Betsy DeVos could face jail after judge rules she violated 2018 order on student loans

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Betsy DeVos could face jail after judge rules she violated 2018 order on student loans
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'There have to be consequences for violation of my order sixteen thousand times,' U.S. Magistrate Judge Sallie Kim said at a hearing on Monday.

Education Secretary Betsy DeVos has been threatened with the possibility of jail after a judge deemed she was violating a court order for continuing to collect student debts on a now-defunct school.

However, Kim said she was"astounded" to discover that DeVos was violating the court order at a hearing in San Francisco on Monday after a filing by the Education Department earlier disclosed that more than 16,000 former students at Corinthian College"were incorrectly informed at one time or another ... that they had payments due on their federal student loans."At least 1,800 people reportedly lost wages or tax refunds according to the filing.

The case traces its way back to 2015 when Corinthian had been among the largest for-profit college chains in the United States until a wave of investigations and litigation—including a complaint by the 2020 presidential hopeful andThe company then filed for bankruptcy protection the same year and the federal government later ruled that as many as 335,000 former students could be entitled to have their debts cancelled under The Borrower Defense to Repayment program—an initiative started in 2016...

Instead of showing their compliance with the loan relief program, Education Department filings revealed that they instead were still pursuing students for loan repayment and had only pardoned 10 student loans.

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