Mnuchin and DeVos Sued for Unlawful Seizure of Student Loan Borrowers' Tax Refunds During Pandemic
Mnuchin and DeVos Sued for Unlawful Seizure of Student Loan Borrowers' Tax Refunds During Pandemic
"Secretaries DeVos and Mnuchin have inflicted needless financial pain on student borrowers and their families."
by Jessica Corbett, staff writer, Common Dreams
https://www.commondreams.org/news/2020/05/29/mnuchin-and-devos-sued-unlawful-seizure-student-loan-borrowers-tax-refunds-during
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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 administration has shown an utter disregard for the law and the needs of student loan borrowers during this difficult time, and their botched rollout of CARES Act protections is causing real suffering for families across the nation."
—Alice Yao, Student Defense
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.
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They have done analysis that financial anxiety makes people vote intuitively rather than rationally. Look at the former union members who voted for Trump. No doubt Devos and Mnuchin want to impose financial anxiety on people just starting their lives so they vote with 'strongmen' and against minorities and not for their family's financial self interests. Counter intuitive. But the GOP has been fomenting financial anxiety in people for 40 years. I think the jig is up. I hope.
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