A lawsuit filed Thursday against Secretary DeVos alleges the Education Department continued taking a percentage of some loan borrowers' paychecks after the CARES Act called for a temporary stop to the practice.
A class action lawsuit filed Thursday against the U.S. Department of Education and Secretary Betsy DeVos alleges the department continued to collect wages from student loan borrowers after the Coronavirus Aid, Relief, and Economic Security Act put a halt on such activities.
Though DeVos said in a news release on March 25 that wage garnishments would stop, the lawsuit filed by Student Defense and the National Consumer Law Center alleges such activity has continued. Betsy DeVos listens as President Donald Trump speaks during a briefing on the coronavirus pandemic at the White House on March 26. A lawsuit filed Thursday alleges DeVos and the Education Department have continued wage garnishment procedures in spite of the CARES Act passed in late March.The lawsuit calls for the department to stop wage garnishment and return funds taken during the freeze to all loan borrowers impacted—including Elizabeth Barber, the 59-year-old plaintiff named in the case.
Information on the department's website indicates officials anticipated wage garnishment activity might have continued despite DeVos' order for it to stop. In its March 25 release, the department said it"must rely on employers to make the change to borrowers' paychecks" and recommended borrowers contact their employers directly to coordinate the necessary changes.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Betsy DeVos sued for seizing wages from student loan borrowers during pandemicEducation Secretary Betsy DeVos and her department were sued Thursday for allegedly continuing to collect on defaulted borrowers' student loans -- more than a month after she said it would stop doing so to provide relief during the coronavirus outbreak.
Read more »
DeVos sued for seizing student loan borrowers' wages during pandemicThe proposed class action lawsuit claims that the Education Department hasn’t actually halted the practice and is continuing to garnish wages in violation of the CARES Act
Read more »
Student sues New Jersey university for 'subpar' online classes, seeks tuition refundA film student at Montclair State University filed a class action lawsuit for tuition refunds after the university switched to online classes.
Read more »
Small-business loan program discriminates against women and minorities, lawsuit allegesA class-action lawsuit alleges the Paycheck Protection Program is discriminating against women and minorities, who are more likely to own businesses without employees.
Read more »
Walmart, Costco and Trader Joe’s accused of inflating egg prices amid coronavirus pandemicWalmart, Costco, Trader Joe’s, Kroger and dozens of other food retailers have been accused of illegally inflating the price of eggs sold in California amid coronavirus pandemic.
Read more »
DeVos sued for seizing student loan borrowers' wages during pandemicThe proposed class action lawsuit claims that the Education Department hasn’t actually halted the practice and is continuing to garnish wages in violation of the CARES Act
Read more »