Women of color found to face worse student debt, job losses

Source
The Chicago Tribune
Women of color have less job security than before the COVID-19 pandemic and are struggling to repay their student loans, according to a new report released by the Center for Responsible Lending (CRL). The U.S. economy added 6.7 million jobs in 2021, but the gains made in the workforce have not been shared equally across genders, the report says.

Credit scores and the bias behind them

David Silberman, a senior fellow at the Center for Responsible Lending, said this is part of a bigger problem. “Credit scores very much are reflecting of the history of discrimination in the country,” he said. Silberman, who spent a decade at the Consumer Financial Protection Bureau and years in the financial services industry, has thought about how algorithms can reflect privilege, or the lack thereof.

Will Student Loan Forgiveness Be $10,000 Or $50,000 — Or Zero?

Source
Adam S. Minsky | Forbes
“Cancelling $50,000 in student loan debt is the minimum needed to begin addressing the racial wealth gap,” said Jaylon Herbin, policy and outreach manager and student loan lead at the Center for Responsible Lending (CRL). “Student debt most negatively impacts those historically marginalized through systemic inequalities that have only continued to grow. President Biden can and should use the authority of executive action to uphold the administration’s commitment to helping communities of color and women, who deserve the ability to build their American dream.”

Pressure Mounts for Biden-Harris Administration to Erase Student Loan Debt

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Tanya Christian | Ebony
“The Biden-Harris administration announced almost exactly one year ago that it was taking steps to ‘narrow the racial wealth gap and reinvest in communities that have been left behind by failed policies.’ Canceling $50,000 in student loan debt is the minimum needed to begin addressing the racial wealth gap,” said Jaylon Herbin, policy and outreach manager and student loan lead at the Center for Responsible Lending (CRL). “Student debt most negatively impacts those historically marginalized through systemic inequalities that have only continued to grow. President Biden can and should use the

Why Adjustable-Rate Mortgages Are Still Risky

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Ann Carrns | The New York Times
ARMs haven’t been much in demand in recent years because rates on predictable, fixed-rate mortgages remained low. They also earned a bad reputation in the financial crisis, when underqualified borrowers lured in by the initially low interest rates were unable to keep up payments when they rose. Laws passed after the financial crisis made ARMs “much safer and more transparent than they used to be,” said Eric Stein, senior vice president at the Center for Responsible Lending.

Biden administration cancels $5.8B in student loan debt

Source
Kelsey Ramirez | Fox Business
"We applaud President Biden and Vice President Harris for this move," Whitney Barkley, the Center for Responsible Lending's senior policy counsel, said. "Tens of thousands of former Corinthian students who had been defrauded by their school, and left wondering for years how they’d recover the money they lost, are now at ease. The administration now needs to immediately cancel $50,000 of student loan debt per borrower and abandon its piecemeal approach to cancellation. "While historic, the relief provided to Corinthian students represents only a tiny fraction of students who need cancellation,"

Louisiana governor vetoes bill to allow high-cost installment loans

Source
Polo Rocha | American Banker
Louisiana Gov. John Bel Edwards has vetoed a bill that would have allowed consumer lenders to offer short-term installment loans with triple-digit interest rates. The bill sought to establish a new type of consumer loan of up to $1,500 and with a term of between 90 days and one year. Edwards, a Democrat, objected to the prices that the measure would have allowed lenders to charge.