Student Loan Programs Fail Those Who Need Them Most, Consumer Watchdog Charges
A new government report suggests policymakers scrap parts of the present system and start fresh.
This article is for subscribers only.
A federal program meant to help the most distressed Americans struggling with their student loans all too often fails them, a top official at the Consumer Financial Protection Bureau said on Monday.
Efforts by the Obama administration to improve the treatment of Americans in default on their student debt have been inadequate, according to a report by Seth Frotman, the CFPB’s student loan ombudsman. He suggested that policymakers scrap parts of the current system, in which federal contractors make immense profits for debt collection practices that neither return enough money to taxpayers nor provide enough help to troubled borrowers, and start anew.