Do they tell students they may be saddled with debt for 30 years and that the cost of tuition is much larger than the incomes they get from their majors?
> BloomTech falsely claimed its “income share” agreements were not loans, did not create debt, did not carry a finance charge, and were “risk free.” In fact, the agreements are loans with an average finance charge of $4,000. The loans carry substantial risk, as a single missed payment triggers a default and the remainder of the $30,000 “cap” becomes due immediately. BloomTech further hid the cost and nature of the “income share” loans by not disclosing key terms like the finance charge and annual percentage rate, as required by law.
Student loans from a legitimate lender don't come with balloon payments, the APRs and any finance charges are clearly disclosed, etc., and they're not making up graduation rates.
ceejayoz|1 year ago
> BloomTech falsely claimed its “income share” agreements were not loans, did not create debt, did not carry a finance charge, and were “risk free.” In fact, the agreements are loans with an average finance charge of $4,000. The loans carry substantial risk, as a single missed payment triggers a default and the remainder of the $30,000 “cap” becomes due immediately. BloomTech further hid the cost and nature of the “income share” loans by not disclosing key terms like the finance charge and annual percentage rate, as required by law.
Student loans from a legitimate lender don't come with balloon payments, the APRs and any finance charges are clearly disclosed, etc., and they're not making up graduation rates.
throw123123123|1 year ago