Senators Probe Online Lenders Use of Education Data in Lending

Sens. Sherrod Brown, D-Ohio, Elizabeth Warren, D-Mass., and three other Democratic senators sent a letter to Upstart Network and other lenders asking about their use of education data in lending; the request comes after a report from the Student Borrower Protection Center that said students who attended Howard University, a historically black college, would be charge $3,499 more than a student from Yale over the course of a five year loan; American Banker quotes from the letter, “while we encourage lenders to innovate to improve access to credit — particularly for marginalized borrowers who have been shut out of the credit system — all lenders must ensure that their underwriting practices comply with fair lending laws.”; Upstart responded to the report saying they rigorously test across millions of applications to ensure they follow the law. American Banker

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