Watch CBS News

Globe University & Minnesota School Of Business Ordered To Repay Students

ST. PAUL, Minn. (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% 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.

(© Copyright 2019 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

EMERGENCY COMPONENT - LOCAL

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.