You may not know who Seth Frotman is, but he was a beacon of hope for many who struggled with their student loan debt. He was put in charge of a department in the Consumer Financial Protection Bureau designed to protect students against unfair and deceptive practices.
Frotman’s primary job was to assist borrowers of student loans by resolving complaints against private lenders. He prevents students from getting scammed. Of the thousands of claims of wrongdoing by lenders, he read them all and responded accordingly.
Frotman should be considered a hero for consumers everywhere. He oversaw the return of over $750 million to students. On September 1st, Frotman is officially retired from his role as ombudsman. The reason why he left should upset and terrify everyone who has a student loan.
Why Did the Student Loan Watchdog Quit?
You may be wondering why such a hero would quit. If he was genuinely helping students recover money after improper student loan practices, he should continue his work. However, as he put it, the government under the Trump administration no longer cared. In his resignation letter, Frotman blasted the current regime for handcuffing his ability to solve problems.
“It has become clear that consumers no longer have a strong, independent Consumer Bureau on their side. Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting. Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America,” the letter read.
Sadly, the CFPB’s former protector no longer believes the bureau is empowering students and their families to make informed financial decisions. The government is instead backing the financial industries and letting them get away with murder. This problem is hurting students and their ability to overcome massive amounts of student loan debt.
What to Do Next
Thankfully, there are still options available to help protect those with student loan debt. For one, Financial Helpers is available to help you navigate the troubling waters. If you want to know what your options are, or whether you qualify for loan forgiveness, give us a call. You can reach us at the number below.
The best thing you can do is remain vigilant and understand your options. There are currently over 44 million borrowers in the U.S. Over 10% have defaulted on their loans. With each passing year, the amount of average debt each student carries grows. The situation is only getting worse.
As student loan debt crosses the $1.5 trillion-mark, federal protection is more critical than ever. One wrong move in handling your loans can hurt your credit score. Whatever you do, don’t take a passive approach to your student loans. Defaulting your loan is the worst thing you can do. Now with fewer protections, they can come after you harder than ever. They can garnish your wages and take your tax return. Don’t let the sharks ruin your life. Call Financial Helpers today.