The Consumer Financial Protection Bureau, once one of the most aggressive regulators of education loan companies, is signaling a retreat from oversight of federal student loans by limiting the duties of its new ombudsman.
On Friday, the bureau announced the appointment of Robert G. Cameron as its ombudsman for private education loans, charged with receiving, reviewing and resolving borrower complaints. But those responsibilities previously extended to federal student loans as well.
The new emphasis on the private market is a turn for the bureau, which has jurisdiction over loans made not only by banks and financial firms but also by the federal government. The move limits the scope of the bureau’s work at a time when the federal government originates more than 90 percent of student loans, and as borrowers have lost faith in the Education Department’s ability to rectify problems in the sector.