IDA program offers free money
Elizabeth Taggart
MCC students may be eligible for $2,000 to help pay for school through a New Leaf, a non-profit organization partnered with MCC and Wells Fargo. It’s not a loan or a scholarship and the funds never have to be paid back. After establishing eligibility, students open an individual development account (IDA) and, after six months, their savings are matched by a New Leaf up to $2,000.
To be eligible, students must be taking at least one class in a degree or certificate program, and provide three forms of documentation.
They include three months of paycheck stubs to prove an annual income of less than $20,800 or 200 percent of the poverty level, and proof of residence like a household bill and an ID.
Participants are also required to take a financial literacy course either through MCC or classes offered by New Leaf.
“We’re hoping that the saver will get into the habit of saving and continue that for the rest of their lives,” said New Leaf representative Shannon Anderson.
Students are required to make minimum monthly deposits into the IDA and after the six month period is up, they tell New Leaf what their expenses are going to be and receive two cashiers’ checks, one from their savings account and one from New Leaf.
Anderson said participants never receive the matched funds directly; rather the checks are made out to MCC or the bookstore.
“The $2,000 is just the maximum amount that will be matched,” Anderson said. “If you have $50, then we’ll match $50, whatever is in there after six months. We match the bills, not the money in the account.”
Students may take money from their savings account before six months, but must explain what it’s for and must keep making monthly deposits or they will be terminated from the program.
The deposits must be from earned income and cannot be in lump sums unless it’s from a tax return or AmeriCorps.
Anderson said AFI, the Assets for Independence Act, the Federal grant program that makes the IDA’s possible, mandates the deposit requirements.
If students are not going to be at MCC in six months, they can take the funds with them to another university or they may be put into another IDA program run through New Leaf.
Anderson said there are really no drawbacks to opening an IDA because it’s a straight match program.
