Seth Frotman will be stepping down as student loan ombudsman at the end of the week, according to his resignation letter. He held that position since 2016, but has been with the Consumer Financial Protection Bureau.
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The office was at the center of the lawsuits against for-profit institutions like Corinthian Colleges and is currently heading up a lawsuit between the CFPB and Navient, one of the nation’s largest student lenders. The Navient lawsuit has been mired in bureaucratic red tape as the Department of Education, headed by Betsy DeVos, has been unwilling to help the CFPB with their lawsuit. Since its creation, the student loan office has returned $750m to harmed borrowers.