#NNPA BlackPress

Brown, Senate Democrats Press Upstart, Lenders for Answers Following Reports of Higher Interest Rates for Students of Minority-Serving Institutions

NNPA NEWSWIRE — The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction. Under the statute, lenders can be liable if they treat applicants differently based on a prohibited basis, such as race or national origin. In addition, lenders can also be liable if their practices have a disproportionate impact on a protected class.

Published

6 years ago

February 28, 2020

Oakland Post

U.S. Senator Sherrod Brown (D-Ohio) (Photo: Marc Nozell from Merrimack, New Hampshire, USA /Wikimedia Commons)

WASHINGTON — Senator Sherrod Brown (D-OH), Ranking Member of the Senate Committee on Banking, Housing and Urban Affairs, and Senators Elizabeth Warren (D-MA), Bob Menendez (D-NJ), Cory Booker (D-NJ) and Kamala Harris (D-CA) pressed Upstart and other lenders and service providers for answers following a report from the nonprofit Student Borrower Protection Center that lenders may be charging higher interest rates to students who graduated from Historically Black Colleges and Universities and Hispanic-Serving Institutions.

“The report found that a graduate of Howard University, an HBCU, would be charged $3,499 more over the life of five-year loan than a similarly situated graduate of New York University. Based on the racial demographics at these schools, these findings raise serious concerns that Upstart’s use of educational data may have a disparate impact on borrowers of color,” the Senators wrote.

The Senators’ letter points to past concerns from regulators about the use of educational data to make credit decisions and calls on lenders to ensure that their underwriting practices comply with fair lending laws. The Senators pressed Upstart and lenders for answers to their questions by Feb. 27.

See the full text of the letter to Upstart below and the letters to lenders HERE and service providers HERE.

Dear Mr. Girouard:

We write to express concern about a recent report that found lenders’ use of educational data to make credit determinations could have a disparate impact on borrowers of color. While we encourage lenders to innovate to improve access to credit—particularly for marginalized borrowers who have been shut out of the credit system—all lenders must ensure that their underwriting practices comply with fair lending laws.

The Equal Credit Opportunity Act (ECOA) prohibits discrimination in any aspect of a credit transaction.^[1] Under the statute, lenders can be liable if they treat applicants differently based on a prohibited basis, such as race or national origin.^[2] In addition, lenders can also be liable if their practices have a disproportionate impact on a protected class.^[3^]

For years, regulators have raised concerns that lenders’ use of educational data to make credit decisions could result in discrimination against minority borrowers.^[4] In 2007, then New York Attorney General Andrew Cuomo criticized private student lenders’ consideration of a student’s school in determining creditworthiness and described the practice as “educational redlining.”^[5] In a 2012 report, the Consumer Financial Protection Bureau (Bureau) investigated private student lenders’ use of a “cohort default rate” (CDR)—which measures the rate at which students at a given institution default on their student loans—when determining creditworthiness.^[6] The Bureau found that the “[u]se of CDR to determine loan eligibility, underwriting, and pricing may have a disparate impact on minority students by reducing their access to credit and requiring those minority students . . . to pay higher rates than are otherwise available to similarly creditworthy non-Hispanic White students at schools with lower CDRs.”^[7] And in 2014, the FDIC brought an enforcement action against Sallie Mae Bank and Navient Solutions Inc., which found that use of CDR in their credit-scoring model for the pricing of private student loans violated ECOA.^[8]

On February 5, 2020, the Student Borrower Protection Center issued a report finding that Upstart Network Inc.’s (Upstart) use of educational data resulted in borrowers who had graduated from Historically Black Colleges and Universities (HBCUs) and Hispanic-Serving Institutions (HSIs) paying more in interest and fees than similarly situated borrowers who graduated from non-minority serving institutions.^[9] For example, the report found that a graduate of Howard University, an HBCU, would be charged $3,499 more over the life of five-year loan than a similarly situated graduate of New York University. Based on the racial demographics at these schools,^[10] these findings raise serious concerns that Upstart’s use of educational data may have a disparate impact on borrowers of color.

Upstart has stated that it does not consider the specific school that a student attended when determining creditworthiness.^[11] But the company has acknowledged that its underwriting model considers “groups of schools that have similar economic outcomes and educational characteristics.”^[12] In other words, Upstart appears to be assessing creditworthiness based on non-individualized factors, which the CFPB, FDIC, and New York Attorney General have found raise fair lending concerns.

