https://www.npr.org/2018/08/27/642199524/student-loan-watchdog-quits-blames-trump-administration?utm_source=twitter.com&utm_medium=social&utm_campaign=npr&utm_term=nprnews&utm_content=20180827
The federal official in charge of protecting student borrowers from predatory lending practices has stepped down.
In a scathing resignation letter, Seth Frotman, who until now was the student loan ombudsman at the Consumer Financial Protection Bureau, says current leadership "has turned its back on young people and their financial futures." The letter was addressed to Mick Mulvaney, the bureau's acting director.
In the letter, obtained by NPR, Frotman accuses Mulvaney and the Trump administration of undermining the CFPB and its ability to protect student borrowers.
"Unfortunately, under your leadership, the Bureau has abandoned the very consumers it is tasked by Congress with protecting," it read. "Instead, you have used the Bureau to serve the wishes of the most powerful financial companies in America."
The letter raises serious questions about the federal government's willingness to oversee the $1.5 trillion student loan industry and to protect student borrowers.
The CFPB was specifically created to combat the predatory lending practices that led to the Great Recession. Trump has gutted its protections. We're seeing a resurgance of exploitative and predatory lending in all fields, such as student loans, car loans, mortgage loans, etc.
These destructive, exploitative.lendimg practices will have catastrophic consequences for the country (to say nothing of the ruined lives of countless borrowers) down.the road, but in the short term Trump and the GOP get to cite the massive profits of these companies as proof that they are good for the economy.
I think preying on people transitioning towards better paying work is probably the most hilariously evil fucking thing a politician can do
You can bitch about "TAXES WHAAAAAAAA TAAAAXXESSSS MY MY MY MY MONEY WHAAAAAAAA" all you want, but getting people educated and into medical, trade, etc fields is the most important thing we have
They're literally borrowing from our country's future to line their fat pockets. They don't give a fuck about anything but living like kings until they're dead.
Calling student loans an industry is a bad sign in itself I'd say. Student loans should be an investment.
So how about that swamp...
On the one hand, I can understand his leaving. What a terrible mess to be involved in. On the other hand, one less good person in government.
He's betrayed everyone else except Putin, not surprising there's one more on the pile.
I'm excited to see what kind of monolithic loan shark ends up in the chair who also happens to prove he values others' monetary interests over his own by donating a great deal of his hard earned money (to trump)
Honestly we need a nationwide debt strike on college loans. That would get them to listen up extremely quickly.
Sorry, you need to Log In to post a reply to this thread.
