CFPB Official Resigns Because of the White House's Treatment of Student Loan Office

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Posted: Aug 28, 2018 7:15 AM
CFPB Official Resigns Because of the White House's Treatment of Student Loan Office

Seth Frotman, the student loan ombudsman at the Consumer Financial Protection Bureau for the past three years, has resigned after criticizing the Trump administration for not doing more to protect the next generation. He addressed his goodbye letter to CFPB's acting director Mick Mulvaney.

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

Frotman's complaint is with the Department of Education's decision to forgo sharing information with the CFPB regarding its review of federal student loans and changing the rules for providing aid to students who said they were defrauded by their colleges. The changes required that some student loan refunds would be tied to income, for instance.

Sen. Dick Durbin (D-IL) chided the White House for "forcing" out another public servant.

The CFPB has faced a confusing bout of leadership the past year. President Trump appointed Mulvaney to take over as acting director, but Leandra English, the deputy director who was appointed by the last CFPB chief, dug in her heels. The two engaged in an entertaining battle royale, which ended in Mulvaney's victory.

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You may consider Frotman another face in the "Resist" movement in the federal government. Since Trump became president, several Washington employees have decided to either retire or move on to other projects. The loudest exit, perhaps, was Sally Yates at the Department of Justice, who said her goodbyes because she could not in good conscience enforce Trump's immigration ban. Then there were the hundreds of Obama-era employees at the EPA who quietly resigned after Trump appointed former EPA chief Scott Pruitt.