In the News
September 19, 2019 | Navient memo raises questions about its student loan servicing practices
“The evidence unsealed in federal court confirms that Navient’s practices that added billions of dollars of debt to struggling borrowers emanated from the top echelon of the company,” said Seth Frotman, executive director of the Student Borrower Protection Center, an advocacy group. “The time has come for policymakers to admit this company’s practices are predatory and corrupt — it should not be given a single additional taxpayer dollar.”
Seth Frotman, executive director of the Student Borrower Protection Center, a consumer advocacy group, said Jones’ response to lawmakers this summer underscores how “the department is engaged in a calculated, unprecedented effort to obstruct law enforcement officials working to protect borrowers.”
September 9, 2019 | Student-loan behemoth tightens its ties to Trump and DeVos
“PHEAA spent a decade cheating students, borrowers and taxpayers and is now cozying up to the Trump administration to escape the consequences of its mismanagement and illegal practices,” Frotman told POLITICO. “This is corruption, plain and simple.”
Newly unsealed court documents reveal executives at the nation’s largest student loan company orchestrated a predatory scheme to place borrowers in high-cost repayment options to boost corporate profits. Reliance on these high-cost options, known as “forbearances,” resulted in more than $4 billion in unnecessary interest charges passed on to borrowers, according to lawsuits filed by federal and state enforcement officials.
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.
Testimony of Seth Frotman at the House Financial Services Committee hearing: A $1.5 Trillion Crisis: Protecting Student Borrowers and Holding Student Loan Servicers Accountable
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.