ICYMI: Defrauded Corinthian Students Push For Higher Contempt Fine Against Education Secretary Betsy Devos – Politico
Former Corinthian Colleges students asked a federal judge to “substantially” increase the $100,000 fine against DeVos.
— U.S. Magistrate Judge Sallie Kim imposed the fine on the department and DeVos in October after they violated Kim’s May 2018 order to stop collecting on the Corinthian loans.
— The motion filed by the Corinthian borrowers asked the judge to consider ordering a “significant increase” to the financial sanctions, though it does not recommend a dollar amount. Attorneys for students argued in a court filing that greater financial sanctions are needed after the Education Department admitted it had erroneously collected on the loans of more than 45,000 borrowers. That is nearly triple the number the department initially reported.
— The attorneys also submitted new evidence to the court showing for the first time the financial and other stress that Corinthian borrowers faced as a result of the department’s illegal collection on their loans. They included: being evicted from their homes and forced to pay late fees as they fell behind on bills and had to borrow money from elsewhere, often at higher interest rates, to cover their debts.