A consumer group, led by people who quit the Trump administration, is forming in hopes of serving as a check on the student loan industry, the Washington Post reported. The nonprofit Student Borrower Protection Center aims to expand borrower protections and oversight of the $1.5 trillion student loan market. Its executive director is Seth Frotman, who resigned in August from a senior position at the federal Consumer Financial Protection Bureau. When he stepped down, Frotman asserted that the Trump administration was siding with predatory lenders over consumers and enacting policies that will lead to “far-reaching harm.” Two others from his office also quit in protest and are joining Frotman at the new venture, along with three fellows. The new center plans to encourage states and cities to step up enforcement actions against loan-servicing companies, debt collectors, for-profit schools and private student lenders. Read more.
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