The Washington Post reports:
A federal judge on Thursday held Education Secretary Betsy DeVos in contempt for violating an order to stop collecting loan payments from former Corinthian Colleges students. Magistrate Judge Sallie Kim of the U.S. District Court in San Francisco slapped the Education Department with a $100,000 fine for violating a preliminary injunction.
Money from the fine will be used to compensate the 16,000 people harmed by the federal agency’s actions. 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 it was disappointed in the court’s ruling. Attorneys for the borrowers proposed an array of sanctions, including fining DeVos $500 per day until the Education Department is fully compliant with the original court order.
We’re disappointed in the court’s ruling. We acknowledged that servicers made unacceptable mistakes. @BetsyDeVosED directed @FAFSA to take immediate action to help every impacted borrower. As of today, @FAFSA has taken the actions needed to make every impacted borrower whole. pic.twitter.com/10kgh63bhH
— U.S. Department of Education (@usedgov) October 25, 2019