Top Student Loan Official Resigns After Trump & GOP Turn Back on Students

Sometimes Republicans give away the entire game without realizing it.  OUR Consumer Financial Protection Bureau (CFPB), designed to protect us, is doing just the opposite.  Want proof?

Check out the CFPB official web site on Student Loans by CLICKING HERE.  On the right-hand side is a section titled "HOW THE CFPB IS PROTECTING YOU."  We were curious to see what Mick Mulvaney, Trump, and his cronies would dare list under here.  And there's the rub.... NOTHING.  The most recent post is dated January 18, 2017, the final days of President Obama's term.

Are you getting the picture now?  Trump's Republican Administration is doing NOTHING to protect stuents and in fact is purposely inflicting pain on them as Betsy DeVos works on behalf of lenders and fraudulent for-profit schools.

The federal official in charge of protecting student borrowers from predatory lending practices has stepped down.

In a scathing resignation letter, Seth Frotman, who until now was the student loan ombudsman at the Consumer Financial Protection Bureau, says current leadership "has turned its back on young people and their financial futures." The letter was addressed to Mick Mulvaney, the bureau's acting director.

Frotman accuses Mulvaney and the Trump administration of undermining the CFPB and its ability to protect student borrowers.

"Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting," it read. "Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America."

Frotman has served as student loan ombudsman for the past three years. Congress created the position in 2010, in the wake of the financial crisis, as part of the Dodd-Frank Wall Street Reform and Consumer Protection Act. As ombudsman and assistant director, Frotman oversaw the CFPB's Office for Students and Young Consumers and reviewed thousands of complaints from student borrowers about the questionable practices of private lenders, loan servicers and debt collectors.

This office has been incredibly successful in protecting our young students, changing their lives for the better while holding fraudulent schools and lenders responsible for their theft.

Since 2011, the CFPB has handled more than 60,000 student loan complaints and, through its investigations and enforcement actions, returned more than $750 million to aggrieved borrowers. Frotman's office was central to those efforts. It also played a role in lawsuits against for-profit giants ITT Tech and Corinthian Colleges and the student loan company Navient.

In his resignation, Frotman also accuses the CFPB's leadership of suppressing a report, prepared by his office, revealing new evidence that some of the nation's largest banks were "saddling [students] with legally dubious account fees."

Sickening.  Destroying our nation's future for corporate profits of their overlords.

Sources: 

https://apnews.com/5fa24ab9eafb456089fb9ff1a22ec694

https://www.npr.org/2018/08/27/642199524/student-loan-watchdog-quits-blames-trump-administration

https://www.consumerfinance.gov/consumer-tools/student-loans/