This report is the result of an investigation that reveals potentially harmful business practices and possible fair lending risks by Stride Funding, an education finance firm that originates and markets Income Share Agreements (ISAs). Extensive mystery shopping revealed that Stride’s lending model may violate federal fair lending law by penalizing borrowers of color for attending minority-serving institutions (MSIs) such as Historically Black Colleges and Universities (HBCUs).
Stride Funding’s own data reveal that the company’s ISA products are priced in ways that could generate huge cost disparities for students of color attending MSIs, sometimes even when an MSI is a higher-ranked school than a given non-MSI.
{"title":"Inequitable Student Aid: A Case Study of Disparate Lending Practices and Educational Redlining Tactics in the Market for Income Share Agreements","authors":"Ben Kaufman, Katherine Welbeck","doi":"10.2139/ssrn.3813011","DOIUrl":"https://doi.org/10.2139/ssrn.3813011","url":null,"abstract":"This report is the result of an investigation that reveals potentially harmful business practices and possible fair lending risks by Stride Funding, an education finance firm that originates and markets Income Share Agreements (ISAs). Extensive mystery shopping revealed that Stride’s lending model may violate federal fair lending law by penalizing borrowers of color for attending minority-serving institutions (MSIs) such as Historically Black Colleges and Universities (HBCUs). <br><br>Stride Funding’s own data reveal that the company’s ISA products are priced in ways that could generate huge cost disparities for students of color attending MSIs, sometimes even when an MSI is a higher-ranked school than a given non-MSI.","PeriodicalId":325749,"journal":{"name":"Student Borrower Protection Center Research Paper Series","volume":"8 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-25","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"129749923","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
This foreword introduces a compendium of articles outlining the legal authorities for administrative cancellation of student debt. As of the date this compendium was published, the nation’s outstanding cumulative student debt burden stands at $1.7 trillion, collectively shouldered by 45 million Americans. This burden continues to rise unchecked—in only four short years, outstanding student debt is estimated to reach nearly $2 trillion.
Yet, armed with the benefit of hindsight and buoyed by the possibilities afforded by a new administration, we recognize that we can and must act. President Biden will take office with the tools needed to take immediate action to eliminate this burden for tens of millions of people who have been needlessly forced to bear its brunt.
Without a single new act of Congress, the President has the power to execute these laws as they were intended and to pry open the safety valves designed to protect borrowers. Each of the key levers for debt relief under current law is available to provide overdue, immediate relief to millions of people with student debt.
{"title":"Foreword | Delivering on Debt Relief","authors":"Seth Frotman, Dalié Jiménez, Jonathan D. Glater","doi":"10.2139/ssrn.3757029","DOIUrl":"https://doi.org/10.2139/ssrn.3757029","url":null,"abstract":"This foreword introduces a compendium of articles outlining the legal authorities for administrative cancellation of student debt. As of the date this compendium was published, the nation’s outstanding cumulative student debt burden stands at $1.7 trillion, collectively shouldered by 45 million Americans. This burden continues to rise unchecked—in only four short years, outstanding student debt is estimated to reach nearly $2 trillion.<br><br>Yet, armed with the benefit of hindsight and buoyed by the possibilities afforded by a new administration, we recognize that we can and must act. President Biden will take office with the tools needed to take immediate action to eliminate this burden for tens of millions of people who have been needlessly forced to bear its brunt.<br><br>Without a single new act of Congress, the President has the power to execute these laws as they were intended and to pry open the safety valves designed to protect borrowers. Each of the key levers for debt relief under current law is available to provide overdue, immediate relief to millions of people with student debt.","PeriodicalId":325749,"journal":{"name":"Student Borrower Protection Center Research Paper Series","volume":"56 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2020-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"116576089","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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