SAN FRANCISCO — U.S. Secretary of Education Betsy DeVos was threatened with possible sanctions or finding she's in contempt of court for a student loan case that is in federal courts.
Bloomberg reports that U.S. Magistrate Judge Sallie Kim said, “I’m not sure if this is contempt or sanctions" at a hearing Monday.
“I’m not sending anyone to jail yet but it’s good to know I have that ability," Kim said.
The case involved student borrowers who attended Corinthian Colleges, a for-profit educational chain, that closed in 2015.
In December, the Education Department said it would forgive loans for students swindled by their colleges following a ruling from a federal judge. However, Bloomberg said that the department continued to collect of the debt of students at Corinthian Colleges, even seizing their tax refunds and wages.
The judge said she was "astounded" by the Education Department's violation of the order. She said at best it was negligence, at worse it was intentionally ignoring the order, Bloomberg reports.
About 15,000 students were supposed to have their student loans forgiven as a part of the ruling.
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