Lawsuit alleges the federal government is illegally garnishing income tax refunds of student-loan borrowers

Lawsuit alleges the federal government is illegally garnishing income tax refunds of student-loan borrowers

Posted: 23, 2019 7:31 a. M june. ET

The federal government is accused of unlawfully gathering on student education loans held by defrauded borrowers

JillianBerman

The government has been taking pains to collect on Tamara Blanchette’s student loans — garnishing some of the money she receives through her tax refund for the past few years.

Nonetheless it’s debt the federal government shouldn’t be collecting on within the beginning, a brand new lawsuit alleges.

The suit, filed on the behalf of Blanchette and likewise situated borrowers, alleges that Betsy DeVos as well as the Department of Education are gathering on financial obligation this is certainlyn’t lawfully enforceable.

That’s as the Department understands that Blanchette as well as other students whom signed up for the criminal-justice system in the Minnesota class of company, a now defunct college that is for-profit, had been defrauded by the college if they enrolled in this system, based on court papers.

The suit, filed on the behalf of Blanchette and likewise situated borrowers, alleges that Betsy DeVos and also the Department of Education are gathering on financial obligation this is certainlyn’t lawfully enforceable.

Borrowers who had been defrauded by their schools have the ability to have their financial obligation discharged.

“There’s this number of pupils that the Department of Education is aware of who have been defrauded, ” said Robyn Bitner, counsel during the National Student Legal Defense Network, who’s representing Blanchette. “Despite knowing about them being defrauded, the Department has chose to gather on it. ”

The Department of Education declined to discuss pending litigation. A lawyer representing Minnesota class of company didn’t straight away answer a request touch upon the allegations. „Lawsuit alleges the federal government is illegally garnishing income tax refunds of student-loan borrowers“ weiterlesen