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Business Insider: A student-loan company just got hit with a $1 million penalty for ‘breaking the law’ by lying to borrowers about loan forgiveness, Biden’s top consumer watchdog says

Business Insider, March 30, 2022, A student-loan company just got hit with a $1 million penalty for ‘breaking the law’ by lying to borrowers about loan forgiveness, Biden’s top consumer watchdog says

On Wednesday, the Consumer Financial Protection Bureau (CFPB) sanctioned Edfinancial Services for “making deceptive statements to student loan borrowers and misrepresenting their forgiveness and repayment options to them,” according to the press release.

Specifically, the bureau said Edfinancial did not provide accurate information to borrowers of the privately held Federal Family Education Loan (FFEL) program about their eligibility for the Public Service Loan Forgiveness (PSLF) program — a program that forgives student debt for public servants after ten years, and recently expanded its eligibility to include FFEL borrowers through a temporary waiver.

 

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Redlining and Neighborhood Health

Before the pandemic devastated minority communities, banks and government officials starved them of capital.

Lower-income and minority neighborhoods that were intentionally cut off from lending and investment decades ago today suffer not only from reduced wealth and greater poverty, but from lower life expectancy and higher prevalence of chronic diseases that are risk factors for poor outcomes from COVID-19, a new study shows.

The new study, from the National Community Reinvestment Coalition (NCRC) with researchers from the University of Wisconsin–Milwaukee Joseph J. Zilber School of Public Health and the University of Richmond’s Digital Scholarship Lab, compared 1930’s maps of government-sanctioned lending discrimination zones with current census and public health data.

Table of Content

  • Executive Summary
  • Introduction
  • Redlining, the HOLC Maps and Segregation
  • Segregation, Public Health and COVID-19
  • Methods
  • Results
  • Discussion
  • Conclusion and Policy Recommendations
  • Citations
  • Appendix

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