Minn. Sens. urge Department of Education to protect student loan borrowers
Sens. Amy Klobuchar, D-Minn., and Tina Smith, D-Minn., are continuing to call on the Department of Education to address protections for student loan borrowers.
In a letter to Education Secretary Betsy DeVos, Klobuchar and Smith called on the U.S. Department of Education to immediately stop collecting on the student debt of borrowers who were defrauded by Globe University and Minnesota School of Business, discharge the covered loans and process pending borrower defense applications.
Klobuchar and Smith’s call follows recent news of Globe and MSB filing for bankruptcy, which may prevent these defrauded students from receiving any of the tuition refunds a state court recently ruled the students are owed. The senators believe the federal government must immediately stop collections on these loans and provide these defrauded students with debt relief, a news release stated.
“Students should be protected from predatory practices by academic institutions and the financial impact and academic disruption that occurs when a school closes,” the senators’ statement read. “It is critically important that the former students of Globe and MSB who were defrauded are able to pursue the discharge of their debt through borrower defense claims.”
“Minnesota’s Attorney General has identified more than 1,300 students enrolled in particular programs at Globe and MSB in need of debt relief amounting to over $33 million, and recent court filings indicate that more than 7,000 former students of these colleges may be eligible for debt relief,” the letter continued. “We urge you to immediately stop collecting on the student debt of borrowers who were defrauded by Globe and MSB, discharge the covered loans, and process pending borrower defense applications.”