CFPB's student loan watchdog on the chopping block

The Consumer Financial Protection Bureau (CFPB) faced significant upheaval as officials planned to terminate the position of student loan ombudsman, Julia Barnard. However, a federal court intervened, temporarily halting these actions linked to broader efforts by the Trump administration to reduce the agency's influence. The National Treasury Employees Union filed a lawsuit, indicating that employees were unfairly restricted. Advocacy groups expressed alarm over the potential implications for millions of student loan borrowers who rely on the ombudsman for support, emphasizing the critical nature of the role.

'Firing the ombudsman without a replacement is possibly illegal, but outside of that, it's 100 percent reckless,' said Kristin McGuire, executive director of Young Invincibles.

'Millions of student borrowers are going to be left without this key advocate in their corner,' said Mike Pierce, executive director of the Student Borrower Protection Center.

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