DeVos To Court: We're Still Seizing Borrowers' Wages, Violating The CARES Act
Source: Forbes
Jul 8, 2020,11:52am EDT
DeVos To Court: Were Still Seizing Borrowers Wages, Violating The CARES Act
Adam S. Minsky, Esq.Senior Contributor
Personal Finance
Im an attorney focused on helping student loan borrowers.
The U.S. Department of Education disclosed in a recent court filing that it continues to garnish the wages of student loan borrowers in default on their federal student loans, in direct violation of the CARES Act.
The CARES Act suspended all wage garnishments for borrowers in default on their government-held federal student loans, retroactive to March 13, 2020. But despite the mandate to immediately stop seizing borrowers wages, the Education Department under Secretary DeVos has continued to garnish the paychecks of thousands of borrowers.
Student loan borrowers filed a class-action lawsuit against Secretary DeVos in May to force the Department of Education to comply with the CARES Act and stop the ongoing wage garnishments. As a result of the pending lawsuit, Barber v. DeVos, the Department promised to try harder to stop wage garnishments, and agreed to submit regular reports to the court about the garnishment status of defaulted student loan borrowers.
The Education Department submitted its most recent report to the court on June 29. In that report, the Department disclosed that, more than three months after the Department was supposed to stop garnishing wages, it continues to garnish the wages of approximately 4,300 student loan borrowers (roughly 1.1% of the 390,000 borrowers who were subject to garnishment when the CARES Act first went into effect). The Department indicated it has been trying to refund the illegal garnishments by mailing refund checks directly to student loan borrowers, but not all borrowers have been refunded.
A Department of Education spokesperson previously defended the Departments efforts, and shifted the responsibility of ending garnishments to employers. ...
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Read more: https://www.forbes.com/sites/adamminsky/2020/07/08/devos-to-court-were-still-seizing-borrowers-wages-violating-the-cares-act/#45bfd7409827
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