The phrase 'institutional loan' is correct and usable in written English.
Institutional loans are loans made to businesses or organizations, typically offered by commercial banks and other financial institutions. For example, "The small business received an institutional loan to help finance the purchase of new equipment."
Many for-profit colleges use their own institutional loan system to help them stay compliant with the 90/10 rule, which prohibits for-profit colleges from generating more than 90% of their revenue from Title IV federal student aid.
As stated in her lawsuit, "Defendants engage in unlicensed lending, charge usurious interest rates, and take aggressive action against students who fall behind on their institutional loan payments; preventing students from completing the program in which they are enrolled".
Using these institutional loans (private student loans) is one of the riskiest ways to pay for school.
According to the case, Globe University and Minnesota School of Business also provided "misleading and incomplete information" to some students about their loan obligations for their institutional loans.
What is/was Globe's relationship American Accounts & Advisors, the debt collection agency which owned the website, EdOpLoan.com where students applied for institutional loans?
However, archived screen shots from EdOpLoan.com show evidence that the schools may have actually been offering their institutional loans to students since 2007.
Since institutional loans are not considered federal student aid, every EdOp or StA loan dollar Globe University and Minnesota School of Business students borrowed, basically has allowed the schools to bring in up to nine additional dollars in Title IV funding.
Aside from the institutional loans, other complaints from students include the lack of job placement assistance, credits not transferring, the high cost of programs, numerous cases of deceptive practices used by financial aid employees and admissions staff, and multiple cases of employees changing job-placement numbers which were submitted to the school's accrediting agency.
Voucher specimens were obtained from sampling onboard Research Vessel Pâmiut Greenland Institute of Natural Resourcess) around Greenland (JYP), from the MAR-ECO cruise (IB), catalogued and uncatalogued material at NSMT (TPS and GS) and institutional loans from ASIZP, BSKU, KU, MCZ, SIO, WU and ZMUC (Table 1).
As I posted in the article, Globe University: Profiteering off the Backs of Students and Taxpayers, Globe University and other Globe Education Network schools offered an institutional student loan called the "Educational Opportunities (EdOp) Loan".
In a response to what I wrote about this and other unethical behavior, Globe Education Network CEO (and son of the owner of the schools), Jeff Myhre failed to clarify the relationship with this debt collection agency nor why student borrowers were directed to a site owned by that debt collection agency for an institutional student loan.
