Lawyers for former Corinthian College students are asking a federal judge in San Francisco to increase the amount of sanctions the Department of Education must pay for violating a court order barring the collection of certain student loan payments.
Lawyers at Housing and Economic Rights Advocates in Oakland and the Legal Services Center of Harvard Law School have asked U.S. District Magistrate Judge Sallie Kim of the Northern District of California to reconsider the $100,000 sanction order she issued in October. Kim in May issued an order putting a hold on all government collection on loans that were subject to “borrower defense” to repayment, or the contention that borrowers were defrauded by the for-profit school. The judge held Education Secretary Betsy DeVos and the Education Department in contempt and sanctioned them in October for continuing to collect on loans despite her order.
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