In the News: Lawsuit alleges the government is illegally garnishing tax refunds of student-loan borrower

June 20, 2019

By Jillian Berman

For MarketWatch

For the past few years, 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.

But it’s debt the government shouldn’t be collecting on in the first place, a new lawsuit alleges.

The suit, filed on behalf of Blanchette and similarly situated borrowers, alleges that Betsy DeVos and the Department of Education are collecting on debt that isn’t legally enforceable.

That’s because the Department knows that Blanchette and other students who enrolled in the criminal-justice program at the Minnesota School of Business, a now defunct for-profit college chain, were defrauded by the school when they signed up for the program, according to court documents.

For more information click on link below:

https://www.marketwatch.com/story/lawsuit-alleges-the-government-is-illegally-garnishing-tax-refunds-of-student-loan-borrowers-2019-06-19

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