Globe University (Globe) officially discontinued operations at its Wisconsin campuses on December 31, 2016 following a decision by the U.S. Department of Education (USDOE) to end Globe's participation in the federal student aid programs. Administration of those campuses has been transferred for purposes of a teach-out to Broadview University, a Utah-based partner institution that will allow students to complete their programs.
A Fact Sheet prepared by the USDOE on the closure of Globe contains information regarding transcripts, loan discharge, transfer of credits, federal financial aid, and loan processors.
Wisconsin students who were enrolled at the time of closure or who withdrew not more than 120 days prior to the closure (on or after September 2, 2016) have five options regarding their education:
Important Note: These options have implications for the ability of students to discharge federal loans and to receive assistance with tuition paid with private loans or out-of-pocket resources.
To qualify for a discharge of federal student loans, students:
Options 1 and 2 (from the previous section) negate the student’s ability to discharge federal loans. Students who have chosen either option 1 or 2 would not be eligible for a loan discharge because under federal rules, they would be considered to be completing a comparable/similar educational program at another school:
The USDOE has provided additional guidance on what constitutes a comparable program.
Options 3, 4 and 5 (from the previous section) are consistent with a student’s ability to discharge federal loans (provided other criteria are met, and students are enrolled at the time of closure or in the preceding 120 days).
With regard to Option 3, students who transfer credits to pursue a completely different program are eligible to apply for a loan discharge provided they are enrolled at Globe at the time of, or within 120 days of the closure, the loan servicer determines the completely program is different, and the student finishes the new program at the new institution.
With regard to Option 4, students who enroll at a different institution without transferring any Globe credits are eligible to apply for a loan discharge provided they were enrolled at Globe at the time of, or within 120 days of the closure.
With regard to Option 5, students who do not continue their education are eligible to apply for a loan discharge provided they were enrolled at Globe at the time of, or within 120 days of the closure.
Globe students interested in transferring credits should contact other institutions to discuss their options.
Students enrolled at the time of, or within 120 days of the closure who used private (non-federal) loans to help cover the cost of their tuition, or who made out-of-pocket tuition payments, may be able to receive a refund through the EAB, if those loans were used to cover the cost of tuition to attend Globe.
Students who had a private student loan that was used to pay tuition or made out-of-pocket tuition payments will need to substantiate such payments and provide the EAB with relevant paperwork, including a completed IRS Form W-9. Requests for reimbursement must include a receipt of payment, evidence of that the funds were used for payment of Globe tuition (not other education-related expenses), and an original completed and signed W-9 form. Requests must be mailed to the address at the bottom of this page. No facsimiles or e-mails will be accepted.
Students requesting reimbursement of a private student loan payments (used to pay tuition) or out-of-pocket tuition payments should contact the EAB. They will need to substantiate such payments and provide the EAB with the following:
All information comprising the request for reimbursement must be mailed or dropped off in hard copy form to the address at the bottom of this page. No facsimiles or e-mails will be accepted.
Students who completed a program or who withdrew more than 120 days prior to the closure of Globe are not eligible for discharge of their federal loans under conventional USDOE processes and procedures. Students who believe they were defrauded by their school or that their school violated state law may be eligible for loan discharge. The law requires borrowers to submit a claim in order to receive debt relief. Details on the Act and the process for submitting a claim are laid out on the federal government’s student aid website.
As the website notes, students making claims need to include details about the conduct of the school that the borrower believes violated state law including, but not limited to the following:
Some students work with an attorney to file a claim, but this is not a requirement. Students considering filing a claim may wish to call the federal government’s borrower defense hotline at (855) 279-6207. Representatives are available Monday through Friday from 8:00 a.m. to 8:00 p.m., Eastern time to access student loan information and to discuss one’s situation and whether one may qualify for forgiveness of student debt. Questions about borrower defense may also be e-mailed to FSA Operations.
The 1098-T tax forms used to substantiate tuition paid when filing 2016 taxes will likely be mailed out (to the most recent address on file with Globe) directly by the accounting firm that is working with Globe beginning in early 2017.