Case 5:17-cv VAP-KK Document 32 Filed 09/07/17 Page 1 of 3 Page ID #:513 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA

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1 Case :-cv-00-vap-kk Document Filed 0/0/ Page of Page ID #: 0 0 SANDRA R. BROWN Acting United States Attorney DOROTHY A. SCHOUTEN Assistant United States Attorney Chief, Civil Division INDIRA J. CAMERON-BANKS (Cal. Bar No. ) Assistant United States Attorney Federal Building, Suite 00 North Los Angeles Street Los Angeles, California 00 Telephone: () - Facsimile: () - Indira.J.Cameron-Banks@usdoj.gov Attorneys for Federal Defendant SARAH DIEFFENBACHER, v. Plaintiff, BETSY DEVOS, in her official capacity as Secretary of the United States Department of Education, Defendant. UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA Case No.: :-cv--vap (KKKx) FEDERAL DEFENDANT S STATUS REPORT [DECLARATION OF MYRA TYLER] [DECLARATION OF JAMES MANNING] Honorable Virginia A. Phillips Plaintiff Sarah Dieffenbacher ( Plaintiff ) initiated this declaratory relief action under the Administrative Procedures Act U.S.C. 0, ( APA ) to challenge a January 0, 0 Department of Education ( DOE ) decision to garnish her wages based on an outstanding student loan debt that she was seeking to discharge. On June, 0, the Court directed DOE to file this report on or before September, 0, regarding the status of Plaintiff s wage garnishment and underlying student loan debt.

2 Case :-cv-00-vap-kk Document Filed 0/0/ Page of Page ID #: 0 0. Plaintiff incurred student loan debt to attend Everest College. (Declaration of DOE Hearings and Interagency Appeals Branch Supervisory Program and Management Analyst, Myra Tyler, [ Tyler Decl. ].) DOE has offered options for debt relief for students that attended Everest College, including discharge. (Id. at ; corinthian#fraudviolations-state-law.). In March 0, Plaintiff applied for discharge of her student loan debt pursuant to the borrower defense grounded in C.F.R..0(g), allowing a borrower to assert all claims and defenses against a holder of a loan that the borrower could assert against the school. (Tyler Decl. and.). On January 0, 0, DOE s Hearings and Interagency Appeals group issued the administrative wage garnishment decision based on the underlying student loan debt. (Tyler Decl..). On June, 0, DOE withdrew the challenged January 0, 0 administrative wage garnishment decision on the grounds that it failed to consider the pending application for discharge of the student loan debt. (Tyler Decl. 0.). The June, 0 decision informed Plaintiff that all of the student loan debt, including the privately-held debt giving rise to the administrative wage garnishment decision, has been assigned to DOE and placed in forbearance status pending a decision on the pending application for discharge of the underlying student loan debt. (Id.). Plaintiff s application for discharge of the underlying student loan debt is pending with DOE, which is reviewing applications seeking relief for claims similar to Plaintiff. (Declaration of DOE Acting Under Secretary James Manning, [ Manning Decl. ] 0.) DOE will issue a decision on Plaintiff s discharge application within six months (on or before March, 0) as part of a Pursuant to the March, 0 agreement of the parties, Plaintiff s wages have not been garnished at any time before June, 0. (Dkt. No..)

3 Case :-cv-00-vap-kk Document Filed 0/0/ Page of Page ID #: 0 0 larger group of decisions being issued regarding similar claims, and any interest accrued on the student loan debt since March, 0 will be forgiven. (Id.) DATED: September, 0 Respectfully submitted, SANDRA R. BROWN Acting United States Attorney DOROTHY A. SCHOUTEN Assistant United States Attorney Chief, Civil Division /s/ Indira J Cameron-Banks INDIRA J. CAMERON-BANKS Assistant United States Attorney Attorneys for Federal Defendant

4 Case :-cv-00-vap-kk Document - Filed 0/0/ Page of Page ID #: 0 0 UNITED STATES DISTRICT COURT CENTRAL DISTRICT OF CALIFORNIA SARAH DIEFFENBACHER, : Plaintiff, : v. : Case No. -cv- BETSY DEVOS, ET. AL. : Defendant. : DECLARATION OF MYRA TYLER I, Myra Tyler, make the following declaration under U.S.C.. Position and Job Responsibilities. I am a Supervisory Program and Management Analyst in Hearings and Interagency Appeals Branch, Operation Services, Business Operations, Office of Federal Student Aid, U.S. Department of Education ( Education ). I have held this position since April, 0.. As a Supervisory Program and Management Analyst, my responsibilities include supervising hearings and appeals process concerning administrative wage garnishment and treasury offsets, including appeals from guarantee agency determinations.. In the course of performing my responsibilities, I have become familiar with the various types of loans authorized by Title IV of the Higher Education Act of, as amended ( HEA ), and made by banks, by institutions of higher education, and by Education itself, and now held and collected by Education. I am also familiar with: () how Education receives information and creates and maintains records related Declaration of Myra Tyler

5 Case :-cv-00-vap-kk Document - Filed 0/0/ Page of Page ID #: 0 0 to those loans, () the collection methods used by Education to collect these loans, including the Treasury Offset Program ( TOP ) and Administrative Wage Garnishment, () the various repayment plans and deferment or forbearance options available to Title IV borrowers, () the administrative discharge options available under the HEA including discharge for borrower defense to repayment.. I make the following factual statements based on my personal knowledge. If called as a witness, I could and would competently testify thereto.. Plaintiff Sarah Dieffenbacher ( Plaintiff ) has student loan debt related to Everest College. Some of this debt is federally-held, meaning that the loans were either taken pursuant to the Direct Student Loan Program, Title IV-D of the HEA (0 U.S.C. 0a et seq.) (Regulations found in C.F.R. Part ) or taken under the Federal Family Education Loan Program ( FFELP ), Title IV-B of the HEA (0 U.S.C. 0 et seq.) (Regulations found in C.F.R. Part ) and assigned to Education after default. Some of this debt is privately-held, meaning that the loans were taken under the FFEL program and are being held by private Title IV program participants, such as lenders or, if the loan is in default, private guarantors.. DOE has offered options for debt relief for certain groups of students who attended Everest College, including discharge. These options, which include discharge of the debt, are generally described at the following: ( Plaintiff has applied to discharge her student loan debt incurred for attending Everest College on the basis of the borrower defense to repayment regulation. C.F.R..0 & C.F.R..0. Pursuant to DOE s procedures, such claims are reviewed by DOE s Borrower Defense group, a group of attorneys trained in evaluating borrower defense claims.. The Administrative Wage Garnishment ( AWG ) Decision was issued on January 0, 0 by DOE s Hearings and Interagency Appeals group pursuant to C.F.R. Part regulations. Declaration of Myra Tyler

6 Case :-cv-00-vap-kk Document - Filed 0/0/ Page of Page ID #: Declaration of Myra Tyler

7 Case :-cv-00-vap-kk Document - Filed 0/0/ Page of Page ID #: Declaration of James Manning

8 Case :-cv-00-vap-kk Document - Filed 0/0/ Page of Page ID #:0 Declaration of James Manning