Saturday, July 27, 2024
HomePolicyBetsy DeVos Held in Contempt, Fined for Collecting Student Loan Debt

Betsy DeVos Held in Contempt, Fined for Collecting Student Loan Debt

-

 A federal court has held Education Department Secretary Betsy DeVos in contempt for illegally collecting student loan debt balances from Corinthian Colleges students.

The latest action stems from the 2018 court order in which the Education Department was directed to stop collecting the loan payments of thousands of students who were defrauded by for-profit colleges, including by Corinthian Colleges.

Corinthian Colleges operated dozens of campuses nation-wide, but after legal trysts with states and federal government, the for-profit higher education company announced the closure in 2015.

Last month, the Department acknowledged that it collected loan payment from 16,034 students, which was in direct violation of the court order.

On Thursday, a federal judge slapped the Department with a fine of $100,000 and sought monthly reports.

“Taking this rare and powerful action to hold the Secretary of Education in contempt of court shows the extreme harm Betsy DeVos’ actions have caused students defrauded by for-profit colleges,” said Project on Predatory Student Lending Director Toby Merrill.

“Thousands of students illegally had their tax refunds seized and wages garnished, and the Department still can’t identify all of the affected students nor refunded the money. The judge is sending a loud and clear message: students have rights under the law and DeVos’ illegal and reckless violation of their rights will not be tolerated.”

Earlier this month the Project on Predatory Student Lending filed a lawsuit against the Department of Education and its Secretary on the behalf of nearly 7,200 former Corinthian Colleges students in a Boston court for not providing debt relief.

The suit alleged department of ignoring Attorney General Maura Healey’s borrower defense application that sought cancellation of the students’ fraudulent loans.

Voters Concerned Over Rescinding of Student Loan Protections

You Might Also Like

Latest Posts

10 Best Tips on How to Stay Focused in College

Peak performance in college comes from knowing how to stay focused. Identify the causes of your distraction and find the solution with these 10 helpful tips.

How to Make New College Friends: Top 10 Icebreakers to Try

The prospect of settling in, finding your place, and making friends can feel overwhelming, but breaking the ice is often the first step toward making life-long connections.

How to Keep Track of Your Graduation Requirements

Being proactive about academic performance is crucial, especially as you approach graduation. It's important to address any issues promptly to avoid snowballing into larger problems that might delay graduation.