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The Consumer Financial Protection Bureau’s student loan ombudsman announced his resignation from his position early this week. In his resignation letter, which was published on NPR.org, Seth Frotman discussed the need for entities such as the CFPB.
“For many, the CFPB has served as a lifeline – cutting through red tape, demanding systematic reforms when borrowers are harmed, and serving as the primary financial regulator tasked with holding student loan companies accountable when they break the law,” he wrote.
The bureau has been responsible for the return of more than $750 million to borrowers of student loans, he added.
Frotman included strong language about the current administration and the CFPB’s acting director Mick Mulvaney in his resignation letter, alleging they don’t have the best interest in their minds for college students who seek loans.
An ombudsman is an official who is appointed to look into complaints lodged against administrations – they are viewed as public advocates. And protecting borrower’s rights is an important task because currently there is more than $1.5 trillion collectively in student loans in the U.S. The student loan industry has become a big, lucrative business and it appears to grow every year as a secondary education becomes more expensive for students to obtain.
Shannon Serpette is a mother of two and an award-winning journalist and freelancer who lives in Illinois. When she’s not spending time with her children, she is often pursuing her favorite hobbies – running, metal detecting, kayaking, and reading about personal finance.