Federal judge holds DeVos in contempt in loan case, slaps Education Dept. with $100,000 fine

A federal judge on Thursday held Education Secretary Betsy DeVos in contempt for violating an order to stop collecting loan payments from former Corinthian Colleges students.

Magistrate Judge Sallie Kim of the U.S. District Court in San Francisco slapped the Education Department with a $100,000 fine for violating a preliminary injunction. Money from the fine will be used to compensate the 16,000 people harmed by the federal agency’s actions. Some former students of the defunct for-profit college had their paychecks garnished. Others had their tax refunds seized by the federal government.

DeVos violated a court order to stop collecting on the debts of Corinthian College students. Now, they want her held in contempt.

“There is no question that the defendants violated the preliminary injunction. There is also no question that defendants’ violations harmed individual borrowers,” Kim wrote in her ruling Thursday. “Defendants have not provided evidence that they were unable to comply with the preliminary injunction, and the evidence shows only minimal efforts to comply.”




https://www.washingtonpost.com/education/2019/10/24/federal-judge-holds-devos-contempt-loan-case-slaps-education-dept-with-fine/?wpisrc=al_politics__alert-politics&wpmk=1