A federal judge in San Francisco rebuked Education Secretary Betsy DeVosBetsy DeVosGOP lawmakers urge Cardona against executive student loan wipeout More insidious power grab than one attempted Jan. 6? Betsy DeVos not running for Michigan governor MORE for continuing to collect debt payments from students after she had been ordered to stop by a court order, Bloomberg reports.
U.S. Magistrate Judge Sallie Kim was far from happy with DeVos in a hearing that took place Monday in San Francisco.
“At best, it is gross negligence,” Kim told lawyers representing the department at the hearing. “At worst, it’s intentional flouting of my order.”
“I'm not sending anyone to jail yet, but it's good to know I have that ability," she noted. "There have to be some consequences for the violation of my order 16,000 times."
The number 16,000 refers to the total count of students from the now-defunct for-profit Corinthian College that were contacted about repaying federal loans that were supposed to be forgiven.
In May 2018, Kim issued a court order that instructed DeVos to stop collecting loans from the former students. Instead, the Department of Education seized payroll and tax refunds from nearly 2,000 students, the vast majority of whom have not yet been refunded their money.
According to Forbes, the Borrower Defense to Repayment program that was restructured by the Obama administration in 2016 allows students to apply for debt forgiveness if their college engaged in deceptive or predatory practices. However, when DeVos became Education Secretary in 2017, she essentially gutted the rule.
Justice Department attorney Charlie Merritt, who represents DeVos and the Education Department, told Kim that the agency takes "responsibility" and "will bring ourselves into full compliance."
In addition to the criticism, Kim agreed to lift a hold on the original lawsuit filed by the Corinthian College students. The hold had been in place since President TrumpDonald TrumpTrump takes shot at new GOP candidate in Ohio over Cleveland nickname GOP political operatives indicted over illegal campaign contribution from Russian national in 2016 On The Money — Dems dare GOP to vote for shutdown, default MORE filed an appeal of Kim's original decision in July 2018.
"I'm so concerned about this violation of the order that I think the stay is gone,” Kim noted in the hearing.
“We're going to do everything full speed ahead from this point forward,” she said.