U.S. Secretary of Education Betsy DeVos faces potential contempt of court and sanctions for continuing to collect on the debt of former students at bankrupt Corinthian Colleges Inc., going so far as seizing their wages and tax refunds, Bloomberg News reported. U.S. Magistrate Judge Sallie Kim was “astounded” that Betsy and her department violated their order to cease collections of debts from the students, who were promised refund of their tuition.<\/p>\n\n\n\n
In 2015, Corinthian had to file for bankruptcy protection\nfrom creditors after facing a barrage of government investigations and lawsuits\nalleging systemic fraud. As a result, the federal government declared that the\n335,000 former students could erase their loans by filing out a simple form,\nunder penalty of perjury, would void their debt and prompt a refund on past\npayments.<\/p>\n\n\n\n
Charlie Merritt, a lawyer for the Education Department says the agency “takes responsibility” for the violations of Kim’s order. “We will bring ourselves into full compliance” and make sure the agency “stays that way going forward,” he added.<\/p>\n\n\n\n
If you are in debt and are needing someone to speak with,\ncontact our law office at 816-524-4949 or visit our website at Hoorfarlaw.com.<\/p>\n","protected":false},"excerpt":{"rendered":"
U.S. Secretary of Education Betsy DeVos faces potential contempt of court and sanctions for continuing to collect on the debt of former students at bankrupt Corinthian Colleges Inc., going so far as seizing their wages and tax refunds, Bloomberg News … Continue reading