Consumer Groups Take PayPal to Task Over Student Loan Credit Line

Consumer Groups Take PayPal to Task Over Student Loan Credit Line

your money adviserThe payment platform, in partnership with Synchrony Bank, offers a way to pay tuition at for-profit schools — at terms that are being called “predatory.”Credit...Till LauerBy Ann CarrnsStudents at some for-profit career schools could find themselves paying hefty interest charges when using a credit line offered by PayPal, a group of consumer watchdog groups warned this week.More than 150 small career schools and technical programs, most of which aren't accredited and are loosely regulated, offer students the option to pay tuition using PayPal Credit, a digital credit line marketed by PayPal Holdings and issued by Synchrony Bank, the groups found.The line, similar to a credit card but without the plastic, currently has an interest rate of about 24 percent, and is typically promoted with a six month, no-interest