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#2221041 - 09/05/19 08:04 PM Fair Lending Issue?
Anonymous
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We have an applicant that receives some different types of...income. Well, I am not sure if this is income, which is what is causing concern.

She receives a monthly amount from a not-for-profit that covers a portion of her schooling (like a monthly stipend). The award letter states that it is for her tuition, books, and living expenses. There is a GPA requirement.

She also receives student loan funds from the university after her tuition and such is paid. This is on a per-semester basis.

Do we count have to count these as income? If her GPA drops, no more stipend. If she quits school, no more stipend. And I have a hard time fathoming that we would use funds from one source of debt (student loan) as income for a new source of debt.

We are thinking about denying the loan because these sources of "income" are not guaranteed to be ongoing. I understand that anyone can quit their job a day after they obtain a loan as well. So I don't know which way to go on this one.

Does anyone have a recommendation? Or know of a good reference that I can refer to?

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#2221043 - 09/05/19 08:21 PM Re: Fair Lending Issue? Anonymous
TB 12 Offline
Power Poster
TB 12
Joined: Feb 2005
Posts: 6,559
Foxboro
There are several things to take into account before answering this:

1) What type of loan did they apply for?
2) Is there a history of this type of income?
3) How far into her curriculum is she?
4) Is there any other source of income?
5) Is this "income" claimed on taxes?

From the description, I don't think it could be considered as income, but the final answer would depend on the answers to the above (subject to further info/explanation after reviewing the above).
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#2221050 - 09/05/19 08:55 PM Re: Fair Lending Issue? Anonymous
Anonymous
Unregistered

Answers below

1) What type of loan did they apply for? Personal Loan (unsecured)
2) Is there a history of this type of income? (Yes-- although we don't know how long. We have an award letter)
3) How far into her curriculum is she? (She has been in school over 5 years)
4) Is there any other source of income? (Yes, although It isn't much to support her expenses and an added loan payment)
5) Is this "income" claimed on taxes? (not sure, we can inquire)

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