Ameritech Financial: Student Loan Ombudsman Resigns From Consumer Financial Protection Bureau

CFPB Student Loan Ombudsman Resigns

Though national political shifts impact borrowers, for many, the challenge is much more personal. For those who have struggled with student loan debt, the standard student loan repayment plan isn't flexible enough to help a borrower deal with realities of life after higher education. Many borrowers end up accepting low-paying or entry-level jobs and then have trouble managing household expenses and student loan repayment. These borrowers need advocates. One of them, Seth Frotman, the government’s highest official responsible for oversight of the nation’s student loan debt, has left his post at the Consumer Financial Protection Bureau (CFPB). Despite governmental shake-ups, Ameritech Financial, a document preparation company, continues to advocate for its clients by guiding them through the sometimes difficult process of applying for and maintaining enrollment in federal programs, such as income-driven repayment plans (IDRs).

"Student loan borrowers need trusted advocates," said Tom Knickerbocker, executive vice president at Ameritech Financial. "Borrowers need to know their options and we provide that expertise. As our clients know, getting an IDR after being overwhelmed with student loan debt can offer hope and light for those who have struggled."

Frotman, the student loan ombudsman, resigned after Mick Mulvaney, acting director of the CFPB, downgraded his office from an enforcement unit to consumer education.

No matter which way the political wind is blowing, we can act as a trusted guide, helping borrowers through the IDR process, in an effort to give them some breathing room so they don't have to scramble every month.

Tom Knickerbocker

Executive Vice President of Ameritech Financial

In his letter of resignation, Frotman said that, after 10 months under Mulvaney’s leadership, “it has become clear that consumers no longer have a strong, independent Consumer Bureau on their side.” Frotman cited his staff’s return of more than $750 million to harmed student loan borrowers since 2011, but stated the CFPB was now serving “the wishes of the most powerful financial companies in America.”

Representatives of the CFPB say the move was a minor organizational shake-up, not a threat to the CFPB’s mission in regard to student loans. For their part, the CFPB’s reductions in enforcement and revision of rules are part of a larger White House mandate to reduce regulations and increase free market forces. Though they would not directly comment on the specifics of Frotman’s resignation, they issued a statement saying, “we hope that all of our departing employees find fulfillment in other pursuits and we thank them for their service." 

Though these larger forces and political struggles affect student loan borrowers, for most, student loan debt is a more personal struggle. For those overwhelmed by student loan debt, IDRs might help reduce a qualifying borrower's payments to 10 to 15 percent of their discretionary monthly income, possibly even ending in forgiveness after 20 to 25 years of enrollment in the program.

"No matter which way the political wind is blowing, we can act as a trusted guide, helping borrowers through the IDR process, in an effort to give them some breathing room so they don't have to scramble every month," said Knickerbocker. "With IDRs, borrowers can more easily stay current on their payments and begin to regain financial control of their lives."

About Ameritech Financial

Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.

Each Ameritech Financial telephone representative has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).

Ameritech Financial prides itself on its exceptional customer service.

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Contact

To learn more about Ameritech Financial, please contact:

Ameritech Financial
5789 State Farm Drive #265
​Rohnert Park, CA 94928
1-800-792-8621
​media@ameritechfinancial.com

Source: Ameritech Financial


Categories: Financing and Student Loans, Financial News

Tags: federal student loans, income-driven repayment, student loan advocate


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About Ameritech Financial

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Ameritech Financial is a document preparation company that helps borrowers enroll in the federal repayment program that matches their individual financial needs, potentially lowers payments and gets them on track for student loan forgiveness.