University of Maryland Students Provide Insights on Earned Wage Access to State Legislators

Maryland Students Influence Legislative Policy on Earned Wage Access

In a commendable collaboration between academia and state governance, a group of industrious graduate students from the University of Maryland's Robert H. Smith School of Business have taken significant steps towards shaping financial regulations in Maryland. Responding to a request from state officials for policy recommendations, these students dedicated their skills and knowledge to explore the complexities surrounding Earned Wage Access (EWA).

The Project Background

Since its inception in October 2024, the project has involved meticulous research led by Liu Yang, an associate professor of finance. Students from both the Master of Finance and Master of Quantitative Finance programs immersively studied the implications of EWA, a financial service allowing employees to receive advances on their future wages. Unlike traditional payday loans, EWAs operate outside the realm of conventional lending, raising questions about consumer impact and regulatory frameworks.

Research and Findings

The students undertook an experiential learning project that compelled them to understand the functioning of the state's EWA programs transparently. By analyzing a comprehensive market data inquiry provided by the state, the team was able to gather information from various EWA providers regarding user demographics, financial profiles, and revenue structures. By correlating the acquired data with external resources from organizations like the Financial Industry Regulatory Authority (FINRA) and the Census Bureau, the students could derive meaningful insights into the consumer base utilizing EWA services.

Key factors explored included user demographics such as age, gender, and racial background, alongside a review of existing financial conditions, including income levels, banking accessibility, and the repercussions of utilizing such services.

Team member Yentell James, a Master of Finance student, expressed the importance of understanding whether these financial services indeed benefit individuals. “We aimed to ascertain whether these services are sufficient to help individuals navigate financial challenges before they resort to using EWA services,” James notes.

Presenting to State Legislators

The culmination of their work was presented to prominent Maryland officials in March 2025, including the Secretary of Labor, Portia Wu, and Antonio Salazar, the Commissioner of Financial Regulation. The findings of the student team drew attention to an alarming trend: an increasing dependency among users on EWA services. Furthermore, it highlighted the concerning reality that many users opted to pay unnecessary fees and tips, impacting their overall financial well-being.

James noted that fees paid by users acted similarly to an Annual Percentage Rate (APR) on a loan, with effective rates sometimes soaring beyond what could be considered reasonable, reflecting a troubling cycle of dependency.

The Broader Implications

This project not only emphasizes the essential role educational institutions play in aiding governmental bodies through thorough research but also the potential impact of academic input in formulating regulation. The insights garnered from this collaboration serve to enhance community welfare and financially empower constituents.

Shrenik Kalambur, another Master of Quantitative Finance student, reflected on the enriching experience of working on the project. He commented, “Our team was diverse and talented, allowing us to develop critical professional skills while learning how academic research informs policy decisions. Presenting to state officials was incredibly fulfilling, offering a firsthand glimpse into the intersection of academia and real-world policymaking.”

Looking Ahead

The initiative underscores a hopeful future for further collaboration between Smith School students and Maryland's legislative bodies. According to Liu Yang, this project signifies the potential for students to apply their knowledge towards societal betterment, reinforcing the commitment of the Smith School toward service to the public good. “This has been a remarkable learning journey, and it is just the beginning of a fruitful partnership between the university and state governance,” Yang remarked.

Conclusion

The impact of this collaboration extends beyond mere academic achievement; it reflects a model of how educational institutions can tangibly influence public policy and lead to meaningful improvements in the economic landscape of Maryland. As these students prepare to enter the workforce, they carry with them invaluable experiences and insights that will surely shape their professional futures, as well as those of the communities they serve.