Student-debt activist: Globe’s offer of 18% student loan “alarming”

Tough conditions (MPR Photo / Tim Post)

Globe University / Minnesota School of Business has entered the radar of Kyle McCarthy, cofounder of StudentDebtCrisis.org.

In an article in The Huffington Post, he writes that the Globe Education Network offers its students a high-interest — 18 percent — private Educational Opportunities Loan (EdOp Loan).

He says Globe is quite aggressive in how it handles late charges, collection costs and interest.

And loan-default conditions, he says, appear stacked against students:

For instance, upon graduating or withdrawing from school, borrowers immediately go into default after 30 days without payment. Other reasons for default include: failing to notify the lender of a name change within 10 days, or upon death of the borrower or co-signer. If a borrower defaults, the student’s transcripts will also be held until the bill is paid.

The mailing address listed on the EdOp Loan website also happens to be the same mailing address of American Accounts & Advisors, a debt collection agency. This happenstance could imply that these loans, which are made to high risk borrowers, are not expected to be paid on time.

I’m hoping to go into this more later.

You can read his full commentary here.

  • Guest

    They will never get out of that debt! Huge interest private loans, outrageous tuition, and federal aid debt…all for a “degree” and job (if the employer even will hire them with that degree) that earns them slightly above minimum wage. All these pieces added together, admissions targeting and “selling a dream” to people that don’t know anything about higher education and/or can’t comprehend, inability to further their education to make more to pay back (credit transfer), high tuition..all leads to a big picture that’s wrong. The students dream of having a better life, actually ends up being exact opposite.

  • The Emperor

    Please dig deeper. You’ll find that Globe is about as bad as it comes to representing the concept of “giving people a chance”. This school is all about greed. Trust me, dig into the ACICS and MSB/Globe’s affiliations. You’ll find a whole lot of stuff that stinks!