and Minnesota School of Business students on the basis of the court’s findings.”
In 2014, Globe and Minnesota School of Business each received over $25 million in financial aid dollars from the federal government.
Today, Senator Durbin joined Senators Patty Murray (D-WA), Elizabeth Warren (D-MA), Sherrod Brown (D-OH), and Richard Blumenthal (D-CT) in calling on the Department of Education to take steps to protect students and taxpayers in the event that the Accrediting Council for Independent Colleges and Schools (ACICS) loses federal recognition. ACICS losing federal recognition would require the approximately 250 schools currently accredited by ACICS to receive new accreditation from a federally recognized accreditor in order to remain eligible for Title IV federal student aid.
In September, the Department made a decision to withdraw federal recognition from ACICS following a recommendation from the independent National Advisory Committee on Institutional Quality and Integrity. That decision is now pending appeal to the Secretary.
