In the News
“The student-loan lobby claims to support students and their families,” said Seth Frotman, executive director of the Student Borrower Protection Center and former top student loan official at the Consumer Financial Protection Bureau. “But the reality is that executives are profiting enormously off of a broken system that leaves so many borrowers crippled in debt. Over the decades, we’ve seen a revolving door of lobbyists peddle policies designed to exploit the pursuit of the American dream.”
“The decision is an enormous victory for student loan borrowers, state attorneys general and every American who rejects the idea that big companies should be able to trample on borrowers’ rights with impunity,” said Frotman, who now runs the Student Borrower Protection Center.
Civil rights organizations are urging the director of the Consumer Financial Protection Bureau to step up oversight of the student-loan servicing industry and root out discrimination.
Student Borrower Protection Center Executive Director and former CFPB Student Loan Ombudsman Seth Frotman issued a statement on the congressional inquiry announced yesterday into the Trump Administration’s failure to protect student loan borrowers, including obstruction of law enforcement officials by senior Trump Administration officials and abuses by the student loan servicing industry.
Tomorrow marks one hundred fifty days since Consumer Financial Protection Bureau (CFPB) Director Kathy Kraninger committed to quickly filling the nation’s top student loan watchdog position—a role that has been vacant for almost a year. As student debt nears $1.6 trillion and predatory practices plague the market, the Student Borrower Protection Center (SBPC) and Americans for Financial Reform Education Fund (AFREF) are releasing a roundup of failures by the current CFPB Director to stand up for student loan borrowers.
Today, the Inspector General of the U.S. Department of Education released a sweeping audit of the federal government’s flailing effort to police the student loan industry. This new audit finds that the Education Department’s student loan arm, the Office of Federal Student Aid (FSA), failed to oversee all nine student student loan companies responsible for handling accounts for tens of millions of Americans.
Keynote remarks of Seth Frotman in conjunction with the release of the San Francisco Federal Reserve Bank’s paper, At What Cost?: Student Loan Debt in the Bay Area.
Testimony of Seth Frotman at the California Assembly Committee on Banking and Finance hearing: An Examination of the CFPB under the current Federal Administration and Options for California to Protect its Consumers.
Testimony of Seth Frotman at the House Financial Services Committee hearing: Putting Consumers First? A Semi-Annual Review of the Consumer Financial Protection Bureau.