Student loan borrowers sue Betsy DeVos and Steven Mnuchin over seized tax refunds
Consumer advocates are suing Education Secretary Betsy DeVos and Treasury Secretary Steven Mnuchin for their departments failure to stop seizing student loan borrowers tax refunds to pay for their defaulted loans, despite declaring that it would stop doing so on March 25.
The class action suit was filed by nonprofit organizations Student Defense and Democracy Forward against the Department of Treasury, the Department of Education (ED), Steven Mnuchin, and Betsy DeVos on May 29 in the U.S. District Court for the District of Columbia.
The group alleges that despite millions of Americans losing their jobs amid the pandemic, the Treasury seized more than $18 million in tax refunds from over 11,000 borrowers in April 2020.
In the middle of this devastating pandemic, Secretary Mnuchin and Secretary DeVos have been illegally offsetting tax refunds of student borrowers despite clear instructions from Congress and the president to stop, Alice Yao, senior counsel at Student Defense, said in a statement. The administration has shown an utter disregard for the law and the needs of student loan borrowers during this difficult time, and their botched rollout of CARES Act protections is causing real suffering for families across the nation.
https://finance.yahoo.com/news/student-loan-borrowers-sue-betsy-de-vos-steven-mnuchin-over-seized-tax-refunds-133736508.html