Aside from this student’s immigration status, I’d be more concerned she won’t find a real job to pay back her loan, given the focus of her studies From Fox Business: A federal lawsuit on Monday accused banking giant Wells Fargo of illegally denying student loans to young immigrants who are protected from deportation and allowed to work and study in the U.S. under a program created by former President Barack Obama.
Wells Fargo said it was disappointed the plaintiffs sued instead of working with the bank on a solution.
The young immigrants in the country illegally have Social Security numbers and documents that meet bank requirements for identification, but Wells Fargo refuses to give them loans based on their citizenship status, according to the lawsuit from the Los Angeles-based Mexican American Legal Defense and Educational Fund.
The loans, meanwhile, are available to U.S. citizens and permanent residents, the suit says.
It seeks a court order declaring the policy discriminatory and forcing Wells Fargo to grant the loans to those participating in the Deferred Action for Childhood Arrivals program. It also seeks unspecified monetary damages.
“Wells Fargo understands the dream of pursuing higher education and we remain focused on our responsible lending practices to assist temporary and permanent residents and U.S. citizens in obtaining student financing,” the bank said in a statement.
Banking experts say financial institutions can face unique challenges getting repaid by borrowers who are not in the country permanently, including potential difficulty in accepting payments from foreign banks.
A spokesman for Chase Bank said it does not offer student loans. An email to representatives for Bank of America was not immediately returned.