Dept. Of Education Discloses It Is Illegally Seizing Wages Of 54,000 Borrowers
A lawsuit titled Elizabeth Barber v. DeVos was filed in the United States District Court for the District of Columbia. It accuses the Department of Education and Secretary Betsy Devos of failing to stop student loan wage garnishments even though the CARES Act should have suspended all payments, according to Forbes.
- More than 54,000 borrowers continue to have their wages garnished even though the CARES Act went into effect March 13 -- about eight weeks ago.
- Some of the borrowers filed a lawsuit in early May to force the department to comply with the CARES Act.
- One out of eight borrowers whose wages were being garnished before the pandemic are still seeing their wages cut.
- The National Student Loan Legal Defense Network, National Consumer Law Center, and the Student Borrower Protection Center are representing the borrowers.
- The Department of Education did not say whether they will suspend ongoing wage garnishments, but they did indicate that they would continue discussions with plaintiffs to try and reach a resolution.