August 27, 2018

Brown Statement On Resignation of CFPB Student Loan Watchdog

WASHINGTON, D.C. — U.S. Sen. Sherrod Brown (D-OH) – ranking member of the U.S. Senate Committee on Banking, Housing, and Urban Affairs – released the following statement on the resignation of the Consumer Financial Protection Bureau’s (CFPB) Student Loan Ombudsman and Assistant Director for the Office for Students and Young Consumers, Mr. Seth Frotman. Mr. Frotman and his office were in charge of protecting student borrowers from predatory lending practices and financial schemes in the $1.5 trillion student loan market.

“Shady lenders and predatory for-profit schools gained an ally at the CFPB, while students have lost their chief watchdog,” said Brown. “The CFPB needs an independent Director who will fight for servicemembers and students.”

Ranking Member Brown introduced legislation creating the Student Loan Ombudsman and fought for its inclusion as part of the CFPB during consideration of the Dodd-Frank Wall Street Reform and Consumer Protection Act. Since the CFPB opened its doors in 2011, the Office for Students has secured more than $750 million in relief for student loan borrowers including servicemembers, veterans, and older Americans with student loan debt.