Supreme Court: Globe, School of Business Loans Were Illegal
ST. PAUL (AP) The Minnesota Supreme Court says Globe University and
the Minnesota School of Business issued illegal loans to students.
Wednesday's ruling by the Supreme Court found the for-profit schools issued the
loans without proper licenses and with unlawful interest rates. Attorney General
Lori Swanson says nearly 6,000 students received the loans since 2009.
The colleges offered loans ranging from $3,000 to $7,500, with interest rates between 12 and 18 percent. The Supreme Court defined those as closed-end loans, which must have an interest rate no higher than 8 percent.
Swanson plans to ask a lower court to declare that loans made on or after Jan.
1, 2009 are null and cancelled. In a statement, a representative of the schools
said they were ``disappointed'' with the ruling.