Congress cut federal graduate borrowing last year with the One Big Beautiful Bill Act (OBBBA). Now, private lenders are rushing in to fill the gap. And some of them may already be discriminating against borrowers.
Protect Borrowers joined NAACP Legal Defense and Education Fund, Inc. to send a letter warning that fintech lender College Ave’s new graduate loan product (which is targeted specifically at STEM students) “may result in unlawful discrimination against students, in violation of fair lending and civil rights laws.”
The problem is structural: STEM programs disproportionately enroll male and white students. College Ave’s loan product, designed for STEM graduates, may have a disparate impact on women and Black and Latino/a students.
We’re calling it educational redlining.
This is what happens when Congress strips guardrails and lets private lenders write their own rules. Students, especially students of color and women, pay the price. We sent our letter to American Fintech Council CEO Phil Goldfeder.
Read the Letter: LDF, Protect Borrowers Letter on College Ave to American Fintech Council
Read the Politico Coverage: Morning Money – May 7, 2026