Betsy DeVos Held in Contempt of Court for Refusing to Stop Collecting Loan Payments From Defrauded Students

A federal judge on Thursday held President Donald Trump’s billionaire Education Secretary Betsy DeVos in contempt of court for failing to comply with an order to stop collecting loan payments from former students of Corinthian Colleges, a defunct for-profit college company that defrauded tens of thousands of borrowers.

“If Betsy DeVos wants to work for predatory for-profit colleges, she should resign and find herself a new job.”
—Sen. Elizabeth Warren

Judge Sallie Kim of the U.S. District Court in San Francisco also hit the Education Department with a $100,000 fine for violating the injunction.

“Money from the fine will be used to compensate the 16,000 people harmed by the federal agency’s actions,” the Washington Post reported. “Some former students of the defunct for-profit college had their paychecks garnished. Others had their tax refunds seized by the federal government.”

The Education Department said in a statement that it made “mistakes” and did not intend to violate the order.

In her eight-page ruling (pdf), Kim said there is “no question that defendants’ violations harmed individual borrowers who were forced to repay loans either through voluntary actions or involuntary methods (offset from tax refunds and wage garnishment) and who suffered from the adverse credit reporting.”

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