Attorney General Becerra: Education Secretary DeVos, Obstructing Student Debt Relief, Held in Contempt

SACRAMENTO – California Attorney General Xavier Becerra today issued the following statement after the U.S. District Court for the Northern District of California found federal Education Secretary Betsy DeVos in contempt in Calvillo Manriquez v. DeVos. Judge Sallie Kim held DeVos in contempt for failing to adhere to her District Court Order that the Department of Education stop its attempt to collect on loans owed by tens of thousands of students defrauded by the now-defunct Corinthian Colleges. The court is also hearing Attorney General Becerra’s lawsuit against the Department over its failure to process debt-relief claims on the loans of former Corinthian students. These separate lawsuits are proceeding together in coordination.

“We applaud the court for holding Secretary DeVos accountable for violating both the court order and her duty under the law to protect students,” said Attorney General Becerra. “These students were already cheated out of their education by Corinthian, and then the Department of Education cheated them again. We hope this order will be a stern wake-up call for Secretary DeVos and the Department of Education. Betsy DeVos should be fighting for our students, not doing the bidding of predatory for-profit colleges.”

On October 11, 2018, Attorney General Becerra also submitted an amicus brief in support of these students and the District Court Order halting the U.S. Department of Education from its practice of giving only partial relief to students. 

Attorney General Becerra has defended defrauded student borrowers and the Borrower Defense Rule at every turn: 

• On July 6, 2017, he joined a coalition of 19 state attorneys general in filing a lawsuit against the Department of Education for unlawfully delaying the implementation of the Rule.
• On July 13, 2017, he joined a coalition of 21 state attorneys general in criticizing the Department for proposing a new rulemaking process to replace the Rule.
• On March 5, 2018, he led a coalition of 20 state attorneys general in submitting a letter to the Department opposing the proposals it offered during its rulemaking sessions to redraft regulations on borrower defense.
• On August 30, 2018, he led a coalition of 21 attorneys general to submit a comment letter sharply rebuking the Department’s proposed changes to borrower defense regulations.
• On August 30, 2019, Attorney General Becerra issued a statement in response to the Department’s announcement of its proposal to replace the Borrower Defense Rule.