Former govt. student loan official opens new organization
NEW YORK (AP) — A former top government official who oversaw the $1.5 trillion student loan market is starting a new organization that he hopes will do a better job protecting student borrowers than his current government counterparts.
Seth Frotman was student loan ombudsman at the Consumer Financial Protection Bureau, until he resigned in protest in August. At the time of his resignation, he cited what he called a hostility from the White House toward protecting the nation’s student loan borrowers.
After taking a few months off, Frotman is announcing the creation of a new organization: the Student Borrower Protection Center. The SBPC will focus on nationwide student loan issues and coordinate private scrutiny of the Department of Education’s handling of the student loan market.