Should a Student Be Denied a College Education Due to Poor Credit?

Education is often referenced as the great equalizer, opening doors for all who strive for a better life. However, there are many factors that prevent all with the desire for a degree from getting the opportunity to pursue a higher education–poor credit being one of them.

Recently the Globe Education Network of schools, including Globe University and Minnesota School of Business, has become the target of scrutiny for offering our students the opportunity to finance their college education with an institutional loan. The schools offer this financial option to students who do not qualify for traditional student loans due to their credit history. We believe all students, regardless of their economic status, should be given the opportunity to attend college.  We encourage students to only take loans if they need them, educate them of the obligation to pay back all loans, and are proud to offer an institutional loan program that encourages students to complete their degree program.  Here are facts of the Educational Opportunities (EdOp) loan:

  • After having exhausted all federal student aid, the student must have been denied a privately funded alternative loan to be eligible
  • The interest on the loan varies, but is reduced with consecutive on-time payments and at program completion.  Students have the opportunity to reduce interest to zero percent. 
  • Monthly, in-school payments are interest-only ranging from $25-$100, depending on the size of loan
  • The loan goes into default after 6 months of nonpayment
  • Student transcripts are withheld only when the loan is in default
  • No late fees

GEN’s EdOp loan provided students with the financial means to obtain their college degree, many of whom were first generation college students, and may not have been able to otherwise go to college. In March 2013, Globe Education Network transitioned to the Student Access (StA) Loan program. The loan exists for students needing financial assistance with tuition and encourages retention by providing an interest-free loan at graduation, making this option more affordable for students. The StA loan starts at 8 percent interest, and as previously mentioned, the interest is eliminated upon graduation. Students in the EdOp program have the ability to transfer to the new StA program.  Below are facts about the terms and conditions of this loan program:

  • While enrolled in school, students make monthly, fixed interest payments ranging from $25-$100 depending on the size of loan
  • After having exhausted all federal student aid, the student must have been denied a privately funded alternative loan to qualify
  • The loan goes into default after 6 months of nonpayment  
  • Late payment fees range from $1.15-$5.00 depending on the size of the loan
  • Student transcripts are withheld only when the loan is in default
  • This loan service is more automated and allows GEN financial-aid representatives more contact with the student

The recent attacks on our schools alleging unethical lending practices are unsubstantiated and untrue.  The sole reason our schools exist is to educate, graduate, and help the students we serve improve their careers. We’re proud to be able to provide our students with the needed financial support to make college possible.