Minnesota appeals court rules for-profit school loans weren’t deceptive or illegal
Private loans a for-profit college chain made to students did not amount to deceptive and unlicensed lending, a state Court of Appeals panel ruled Monday.
The appellate panel’s decision to uphold an earlier district court ruling is a bright spot in a court case that could lead to the eventual closure of Globe University and the Minnesota School of Business. Attorney General Lori Swanson filed a lawsuit against the schools in 2014 alleging fraud, deception and illegal loans with unethically high interest rates.
While the deceptive lending allegations were thrown out, the rest of the case went to trial in April. Last week, Hennepin County District Court Judge James A. Moore found the two schools committed fraud when they led students to believe their criminal justice degrees would get them closer to careers as police and probation officers.
In coming months, Moore is expected to decide how much of a civil penalty the schools should pay and whether students should receive restitution.
Read more: http://www.twincities.com/2016/09/12/minnesota-appeals-court-says-for-profit-schools-loans-were-not-deceptive-not-illegal/