Education Secretary Betsy DeVos got taken to task by a U.S. Magistrate Judge for violating a court order imposed by the same judge in a 2018 ruling.
Judge Sallie Kim ordered DeVos and the Education Department to stop pursuing student loan payments from students of Corinthian Colleges because the for-profit colleges became defunct in 2015.
The Government's Top Student Loan Watchdog Just Resigned in Protest With a Scathing Letter to the Trump Administration
Seth Frotman, student loan ombudsman at the Consumer Financial Protection Bureau (CFPB) submitted a letter of resignation to his boss, Acting Director of the CFPB, Mick Mulvaney. It begins as most resignations would, but quickly veers into an indictment of the motives and mindset of the Trump administration.
"It is with great regret that I tender my resignation as the Consumer Financial Protection Bureau's Student Loan Ombudsman," Frotman begins. "It has been the honor of a lifetime to spend the past seven years working to protect American consumers; first under Holly Petraeus as the Bureau defended America's military families from predatory lenders, for-profit colleges, and other unscrupulous businesses, and most recently leading the Bureau's work on behalf of the 44 million Americans struggling with student loan debt."
The U.S. Consumer Financial Protection Bureau brought federal suit this month against Navient, the United States’ largest student loan servicer. The CFPB accused the company of “systematically and illegally failing borrowers at every stage of repayment.” The lawsuit seeks restitution for those affected, as well as money penalties.