So that we can better understand how Upstart has used educational data to make credit determinations, as well as how your company tests for and demonstrates compliance with fair lending laws, we request that Upstart provide responses to the following questions by February 28, 2020:

Describe how Upstart tests whether its credit determinations have a disparate impact on borrowers of a protected class under ECOA, and the results of any such testing.
Provide the following information about the use of “educational characteristics” used to determine the “groups of schools”^[13]in Upstart’s model, including:
1. Each “educational characteristic[]” considered by Upstart;
2. An explanation of how Upstart selected each characteristic;
3. An explanation of how and the extent to which the educational characteristics factor into credit determinations.
Provide the following information about the use of “economic outcomes” to determine the “groups of schools” used in Upstart’s model^[14]:
1. Each “economic outcome[]” considered by Upstart;
2. An explanation of how Upstart selected each outcome;
3. An explanation of how and the extent to which they factor into credit determinations
Provide any other relevant detail regarding how these “groups of schools” were formulated, including what metrics and cutoffs are used to determine the groups.
Provide detail on the number and characteristics of the “groups” constructed for your underwriting model, including:
1. The number of groups;
2. A list of the names or identifiers used to signify each individual group;
3. The total number of schools across all groups;
4. The number of schools in each individual group;
5. The total # of MSIs, including:
  1. The number of HBCUs;
  2. The number of HSIs;

The number of AANAPISI-serving institutions;

The number of women’s colleges; and
The proportion of existing MSIs and women’s colleges in the U.S. that are in each bucket.

Provide an explanation, supported by analysis, describing how grouping impacts credit determinations, including:
1. How each “group” is tiered with regard to credit determinations; and
2. How distributions of approval rates, financing fees, and interest rates charged to borrowers differ across “groups.”
Provide an explanation, supported by analysis, describing the impact that school grouping has on credit determinations for similarly situated borrowers across demographic groups.
Identify the sources of any data concerning the relationship between educational characteristics and economic outcomes used by your model.

Thank you for your attention to this important matter. Please contact Jan Singelmann, Counsel for the Senate Committee on Banking, Housing, and Urban Affairs, at Jan_Singelmann@banking.senate.gov with any questions or concerns.

Sincerely,

^[1] See 15 U.S.C. § 1691(a)(1) (prohibiting discrimination on the basis of race, color, religion, national origin, sex or marital status, age, because all or part of an applicant’s income derives from public assistance, or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act).

^[2] 12 CFR Part 1002 Supp. I Sec. 1002.4(a)-1; 12 CFR Part 1002 Supp. I Sec. 1002.4(a)-1. “Disparate treatment” may be “overt” (when the creditor openly discriminates on a prohibited basis) or it may be found by comparing the treatment of applicants who receive different treatment for no discernable reason other than a prohibited basis. In the latter case, it is not necessary that the creditor act with any specific intent to discriminate.

^[3] See 12 C.F.R. pt. 1002, Supp. 1, § 1002.6, ¶ 6(a)-2.

^[4] In addition, according to a recent article, private student lenders that are members of the Consumer Bankers Association do not use alternative underwriting standards due to the risk of discriminating against borrowers. See https://www.marketwatch.com/story/consumer-advocates-worry-your-college-major-could-affect-your-ability-to-get-a-loan-2019-07-24.

^[5] See https://www.nytimes.com/2007/06/19/us/19loans.html?_r=1&oref=slogin. He also specifically criticized one lender that “divided colleges into groups based on how their alumni repaid federally subsidized loans . . . .” Id.

^[6] CFPB Report: Private Student Loans (Aug. 29, 2012) at 79-80, available at

https://files.consumerfinance.gov/f/201207_cfpb_Reports_Private-Student-Loans.pdf.

^[7] Id. at 80.

^[8] In re Sallie Mae Bank, Consent Order, No. FDIC-13-0366b, FDIC-13-0367k (filed May 13, 2014), available at https://www.fdic.gov/news/news/press/2014/salliemae.pdf.

^[9] https://protectborrowers.org/wp-content/uploads/2020/02/Education-Redlining-Report.pdf.

