Americans for Financial Reform welcomes the news that the Department of Education has taken steps to protect both students and taxpayers by cutting off federal student loan money to Globe University and the Minnesota School of Business (MSB) — two for-profit institutions where the Department found fraud and misrepresentations.

For too long, for-profit colleges like Globe and MSB have enjoyed massive profits off the backs of American taxpayers, even as they’ve perpetuated fraud and abuse. We commend the Department for its actions today, and call on the Department to ensure that any students affected by the misconduct are granted the relief they’re entitled to under the law, by moving to grant these defrauded students automatic, class-wide discharges of their federal student loans.