Advocacy Group Seeks Contempt Charge Against Education Department

The Project on Predatory Student Lending filed a court motion to hold the U.S. Department of Education in contempt for failing to provide legally required debt relief to more than 1,000 borrowers. The motion arises from the Sweet v. McMahon settlement, a legal agreement that has already delivered $23 billion in relief to over 500,000 borrowers.

The advocacy group alleges the department missed critical deadlines for loan discharges and refunds. In addition to compelling compliance, the group is requesting that the court order the resumption of weekly status meetings to monitor progress.

The U.S. Department of Education dismissed the motions as "baseless." A departmental ombudsman stated that delays resulted from the necessity of further review for complex accounts rather than a failure of the department. A public hearing on the contempt motion is scheduled for November 5.