There’s clearly no love between Elizabeth Warren and Pres. Trump as they differ in just about every issue. The president recently did something that Warren wasn’t too happy about: hiring Robert Cameron as the newest student loan ombudsman. In fact, the move angered her so much that she sent three letters to the Consumer Financial Protection Bureau. Treasury Secretary Steve Mnuchin, and the newest ombudsman himself as well.
Warren claims that Cameron is scandal-plagued, corrupt, and should never be the newest student loan watchdog. This position was created solely for the purpose of protecting students who take out student loans. There’s a lot of predatory behavior in the student loan game. Many Americans become suckered in by false ads and scammed by their lender.
It’s the job of the ombudsman to gather together all the complaints and help settle any disputes that have occurred. But according to Warren, Trump chose the wrong person for the job. She says he himself has a history of corruption within the industry. It’s also Cameron’s job to advise Congress, the Treasury Secretary, and even the CFPB on improving the student loan process.
The Burden of Student Loan Debt is Crushing
Currently in the United States, 44 million Americans owe $1.6 trillion in student loan debt. This is a major burden and a crisis that is hurting our economy and crushing our young adults. They are just starting out in life. The last thing they need to do is to graduate tens of thousands of dollars in debt.
Studies have come out revealing that many young Americans are putting off major life decisions on hold. Things like getting marriage, buying healthcare, starting a business, saving for retirement, and even having children. Many are choosing to move back in with their parents. They simply cannot afford to pay their student loans and live on their own.
Chairman of the Federal Reserve, Jerome Powell, testified in a hearing that the student loan crisis could cause long-term ramifications. They could even drag on the US economy in the future. Student loan debt has become a major talking point among 2020 presidential candidates. Warren is one of the candidates who wants to eliminate almost all of the student loan debt out there.
In Warren’s mind, appointing Cameron to the position is “mind-boggling.”
“A former PHEAA executive’s appointment to the role represents the worst form of revolving-door corruption and conflict of interest, and it epitomizes industry capture of our government. Given Mr. Cameron’s responsibility for PHEAA’s compliance with federal law, regulations, and programs, and PHEAA’s record of compliance failures, it is clear that student-loan borrowers cannot count on Mr. Cameron to uphold their interests,” she writes.
Warren then called on Secretary Mnuchin to deny Cameron’s appointment. Whether he will listen is probably doubtful.
