If you’ve been contacted by the Student Borrower Protection Center, or been told to get in touch with them for assistance with your student debt, but you’re not sure whether or not this is a scam, then the good news is that this is a legitimate Nonprofit agency who you can actually trust.
The Student Borrower Protection Center was formed in November, 2018, by the former Student Loan Ombudsman at the Consumer Financial Protection Bureau, Seth Frotman, in coalition with others from the CFPB who he convinced to leave and start their own new agency.
Why Did Seth Frotman Create the Student Borrower Protection Center?
Mr. Frotman apparently left the CFPB because Federal officials (including Trump’s Education Secretary Betsy DeVos) had been stonewalling all of the DOE’s and CFPB’s efforts to actually help borrowers, siding instead on the behalf of schools and student loan servicing companies, and basically leaving ordinary Americans hung out to dry.
As a great example of the massive problems occurring at the Federal level, CNBC just reported that of the 34,000 applications submitted for the Public Service Loan Forgiveness Program, just 26 of them had been approved, again, as of November, 2018.
That’s an appallingly low number, and an obvious case of Federal officials working against the public’s best interest by ruining the single most effective, and most important Federal Student Loan Forgiveness Program available.
What Does the Student Borrower Protection Center Do?
The SBPC is a non-government agency, meaning it isn’t beholden to elected officials, and can basically operate however it wants, but it sounds like their agenda will be to advocate both privately and publicly for changing student loan laws to make Federal Student Loan Relief, and especially forgiveness benefits, more widely available to the public.
I think they’ll be operating almost like a Lobbying Firm, working with members of Congress, but also State and Local officials, to find ways to undo the student loan crisis, which even Betsy DeVos has finally admitted is “stealing from future generations”.
But the new SBPC may be in for a long and hard fight, because the Federal CFPB is still staffed with Trump appointees who seem to be willing to die on the sword of battling against student’s rights, as Mick Mulvaney, acting head of the CFPB, recentlys crapped planned to overhaul student loan collection laws, while Betsy DeVos’s Education Department is trying to prevent state oversight of federal loan servicers.
Basically, the foxes are in charge of the henhouse, and there are very few voices in positions of power now attempting to turn things around.
The situation is so stark that Mr. Frotman put it bluntly:
The Federal Government hasn’t just walked away from the fight on behalf of borrowers… It is actually arming the other side.
Can the Student Borrower Protection Center Help Me?
It sounds like the SBPC won’t necessarily be helping individual borrowers with any sort of planning, preparation or legal counseling services, but that it’s more focused on the big picture, working with Government agencies, but not Federal ones, to try and reform the broken Federal student loan repayment system.
In a quote, Mr. Frotman mentioned that the group’s goal will be to help policymakers and attorneys work on improving student loan borrower protections, specifically by working with government officials at the state level, as well as State attorneys general, to increase oversight of lenders and servicers.
And this is a task badly needed, as we’ve seen scandal after scandal in recent months, including the massive issues currently gripping some of the country’s biggest Student Loan Servicing Companies, like Navient, FedLoan and Great Lakes.
Once again, however, this could lead to major showdowns, as our Department of Education is clearly opposed to adding any sort of State-based oversight, which can be seen in their willingness to duke it out in court against Massachusetts and other states who have attempted to impose new rules on Federal Student Loan Collections Agencies.
I absolutely salute everything that Mr. Frotman and his colleagues are doing, and wish them the best of luck in their efforts, because student loan reform is long overdue, and it doesn’t appear that there’s any help on the horizon, at least as long as the Trump Administration remains in power.
Where Can I Get Help With My Loans?
I’m glad you asked! Forget Student Loan Debt was created to help people deal with their outstanding student loans, and my site offers all sorts of resources and guides on different parts of the student loan repayment process, with a primary focus on explaining forgiveness and relief benefits.
If your’e looking for Help with Federal Student Loans, be sure to look at my Guides on Federal Student Loan Forgiveness Benefits, The Borrower’s Defense To Repayment Program, the Closed School Loan Discharge Program, Federal Student Loan Bankruptcy Discharges, Federal Student Loan Consolidation Options, Federal Student Loan Delinquency & Default Help, the Federal Student Loan Rehabilitation Program, and Federal Student Loan Repayment Plans.
And if you need Help with Private Student Loans, you’ll want to view my Guides on Private Student Loan Forgiveness Benefits, Private Student Loan Consolidation Options, Private Student Loan Bankruptcy Discharges and Private Student Loan Default Assistance.
I used to recommend visiting the official Department of Education website, but honestly, you’re not going to get any valuable assistance from them as long as President Trump’s people remain in charge over there.
And finally, if you have any questions about student loans, or if you have thoughts on the opening of the new Student Borrower Protection Center, then please feel free to leave them in the Comments section below.
Thanks for stopping by!
Disclaimer:Information obtained from Forget Student Loan Debt is for educational purposes only. You should consult a licensed financial professional before making any financial decisions. This site receives some compensation through affiliate relationships. This site is not endorsed or affiliated with the U.S. Department of Education.