August 26, 2019

Rolling Stone: Elizabeth Warren: Trump’s Student-Loan Watchdog Pick Is ‘Revolving Door Corruption’

Sen. Elizabeth Warren (D-MA) blasted the chief of the Consumer Financial Protection Bureau for appointing a high-ranking official from a scandal-plagued loan servicer to be the Bureau’s new student-loan watchdog.

On Monday, Warren’s office released three fiery letters the senator had sent to Trump-nominated CFPB Director Kathy Kraninger, Treasury Secretary Steven Mnuchin, and Robert Cameron, the man picked to serve as the CFPB’s new student-loan ombudsman. The ombudsman position was created to give student borrowers an outlet for filing complaints about their private lenders and getting help to resolve their disputes. The ombudsman is also charged with compiling and analyzing data about the student-loan market and offering advice to the CFPB, Treasury secretary, and Congress about how to improve that market.

An uproar ensued when Kraninger announced on August 16 that she had filled the Bureau’s vacant student-loan ombudsman position with Cameron, whose previous job included overseeing “compliance activities” at a student-loan organization that has faced thousands of complaints and multiple lawsuits called the Pennsylvania Higher Education Assistance Agency (PHEAA). Seth Frotman, the previous ombudsman who was appointed under President Obama, called Cameron’s appointment “an insult to the nation’s 45 million borrowers who deserve an advocate in their corner.”  

Read the full article on the Rolling Stone website here

By:  Andy Kroll
Source: Rolling Stone