Michael Sun

Advised by Marius Guenzel, Assistant Professor of Finance (Wharton)

The 2017 Rule on Payday, Vehicle Title, and Certain High-Cost Installment Loans issued by the Consumer Financial Protection Bureau (CFPB) aimed to curb debt traps and better protect consumers from predatory small-dollar lending practices. By mandating ability-to repay analyses, limiting rollovers, and enhancing disclosure requirements, the rule sought to shield borrowers from unfavorable loan terms and harmful products. This paper investigates whether the CFPB achieved its intended policy objectives by examining the impact of the 2017 rule on consumer complaints regarding payday lenders. Using the CFPB’s public Consumer Complaint Database, I employ a difference-in-difference research design that measures changes in payday loan complaint volumes around the rule’s introduction relative to a control group of mortgage loan complaints. My analysis reveals a statistically significant 18.4% increase in payday loan grievances reported to the CFPB after the rule took effect. These findings reflect success in empowering and educating consumers about their rights through disclosure requirements and financial literacy efforts, with elevated grievances signaling more assertive enforcement of violations.

Advised by Gideon Bornstein, Assistant Professor of Finance (Wharton) and Nicholas Sambanis, Kalsi Family Professor of Political Science (Yale)

While Finland's education system is often praised internationally, a distinct academic divide exists between native Finnish students and their immigrant counterparts. This research combines quantitative analysis of national exam results—specifically those of the 2018 Programme for International Student Assessment (PISA)—with qualitative feedback from educators and immigrant student experiences. The study identifies key factors contributing to this divide, including socio-economic differences, language barriers, and family and cultural dynamics. The findings emphasize the need for more inclusive educational strategies and suggest tailored interventions to ensure that all students in the Finnish education system have equal opportunities for success.