CFPB Critics Seek Issuance Of 2018 Student Loan Ombudsman Annual Report
The CFPB is facing criticism for not yet having issued the 2018 annual report of its Student Loan Ombudsman. The 2017 annual report was issued in October 2017 and, like previous reports, included student loan complaint data and a discussion of such data.
The Dodd-Frank Act requires the Ombudsman to prepare an annual report “that describes the activities, and evaluates the effectiveness of the Ombudsman during the preceding year.” Those criticizing the CFPB for not yet issuing a 2018 report emphasize the non-release of complaint data. It should be noted however that while Dodd-Frank requires the Ombudsman to “compile and analyze data on borrower complaints regarding private education loans,” it does not impose a similar requirement for federal student loans nor does it require the Ombudsman to include complaint data in the annual report.
It is possible that the CFPB has not yet released the 2018 report because the position of Student Loan Ombudsman has remained unfilled since the August 2018 resignation of Seth Frotman, the former Ombudsman. Mr. Frotman is now the Executive Director of the Student Borrower Protection Center. Earlier this week, the Center issued a report containing an analysis of student loan complaints submitted to the CFPB on or after September 1, 2017.