Getting Into Harvard May Mean Cheaper Loans Than Going to Howard
- Wells Fargo, Upstart change costs based on college, group says
- Former regulators say lenders practice ‘educational redlining’
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Borrowers expect their income or credit history to send their loan costs up or down. Few, however, expect lenders to judge them based on what college they went to.
But that’s exactly what some of the nation’s largest banks are doing, a group of former federal regulators said. Companies including Wells Fargo & Co. are charging consumers more to borrow money if they attended less prestigious colleges, a form of educational discrimination that may violate credit laws and deepen inequality, according to a new study.