Trump administration reveals that far more Corinthian Colleges students faced debt collection in violation of a court order

The Boston Globe 1 week ago

The Education Department revealed in a court filing this week that it identified an additional 29,000 former Corinthian Colleges students who were pursued for federal student loan payments, despite a court order barring collection.

A federal judge held Education Secretary Betsy DeVos in contempt and fined the department $100,000 in October after the agency said it attempted to collect payments from 16,000 former students of the defunct for-profit college in violation of the order.

Magistrate Judge Sallie Kim of the US District Court in San Francisco requested monthly status reports on the department’s efforts to rectify the harm it inflicted upon borrowers, some of whom had their wages garnished or tax refunds seized. In its latest report, the department said it discovered far more people were affected by its actions.

Of the 29,000 newly identified borrowers, 550 lost wages or tax refunds because of the collection practice, while 5,000 were hit with negative marks on their credit reports. The Education Department has yet to refund all the money collected, according to the court filing.

In the court report, the department said a more thorough review ‘‘revealed that an isolated miscommunication between [the Federal Student Aid office] and its [loan] servicers and other logistical issues caused this underestimate in the number of impacted borrowers.’’

The Federal Student Aid office, according to the report, ‘‘has corrected the miscommunications with the loan servicers and developed systems to ensure borrowers stay in the correct repayment status.’’

Attorneys for the borrowers are livid over the department’s latest revelation, with lawyers continuing to receive stories from former Corinthian students about how the collection has affected their lives.


Source link
Read also:
Washington Post › Lifestyle › 1 month ago
The ruling comes after the agency revealed that it violated a court order to halt student debt collection on more than 16,000 former Corinthian Colleges students.
The Hill › 2 months ago
Students from the now-defunct Corinthian College have asked a federal judge to hold Education Secretary Betsy DeVos in contempt for pursuing their debts despite a court order prohibiting their collection, ...
Forbes › Finance › 1 month ago
U. S. Magistrate Sallie Kim today held DeVos in contempt of court and fined her $100,000 for violating an order to cease collecting student loan debt from students who attended Corinthian Colleges, a large for-profit college that closed on April 27...
Fox News › Politics › 1 week ago
Education Secretary Betsy DeVos collected student loan repayments from 45,801 students who were defrauded by now-defunct Corinthian Colleges -- far more than the 16,000 originally estimated -- in a move that defied court mandates to cease loan...
CNN › Politics › 2 months ago
Education Secretary Betsy DeVos violated a court order to stop collecting on the debts of some former Corinthian College students and now a judge is weighing sanctions or finding her in contempt of court.
NBC News › 1 month ago
A U.S. magistrate judge also fined the Education Department $100,000 for violating an order to stop collecting loans from thousands of former students of for-profit Corinthian Colleges.
Politico › Lifestyle › 1 month ago
House Democrats are scheduled to hold a hearing on the department's "refusal to provide debt relief" to students of Corinthian Colleges.
Washington Post › Lifestyle › 2 months ago
A judge said she was "deeply disturbed" by the agency pursuing education loan payments from 16,000 Corinthian Colleges students after she placed all collections on hold.
HuffPost › Lifestyle › 1 month ago
The Education Department improperly tried collecting on loans to former students defrauded by the defunct for-profit chain Corinthian Colleges.
Forbes › 1 month ago
Collaboration Can Save Small Colleges By Jeff Abernathy and Mauri Ditzler As private liberal arts colleges find ourselves under threat, many of us are turning to a seemingly unlikely ally: other private liberal arts colleges.
Sign In

Sign in to follow sources and tags you love, and get personalized stories.

Continue with Google
OR