Released: July 25, 2019
Your college major may affect your ability to get a loan
Source: Jillian Berman, MarketWatch
When students choose where to attend college and what subject to major in, they can expect those decisions to have an impact on certain aspects of their life, like their career or earnings. But if some financial technology companies have their way, that information could increasingly be used to determine a lot more — including whether a borrower can access credit and how much they pay for it.
Already, some personal and student loan providers are using this type of data in addition to more typical underwriting criteria. The idea is that a borrower’s school or major may be a better predictor of their future income and ability to repay a loan than what’s measured by a traditional credit score.
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