What criteria do student loan companies use when determining which students to give loans to and how much to give? Don’t know? Neither does New York Attorney General Andrew Cuomo, but we’re pretty sure he’s going to find out. From the NYT:
“What criteria are they using in the underwriting of these loans?” Mr. Cuomo asked. “Parental income? Student income? Student creditworthiness? How about the school you attend? How is that weighted?”
While lenders have the right to consider a borrower’s credit record, he said, “there are also civil rights and legal ramifications to what criteria they use, and that’s what we’re looking at.”
He suggested that students at historically black institutions were sometimes charged higher interest rates and fees than other students.
Go get ’em, Andy! —MEGHANN MARCO
Cuomo Plans to Broaden Student-Lending Inquiry [NYT]