Cut From Fed Funds, Woodbury-Based Globe University to Close

Woodbury-based Globe University and Minnesota School of Business announced that the schools are preparing to close. The two schools have a common owner

The closure comes after the U.S. Department of Education announced the schools will no longer be able to participate in the federal student aid program following findings of fraud and what officials call "callous acts of misrepresentation."

Authorities found that Globe and MSB are ineligible to participate in federal student aid programs because they committed fraud involving Title IV program funds.

Additionally, both institutions "knowingly misrepresented the nature of their criminal justice programs and the transferability of credits earned to other institutions," officials said.

In a statement, Globe said: "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."

The school said that each Minnesota campus will remain open through at least the end of January so that students have time to transfer to other institutions.

Globe said it will officially discontinue operations as Globe University at the South Dakota and Wisconsin campuses as of Dec. 31, 2016.

"While the Attorney General may celebrate the closure of the schools, many others will not," Globe said. "This holiday season will not be so happy for the thousands of students forced to complete their programs elsewhere, the hundreds of employees losing their jobs, or the communities that depend on a skilled workforce. We will continue to work with regulators to seek more reasonable actions and for our other programs to continue."

Earlier this year, following a lawsuit filed by Minnesota Attorney General Lori Swanson in 2014, a Minnesota court issued an order finding that Globe and MSB engaged in consumer fraud and deceptive trade practices by misrepresenting the job opportunities available to their criminal justice graduates.

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