Nation’s Top Official Overseeing Student Loans Resigns, Drags Trump Administration
By: Kayla Pasacreta
eth Frotman, the federal official responsible for protecting student borrowers, announced his resignation on Monday. Frotman directly cited the Trump Administration for his departure, expressing his own concerns that the Trump White House does not have the best interest of student loan borrowers at heart.
Frotman’s role as Student Loan Ombusdman for the Consumer Financial Protections Bureau (CFPB)started in 2010 after the financial crisis, and resulted in returning over $750 million to harmed student loan borrowers.
Frotman’s departure is the department’s second high-level resignation since the hiring of Trump’s budget director Mick Mulvaney, who took charge of CPFB in November and leased the bureau in revising or removing many Obama-era regulations, lessening enforcement to prevent predatory lending, and ultimately downgrading Frotman’s role to protect student borrowers. Frotman cited Mulvaney in his letter, “The damage you have done to the Bureau betrays these families and sacrifices the financial futures of millions of Americans in communities across the country,"