Washington, D.C.— Today, the circumstances surrounding the resignation of Student Loan Ombudsman Seth Frotman from the Consumer Financial Protection Bureau (CFPB), the top watchdog agency looking out for consumers, made abundantly clear that the Trump administration has fully abandoned struggling student loan borrowers. Maggie Thompson, executive director of Generation Progress, released the following statement:
CFPB Ombudsman Seth Frotman’s letter to Acting Director Mick Mulvaney clearly shows that the Trump administration is leaving young people and student loan borrowers to fend for themselves. This Administration has put their mega-rich friends from the debt collection, student loan, and for-profit college industries first, and left student loan borrowers to struggle. As his letter notes, Acting Director Mick Mulvaney has abandoned consumers and borrowers most at risk of being cheated and exploited by greedy for-profit colleges and loan companies. At a time when the Department of Education is protecting predatory student loan companies from state enforcement efforts, and banks continue to rip off students by saddling them with legally dubious accounting fees, we need an independent CFPB headed by someone who allows public servants to do the job that Congress has outlined for the bureau—protect consumers.
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