The proposal targets loans funded and owned by the Education Department through the Direct Loan program, as well as government-guaranteed debt owned by the government and the private sector under the Federal Family Education Loan program.
The EDA, a Great Society-vintage agency that targets loans and loan guarantees to economically depressed areas, is marked for extinction by the Administration but supported by the many lawmakers whose constituencies receive EDA money.
Last week, the five banks signed up to Project Merlin – Barclays, HSBC, Lloyds Banking Group, RBS and Santander – said they were "on track" to meet targets, loaning £56bn to SMEs in the first nine months, compared with the £76bn full-year target agreed with the government.
In the quest to meet their growth targets, loan officers often sell loans to clients already indebted to other organizations.
Last year it offered targeted loans to spur long-term investment and rebuild areas damaged by the earthquake and tsunami.
The ECB will make cheap bank loans available, including a new facility that will target loans to the real economy called Targeted LTRO.
Now it is concerned again at shoddy selling practices, like targeting loans at people who cannot afford them, and letting their debts roll over to become bigger.
Plus, as consumers set their personal savings goals in the app, the credit unions could use this data to offer them targeted loans and mortgages – similar to something like Mint.com, for instance.
To counter the behavior of banks to target loans at only the most profitable clients, and industries with long standing histories (as manufacturing, and trade), the concept of portfolio diversification according to Markowitz (1952) may offer a solution to developing a more inclusive banking system.
By contrast, the CFPB is specifically targeting loan servicers' activities to determine whether they're doing right by borrowers or violating consumer protection laws.
From slavery and Jim Crow through the war on drugs, mass incarceration, police targeting, loan discrimination, employment discrimination, housing discrimination via redlining, voter discrimination via gerrymandering and myriad, ingrained practices of rampant social discrimination the inequality has been brazen.
