Our Statement on Resignation of Student Loan Watchdog

The resignation of Seth Frotman as Student Loan Ombudsman from the Consumer Financial Protection Bureau (CFPB) should be a wake up call for all. In a powerful letter, Frotman accuses the bureau and Trump/DeVos administration for turning their “back on young people and their financial futures [to] serve the wishes of the most powerful financial companies in America.” Student loans were meant to assist students in their quest for the American Dream, but instead they are enriching predatory schools, banks, debt servicers, and collectors. This is unacceptable. Bob Hildreth, founder and president of Hildreth Institute released the following statement:

“We applaud Seth Frotman for sounding the alarm on the Bureau’s abandonment of struggling student loan borrowers. The current leadership of the bureau is actively failing to protect borrowers, while satisfying President Trump and the DeVos administration’s misguided desire to shield bad actors from scrutiny. Seth Fortman had the courage to resign from a duty that has now become a sham and had the decency to speak up and stand up for what is right. We demand the reinstatement of a strong and independent student loan watchdog. Without it, American families will continue to be saddled with loans they cannot repay, while being harassed by bad actors that will drive them to financial ruin.”