^[10] According to the Student Borrower Protection Center data from the U.S. Department of Education, 89 percent of students at Howard University are African American, while African Americans and Latinos the comprise less than 20 percent of the students at NYU. See https://protectborrowers.org/new-report-finds-educational-redlining-penalizes-borrowers-who-attended-community-colleges-and-minority-serving-institutions-perpetuates-systemic-disparities/.

^[11] See https://www.upstart.com/blog/upstarts-commitment-to-fair-lending.

^[12] Id.

^[13] See supra n. 11.

^[14] Id.

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The hidden risks of poor water management in residential properties

Poor water management in residential properties can result in structural damage, health risks, and long-term financial strain. Water is the most important resource for any country, and having access to clean drinking water should be a right that needs to be preserved. Unfortunately, we are noticing a trend in the US right now where poor water […]

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4 days ago

April 17, 2026

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Poor water management in residential properties can result in structural damage, health risks, and long-term financial strain.

Water is the most important resource for any country, and having access to clean drinking water should be a right that needs to be preserved. Unfortunately, we are noticing a trend in the US right now where poor water management in residential properties is becoming more common.

It’s not even just access to water that gets affected when residential water management isn’t made a priority. It can result in issues with major leaks and flooding events, which affect the health and safety of residents.

Gradual Structural Damage

The worst thing about flooding or water leaks is the gradual structural damage that real estate investors have to deal with. Water can seep into materials like:

Wood
Drywall
Concrete

It can do so over time, drop by drop, and eventually cause significant damage to these structures.

A slow leak behind a wall or under a floor may go unnoticed for months, gradually compromising the integrity of the structure. Over time, this can lead to:

Warped floors
Cracked foundations
Weakened support beams

If you aren’t interested in spending hundreds or thousands of dollars to repair your residential properties, then it’s important to focus on water management in your annual plan.

Mold and Indoor Air Quality Issues

Excess moisture creates the perfect growing environment for mold. Within 24 to 48 hours, mold can start developing in damp conditions, and it often does so in hidden places like:

Behind walls
Under carpets
Poorly ventilated areas

Mold is a health hazard, especially for the very young and very old, and those who have a compromised immune system. Indoor air quality starts degrading very fast when mold growth happens, which can result in allergies, asthma, and other respiratory conditions.

Addressing mold problems can be both complicated and expensive, often requiring professional remediation to fully eliminate the issue.

Increased Utility Costs

If you notice that your utility bills have gone up in recent weeks or months, without any corresponding difference in tenants or temperature, it could be due to a water leak. Malfunctioning fixtures can also cause an increase in utility costs.

Even small, continuous leaks can add up to substantial water loss, making regular inspections and maintenance essential. That’s why paying attention to water management is so crucial for any real estate investor.

Foundation and Drainage Problems

Proper drainage is crucial to protecting a home’s foundation. Water needs to be directed away from the property, and if not done so, then it can accumulate around the base of a structure. This can lead to soil erosion, foundation cracks, and even basement flooding.

Clogged gutters, improper grading, and inadequate drainage systems are common contributors to these issues. All of these have to be addressed to prevent long-term damage to your foundation and prevent expensive repair bills that eat away at your budget.

Professional eavestrough installers are necessary to ensure rainwater stays away from your foundation and moves away from the property properly.

Pest Infestations

No homeowner or investor wants pests in their residential properties. It’s not good for the health of the residents, nor is it good for the reputation of the properties in attracting future tenants.

Moist environments often attract pests such as:

Termites
Rodents
Insects

Standing water or damp areas provide ideal conditions for these unwanted guests to thrive.

Once pests are established in your property, they will start causing further damage by eating away at certain structures. To get rid of them requires expensive pest control services and takes time.

Insurance and Financial Implications

Even though insurance does cover certain types of water damage, it doesn’t cover all forms of water damage, and thus, you might end up paying out of pocket in certain cases.

Damage resulting from neglect or lack of maintenance is often excluded from coverage. That’s why it’s so important to apply water management strategies to all of your residential properties.

If you wish to sell your property later, then it’s important to be very cognizant of water damage, as buyers will conduct inspections that could alert them to such water damage and prevent your home from selling in the future.

Frequently Asked Questions

What Are Some Preventive Measures for Water Management?

There are many home safety tips you can follow to ensure your home stays safe from water damage.

