Title
Educational Redlining
Document Type
Issue/Research Brief/Blog
Publication Date
2-2020
Keywords
economic barriers, financial education, loan repayment
Abstract
This report, analyzing fintech and banking products, uncovers cases where a prospective borrower may be hit with thousands of dollars in additional costs if he or she attended a community college, an Historically Black College or University (HBCU), or an Hispanic-Serving Institution (HSI).
The report warns that financial companies’ use of individuals’ education history to screen borrowers for loans can penalize borrowers of color and community college students, and calls on Congress, federal and state regulators, and industry to examine these troubling practices and take action to halt discrimination.
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