Latest News and Comment from Education

Thursday, January 9, 2020

CURMUDGUCATION: DeVos and Department May Face Increased Fine

CURMUDGUCATION: DeVos and Department May Face Increased Fine

DeVos and Department May Face Increased Fine


Back in October, Secretary of Education Betsy DeVos and her department were fined $100,000 for contempt of court regarding their non-compliance with a court order to stop collecting loans from students bilked by a chain of fraudulent for-profit colleges. Turns out that price tag could get a little steeper.

In October, the department said that, oopsies, they had continued to collect from about 16,000 students and parents. The "oopsy" was a little hard to believe, given that DeVosd has been abundantly clear that she does not believe that defrauded students should have their loans forgiven. If they are making money now, then too bad about the loan. As she told the House Education Committee when they tried to rake her over some coals on this matter:

I understand that some of you here just want to have blanket forgiveness for anyone who raises their hand and files a claim, but that simply is not right.

So maybe the department made a few clerical errors. Or maybe DeVos just decided she would drag her heels as hard as possible against the injunction against collection from May 2018, as witnessed by the loans forgiven by the previous administration which she signed off "with extreme displeasure" and by her attempts rewrite the rules for loan cancellation.

Judge Sallie Kim was pretty cranky when she offered the October ruling (“I’m not sending anyone to CONTINUE READING: 
CURMUDGUCATION: DeVos and Department May Face Increased Fine