You should be able to upload your pictures to your gallery and then one of us can post it to this thread. The link is at the top left of the forum screen. We can only guess without seeing pictures. I've looked at some stock photos of the bike and they all show the rack sufficiently higher than the brake arms. Perhaps the rack is bent, though you describe it as "like new" so that probably is not likely. I thought maybe the cable routing was done wrong, but the right brake arm only anchors the cable, so again not likely. The stock pictures show that the brake arms are rather long in order to clear the fat tire and fender. Are the arms for the front brake shorter? If so, perhaps the assembler installed them backwards, though I can't see Schwinn specifying different brakes front vs. rear.
I hope you are able to provide pictures soon.