Fact Checked

Student loan official resigns from CFPB

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Seth Frotman, a student loan official at the Consumer Financial Protection Bureau, has resigned.

That could potentially create an uncertain future for the Office of Students and Young Consumers, the office designed to protect student loan borrowers.

He will step down at the end of the week.

Why does this matter?

From 2011 to 2017, the CFPB handled nearly 60,000 student loan complaints and returned more than $750 million to harmed student loan borrowers.

In 2014, the bureau also brought lawsuits against controversial for-profit schools Corinthian Colleges and ITT Educational Services (ITT Tech). The bureau is currently leading the charge in an ongoing lawsuit against Navient, one of the nation’s largest student lenders.

It’s currently unclear who will replace Frotman at the Office of Students and Young Consumers, and what the change could mean for the bureau’s broader student loan work.

What can you do?

Students should do their research when it comes to borrowing money.

One place to start is doing your homework on any school you’re interested in attending. Check out the school’s graduation rates, how likely graduates are to find jobs in their chosen career paths, and what the average salary is for a graduate in an entry-level job in your field.

We also recommend that you talk with current students and former graduates to see what their experiences were like.

Once you find a reputable college, if you need student loans be careful about what lender you choose. It’s usually a good idea to apply for federal student loans and financial aid before considering private student loans. If you decide to take out private student loans, make sure you understand the interest rates, fees and repayment terms before signing on the dotted line.

About the author: Tim Devaney is a personal finance writer and credit card expert at Credit Karma. He’s a longtime journalist who prides himself on being a good storyteller who can explain complex information in an easily digestible wa… Read more.