DeVos and Mnuchin Sued for Seizing Tax Refunds of Student Debtors

How cruel can Betsy DeVos and Steven Mnuchin be? As people of great wealth and privilege, they have not a thought for those who have been impoverished by the pandemic.

Both have been sued in a class-action lawsuit on behalf of student debtors whose tax refunds they sought to garnish.

Jessica Corbett writes in Common Dreams:

Treasury Secretary Steven Mnuchin, Education Secretary Betsy DeVos, and the federal departments they run were hit with a class-action lawsuit Friday for illegal seizures of thousands of student borrowers’ tax refunds during the coronavirus pandemic, which has left over 40 million Americans jobless and familes across the country struggling to stay in their homes and keep food on the table.

The suit (pdf)—filed by Student Defense and Democracy Forward in the U.S. District Court for D.C.—accuses the Education and Treasury departments of violating the Coronavirus Aid, Relief, and Economic Security Act (CARES) Act from late March, which halted all involuntary collection of federal student loans, including tax refund offsets, until the end of September.

“Secretaries DeVos and Mnuchin have inflicted needless financial pain on student borrowers and their families by failing to stop the illegal seizures of their tax refunds,” Democracy Forward senior counsel Jeffrey Dubner said in a statement.

“The turmoil caused by the ongoing pandemic is no excuse for breaking the law,” Dubner added. “Our class-action suit seeks to hold the administration accountable so that student borrowers can stay on their feet during this crisis.”

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