DeVos Caught! Hand in COVID-19 Cookie Jar
(FinancialHealth.net) – In March, Education Secretary Betsy DeVos announced her department would stop efforts to collect student loan debt for 60 days. She said it was to relieve stress on Americans who are trying to make it through the COVID-19 pandemic. The CARES Act also prohibits the government from garnishing borrowers’ wages through September 30. Unfortunately, it seems that didn’t happen, and now Sec. DeVos is being sued.
On April 30, the National Consumer Law Center and the National Student Legal Defense Network filed a lawsuit against the secretary and her department. The advocacy groups are representing a home health aide from New York, Elizabeth Barber, who claims her wages are still being garnished.
The lawyers are seeking class-action status.
U.S. Dept. of Education and Secretary DeVos Sued for Illegally Seizing Student Borrowers’ Paychecks During Coronavirus Emergency https://t.co/bC0epy1YXO
— Oscar (@PotemkinLion) May 3, 2020
In an email to CNN, Spokeswoman Angela Morabito said the Dept. of Education “has taken immediate action” to stop employers from garnishing wages. If someone has had money seized, they’ll receive a refund.
Borrowers are rightfully angry about the situation. It seems Secretary DeVos didn’t do enough to prevent the illegal seizure of people’s wages. On the other hand, officials are trying to remedy the situation now. Hopefully, everyone will be made whole soon and the secretary will prevent this from happening again.
~Here’s to Your Financial Health!
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