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NEW YORK (AP) — The government’s top official overseeing the $1.5 trillion student loan market resigned in protest on Monday, citing what he says is the White House’s open hostility toward protecting the nation’s millions of student loan borrowers.
Seth Frotman will be stepping down as student loan ombudsman at the end of the week, according to his resignation letter, which was obtained by The Associated Press. He held that position since 2016, but has been with Consumer Financial Protection Bureau since its inception in 2011.
The article goes on to state the following:
Frotman is the latest high-level departure from the CFPB since Mick Mulvaney, President Donald Trump’s budget director, took over in late November. But Frotman’s departure is especially noteworthy, since his office is one of the few parts of the U.S. government that was tasked with handling student loan issues.
“You have used the bureau to serve the wishes of the most powerful financial companies in America,” Frotman wrote, addressing his letter directly to Mulvaney.
Congress specifically created the student loan ombudsman office when it created the CFPB, citing a need for there to be a specific go-to person to handle student loan complaints nationwide. One previous occupant of that position is Rohit Chopra, who is now a commissioner at the Federal Trade Commission.
The position is quite powerful, able to work with the bureau’s enforcement staff to specifically target bad behavior in the student loan market as well as act as a voice inside the government on behalf of student loan borrowers. The office has returned $750 million to harmed borrowers since its creation.
Powerful words from Seth Frotman, a CFPB official who just resigned out of frustration that the Bureau created to protect consumers is no longer protecting consumers https://t.co/TSL6n0ouDj pic.twitter.com/NqiXPjD3GY
— Brianne Gorod (@BrianneGorod) August 27, 2018
🚨 MUST READ 🚨
Scathing resignation letter from @CFPB Student Loan Watchdog Seth Frotman to Mick Mulvaney: “Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting.” #ProtectConsumers #DefendStudents #HigherEd pic.twitter.com/PxndMslfto
— Allied Progress (@AlliedProgress) August 27, 2018
JUST IN: The top student loan watchdog at the Consumer Financial Protection Bureau, Seth Frotman, has resigned, saying that he’s leaving the job because the bureau’s efforts to protect student borrowers have been undermined by the Trump administration. https://t.co/6Tcb76FzNX
— NPR Politics (@nprpolitics) August 27, 2018
In a scathing resignation letter, Seth Frotman, top student loan watchdog at CFPB, said the current leadership “has turned its back on young people and their financial futures. Instead, you used the Bureau to serve the wishes of the most powerful financial companies in America.” pic.twitter.com/6DPnwBocOr
— Maggie Jordan: (@MaggieJordanACN) August 27, 2018
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