Despite Accusations of Fraud and Deception, Will Globe University be Expanding to Your State?

By Kyle McCarthy

If you live in California, Colorado, Florida, Indiana, Kansas, Kentucky, Louisiana, Massachusetts, Maine, Michigan, Missouri, North Carolina, North Dakota, New Jersey, South Carolina, Texas, Virginia, or Washington, the answer is probably yes. That’s because, this year, the owner of Globe University has registered to do business in these 18 states. The company lists “employing online instructors” as their specific purpose for doing business in Missouri, so presumably, it plans to do the same in the seventeen other states.

Globe University and Minnesota School of Business are part of a collectively owned group of about 30 proprietary colleges that make up the Globe Education Network (GEN). It has been an incredibly bad past few years for these schools, which is most likely the main cause for their rapid decline of enrollment over the past few years. Since 2010, enrollment at the twenty Globe / MSB campuses has plummeted from over 10,000, to 4,900. In June, the school was also forced to close their Shakopee, Minnesota campus due to such low enrollment. By expanding to new states, the school would be able to bring in new revenue from outside states, where students may not be aware of legal issues, nor Globe University’s poor reputation.

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The decline in enrollment is most likely attributable to the negative publicity the school has received, due to numerous accusations of fraud and deception, as well as leaving students deep in debt and jobless. The school has faced lawsuits from former deans of the school, current and former students, and most recently, the Minnesota Attorney General for allegedly misleading criminal justice students and selling them a degree which does not even prepare them for a career as a police officer in states where Globe operates. As revealed in the case, the criminal justice program at Globe University is not properly accredited by state agencies, so a degree from the program does not qualify graduates to become police officers.

Even though this is the case, Globe University students pay much more for their education, and graduate with about twice the average student debt of public colleges. An associate’s degree at Globe typically costs between $35,000 and $42,000, while students can expect to pay between $70,000 and $89,000 for a bachelor’s degree.

Though officials at the school deny accusations, the Minnesota Attorney General has over 40 affidavits from people accusing the school of wrongdoing. With Globe University expanding into more states, it should be interesting to see if these attorneys general pay stricter attention to a school that keeps finding itself accused of fraud and deception.