Betsy DeVos Is Held in Contempt Over Judge’s Order on Loan Collection
Erica L. Green and Stacy Cowley
A federal judge on Thursday fined Education Secretary Betsy DeVos for contempt of court, ruling that she had violated an order to stop collecting on loans owed by students from a now-defunct for-profit chain of colleges.
The decision stems from a class-action lawsuit filed in 2017 by the Project on Predatory Student Lending of the Legal Services Center of Harvard Law School and the group Housing and Economic Rights Advocates, both of which represent former Corinthian students. For more than a year, the students’ lawyers argued that Ms. DeVos had illegally punished thousands of cheated students who were owed relief from the federal government.
In her ruling on Thursday, Magistrate Judge Kim wrote that the department had made “only minimal efforts to comply” with her order, and that it had “harmed individual borrowers who were forced to repay loans.” She also ordered the Education Department to file monthly status reports detailing its compliance.