Ellison: tentative deal would cancel $ 23 million debt owed by former MSB and Globe University students

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As part of the deal, $ 23.1 million in outstanding federal student debt would be forgiven and $ 15.6 million in cash compensation for students fraudulently enrolled in the schools’ criminal justice program would be paid.

The deal is still pending final court and US Department of Education approval.

Globe University files for bankruptcy, debts owed range from $ 10 million to $ 50 million

“People take on student debt because they believe it will help them pay better for their lives in the future. For students in the so-called ‘criminal justice’ program, MSB and Globe University have abused their debt. confidence, ”Ellison said. “These students were often low income, often veterans, often people of color, often supporting families while working full time. They wanted nothing more than to obtain a degree that would allow them to pursue a career in the public service. What they got instead was a waste of effort and inescapable debt. What they went through is heartbreaking.

“This deal is expected to finally resolve one of the largest consumer fraud cases ever initiated by the Attorney General’s office, and one of the only for-profit college cases to ever be tried in America. in dollars cannot make up for all the pain and loss these students and their families went through, I hope the relief that my office worked so hard to earn will allow them to start paying their lives again after this terrible experience. ”

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