Appeals Court Orders Loan Repayment to University Students
ST. PAUL (AP) -- The Minnesota Court of Appeals says Globe University and the Minnesota School of Business must pay back students millions of dollars in high-interest loans.
The state attorney general sued the schools in 2014 saying they exceeded limits on loan rates and engaged in deceptive trade practices. The loans were made to about 6,000 students and had interest rates of 12 to 18 percent.
The appeals court ruled that loans made since 2008 with interest rates greater than 8 percent were illegal. The court says students are entitled to repayment of all principal and interest paid on those loans.
The Minnesota Office of Higher Education revoked the schools' licenses to operate in 2016.