Regularly inspecting plumbing systems, cleaning gutters, and ensuring proper drainage can help identify problems early. Installing moisture detectors, maintaining appliances, and addressing leaks promptly are also effective strategies.

You can also hire a water damage specialist and have them take a look at your home to ensure nothing untoward is going on, especially if you notice a major change in your utility bills.

How Does Water Damage Interior Spaces?

Water damage can occur without the home dwellers noticing it. In some cases, the water damage to interior spaces is very apparent, as when the ceilings start sagging or the walls and ceilings develop water stains.

You might also notice the floors rotting or warping.

In addition to structural concerns, water damage can ruin personal belongings such as:

Furniture
Electronics
Important documents

The emotional and financial cost of replacing these items can be significant.

Nothing good comes out of water damage, but it’s highly preventable if you only take the steps mentioned above. Do not become lazy or complacent in this situation. It could be the difference between saving hundreds of dollars in water damage bills and not.

Protect Yourself From the Risks of Water Damage

Not everyone places such a priority on water management, and that’s a shame. It’s truly when you are dealing with water damage that you regret this decision.

Residential water management can save you hundreds or even thousands of dollars in bills in the future. It’s worth the time and resources you place upon it.

By staying vigilant and adopting proactive maintenance habits, homeowners can protect their properties and protect their investment from degrading into a money-sucking pile of stones.

Please check out related articles on our website for more interesting articles on a wide variety of subjects.

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Black Micro-Schools Deserve Recognition: NABML Creates National Standards and Resources

BLACKPRESSUSA NEWSWIRE: Black families are the fastest-growing demographic in alternative education. Discover how the National Association of Black Micro School Leaders is providing educators with resources, training, and certification to launch thriving microschools.

Published

5 days ago

April 16, 2026

Oakland Post

by Dawn Montgomery
BlackPressUSA Contributor

Public school advocates and politicians typically spearhead the attack on microschools, focusing on their perceived “lack of oversight and public accountability.” Yet Black families are the fastest-growing demographic in alternative education. This shift is driven by the recognition that traditional public education cannot change quickly enough to serve its children’s needs. The National Association of Black Micro-School Leaders is an organization working to counter this narrative and fill a critical gap. Nicole Stewart, the founder, told The Carolinian that “Black families are the fastest-growing group in alternative education, but Black microschool founders have had no national home, no unified voice, no shared resources, and no collective power.”

Nicole Stewart, a former educator with nearly 20 years of experience in public education, retired to start her education consulting company and later opened her own school. That experience led her to discover microschools. Stewart advocates for a balance between joy and rigor in education, designing learning experiences that honor identity, strength, and purpose. She understands that microschools can be tailored to address the specific needs of the families and communities they serve.

The oversight criticism is legitimate. This concern is precisely why NABML is establishing the national benchmark for community-led education. NABML’s certification is that seal of approval, signaling to families, funders, and policymakers that a school is not merely functioning but is outstanding. Additionally, the organization emphasizes the importance of legal structures, fiscal stewardship frameworks, and community involvement as foundational to sustainability and accountability.

NABML realizes this vision via four main support systems:

Community Design Day: NABML facilitates a process in which the neighborhood tells us what its children deserve. You get to explore new learning approaches and define educational priorities for your community. A community task force is then formed to implement these ideas, and NABML supports you along the way. This creates a space where you can be a part of the process as a founding member of a microschool.

Founders Launch Lab: This professional development experience equips Black microschool founders and educational leaders with the training, operational, and strategic skills to launch and sustain thriving schools. Participants gain the business acumen and pedagogical frameworks necessary to navigate the transition from traditional educator roles to entrepreneurial school leaders.

Membership (The Vault): Members gain instant, 24/7 access to proprietary legal templates, student handbook builders, fiscal stewardship frameworks, and zoning blueprints designed specifically for the microschool model. They also join a curated community of mission-aligned founders through monthly “Brilliance Circles” and a private digital forum. Membership unlocks the NABML Fund, a curated capital pool designed specifically for the network, removing a major barrier to school launch and sustainability.

Certification: This is the seal of approval that tells families, funders, and policymakers that your school isn’t just operating; it is also excelling. NABML is currently developing the national benchmark for community-led education, making sure that certified schools meet rigorous standards for student outcomes, community engagement, and fiscal responsibility.

