Secretary of Education Betsy DeVos in contempt of court
STILL Enforcing Loans On Defrauded College Students.
The government will pay the $100,000, and DeVos will not be personally responsible for the sum.
Ten third-party contractors were involved in collecting the loans, and the judge’s opinion notes that the Education Department didn’t do much to make sure it followed the orders, beyond sending a few emails.
It’s rare for a judge to find a Cabinet secretary in contempt of court. Sen. Elizabeth Warren, a presidential candidate, has called for DeVos to resign over this issue.
the Education Department was supposed to simply refund all the money borrowed by students who attended Corinthian during the time it was making false claims.
DeVos Won’t stop collecting loans from former students of a now-defunct chain of for-profit colleges.
$100,000 will go toward various remedies and legal expenses for students who are owed debt relief from the Education Department after Corinthian Colleges collapsed in 2014, according to the ruling.
We’re disappointed in the court’s ruling. We acknowledged that servicers made unacceptable mistakes. @BetsyDeVosED directed @FAFSA to take immediate action to help every impacted borrower. As of today, @FAFSA has taken the actions needed to make every impacted borrower whole. pic.twitter.com/10kgh63bhH
— U.S. Department of Education (@usedgov) October 25, 2019
Toby Merrill, the Harvard University lawyer and director of the Project on Predatory Student Lending who brought about the class action suit on behalf of 80,000 affected students against the Education Department. Harvard Law School
The Project on Predatory Student Lending represents the students in the lawsuit.
Top Betsy DeVos appointee abruptly quits, calls for canceling $925 billion in student loan debt
Trump’s top student loan official resigns — and immediately calls for ditching “fundamentally broken” loan system.
A. Wayne Johnson was appointed by DeVos in 2017 as chief operating officer of the Office of Federal Student Aid, which oversees the more than $1.5 trillion in student debt accrued by millions of Americans. He later moved into a different position, leading an effort to overhaul how the agency handles borrowers and lenders.
A. Wayne Johnson appointed by Secretary Betsy DeVos abruptly announced his resignation on Thursday and called for the cancellation of more than $900 billion in student loan debt.
Johnson told the outlet that repayment trends suggest that much of the outstanding debt will never be repaid and called for an overhaul of the entire student lending system.
Johnson hopes to be appointed to the Senate seat in Georgia by Gov. Brian Kemp, a Republican, but will run for the seat in the next election if he is not selected.
Johnson’s plan would forgive more debt than the plan proposed by Sen. Elizabeth Warren, D-Mass., which would cancel all debt up to $50,000 for families earning under $100,000 per year. Johnson’s plan, which has no income cap, would fall short of the plan proposed by Sen. Bernie Sanders, I-Vt., who has called for the cancellation of all student debt.
Rep. Robert C. “Bobby” Scott (D-Va.), chairman of the House Education Committee, is threatening to subpoena Education Secretary Betsy DeVos for more documents related to the department’s role in Dream Center’s actions. Scott says the agency has obstructed the committee’s investigation and refused to answer questions, as emails and letters paint a picture of a federal agency complicit in an effort to place profits before students