LOS ANGELES – A Latino civil rights organization filed a federal class-action lawsuit on Thursday against a student loan refinancing and consultation company for refusing services to certain immigrants because of their immigration status.
MALDEF (Mexican American Legal Defense and Educational Fund) filed the lawsuit on behalf of Roberto Roca Hernandez, 32, of Denver, Colorado. Attorneys are challenging the policy of GradFin, which offers student loan refinancing and consultation services, for refusing to help Roca to refinance his private student loans because he is not a United States citizen or Legal Permanent Resident. Roca, a practicing veterinarian, is a DACA (Deferred Action for Childhood Arrivals) recipient since 2012.
“Irrational discrimination against immigrants, regardless of its provenance, distorts our economy in harmful ways,” said Thomas A. Saenz, MALDEF president and general counsel. “DACA recipients, including those in critical professional positions like Mr. Roca, deserve fair consideration for all financial services.”
GradFin’s denial of services to Roca is a violation of Section 1981 of the federal Civil Rights Act of 1866, which prohibits discrimination based on alienage or lack of U.S. citizenship.
“Roca took out private student loans to finance his education and to achieve his American dream,” said MALDEF attorney Luis Lozada. “However, despite doing everything right, he was denied the opportunity to refinance his high-interest student loans. This is a constant reminder that DACA recipients and immigrants still face barriers even when seeking higher education.”
In December 2022, Roca contacted GradFin for a student loan consultation and refinancing of his high student-loan balance. Later that month, a GradFin representative emailed Roca informing him that company’s lenders “would not be able to refinance (his) student loans unless (he) was a U.S. citizen or Permanent Resident.” Roca has been unable to refinance his loans. He has continued to make his substantial monthly student loan payments, while trying to keep pace with inflation and the increased cost of living.
According to the company’s website, GradFin offers free, one-on-one access to student loan consultation and repayment as well as services for refinancing credit cards, private and auto loans. GradFin is owned by KeyBank. Headquartered in Cleveland, Ohio, KeyBank is the 25th largest bank in the U.S.
The lawsuit was filed in the U.S. District Court for the District of Colorado.
This is the 18th lawsuit filed by MALDEF since 2017 challenging the policies of financial institutions that discriminate against DACA recipients.
Read the complaint HERE.