Whether you’re a parent seeking educational alternatives, an educator ready to launch a microschool, or a policymaker committed to expanding equitable education options, NABML invites you to be part of this transformation.

Ready to start or support a microschool? Visit https://nabml.org/ to learn more, access resources, or join the Founders Launch Lab.

Want to invest in Black educational futures? Make a donation at https://secure.qgiv.com/for/naobml/ to support founders in building schools that serve their communities.

Every microschool launched is a community transformed. Every founder supported is a generation of Black children empowered to thrive.

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IN MEMORIAM: Rest in Power — Minnesota Loses a True Warrior in Yusef Mgeni

MINNESOTA SPOKESMAN RECORDER — Yusef Mgeni, a brilliant historian, community organizer, former St. Paul educator and fierce advocate for Black people, died on April 7, 2026, leaving behind a legacy that will echo through generations of Black Minnesota history and community building.

Published

7 days ago

April 15, 2026

admin

By MSR News Online

Minnesota and the world lost a powerful voice and a true warrior on April 7, 2026. Yusef Mgeni is gone, but his legacy will echo for generations.

Yusef was a brilliant historian, a community organizer, a former St. Paul educator, and a fierce advocate for Black people. He carried with him an extraordinary archive of speeches, books, articles, and photographs documenting the work of countless Black scholars and leaders. His knowledge was not just deep. It was generational. Talk to him about any subject concerning Black history, and he would give you a dissertation.

His roots in this community ran deeper than most people knew. Yusef was the grandnephew of Fredrick McGhee, the pioneering 20th-century civil rights activist and attorney who made his mark in St. Paul at the turn of the century. That lineage was not lost on Yusef. He carried it forward with pride and purpose, spending decades making sure the stories of Black Minnesotans were told, preserved, and passed on.

As a journalist, Yusef called NAACP leaders and community figures to identify the issues that mattered most to Black people and wrote about them in local newspapers. He was a contributor to the Minnesota Spokesman-Recorder, a platform he understood and respected deeply. As a former St. Paul NAACP vice president, he remained active and engaged well into his retirement, answering emails and voicemails for residents who were at their wits’ end, helping them navigate evictions, legal challenges, and systemic barriers.

“Generally, they contact us when they are at their wits’ end,” he once said. “They are going to get evicted; their car is getting repossessed. We assist in navigating the system.”

His work was always about access. Under his leadership and alongside other NAACP leaders, the St. Paul chapter helped establish a landmark covenant between the police and the St. Paul community in 2001, a model that contributed to dramatically lower excessive-force costs than in Minneapolis in the decade that followed.

Yusef was also a passionate champion of ethnic studies in Minnesota’s schools, understanding that education rooted in Black and Brown history was not a supplement to American history but central to it.

“Ethnic studies is also American history,” he said. “The fact that the legislature and the MDE have both endorsed ethnic studies requirements in schools is a real plus for giving people the opportunity to explore and learn more about American history, and more importantly, to see themselves reflected in that learning.”

In the 1970s and ’80s, Yusef worked alongside Mrs. Clarissa Walker at the Sabathani Community Center, where they poured their energy into uplifting and empowering the community. Their work helped shape the cultural and political landscape of South Minneapolis during a critical era. They were part of a generation that built institutions, nurtured young people, and fought for justice with unwavering commitment.

Yusef also played a key role in the early development of KMOJ Radio, helping to establish a platform that amplified Black voices long before it was common or convenient. His activism extended through education, the St. Paul NAACP, the Million Man March, and the Urban Coalition, always rooted in a deep and abiding love for his people.

He was also an interviewee in the Rondo neighborhood oral history project preserved by the Minnesota Historical Society, ensuring that the voices and stories of that community would never be lost.

Not long ago, a colleague was blessed to sit with Yusef at his home, where he reflected on his life and his legacy. He talked about his work in education, his activism, and his years of service to the community. But what stood out just as much was how he spoke about his family and his people, with warmth, with pride, and with purpose.

Today, we honor him not only for what he accomplished but for the spirit with which he did it.

A scholar. A builder. A warrior. A keeper of our stories.

Thank you, Yusef, for everything you gave and everything you sacrificed on behalf of Black people. Your legacy stands tall, and our community is better because of you.

Rest in Power, Yusef Mgeni.