Waiting on SCOTUS, UCLA Looks to Lending Circles for Deferred Action
MAF’s collaboration with UCLA’s Undocumented Student Center will bring Lending Circles for Deferred Action to more Los Angeles communities.
A current Supreme Court case could lead to skyrocketing interest in one of our signature programs, Lending Circles for Deferred Action.
In 2014 , President Obama announced an executive action to expand the “Deferred Action” program to grant “dreamer” youth and their parents a type of temporary permission to stay in the U.S. Although this policy has been blocked in the case United States v. Texas, a favorable Supreme Court decision expected in June of this year could make 5 million people eligible for DACA and DAPA.
For the many eligible UCLA students, affordability is a major issue.
Studies have shown that 43% of those eligible for DACA choose not to apply because of the high application fee. So when Valeria Garcia, Program Director for the Undocumented Student Program at UCLA, learned about the Lending Circles for Deferred Action program, she thought it would be a great way for UCLA students to finance their DACA applications. UCLA’s Undocumented Student Program provides a welcoming and safe space to help students navigate UCLA by offering mentorship, programs and workshops tailored to their unique needs.
Now, for the first time, UCLA students have the opportunity to join the Lending Circles program.
This partnership will enable UCLA students to pay for the $465 application fee with a zero-interest loan, and build their credit histories at the same time. Young, college-age
d youth historically have low credit scores. In a study conducted by Experian, millennials’ average credit score was over 50 points lower than the average credit score in the U.S. and close to 100 points lower than that of baby boomers.
With a growing network of Lending Circle providers, getting signed up with the program will be easy for UCLA students. Los Angeles partner providers (including including Building Skills Partnership (Los Angeles), Pilipino Workers Center of Southern California, Mexican American Opportunity Foundation (MAOF) and Korean Resource Center (KRC)) have already helped participants loan and borrow nearly $10,000 in Lending Circles loans.
UCLA students can now feel empowered to take action, to build their credit, develop sound savings habits and put money aside toward specific goals, by working with these existing partners offering the program in their own backyards.
With immigration reform on the horizon, new opportunities for collaborations like this one can help remove the financial barriers many aspiring citizens face. In January of this year, MAF launched the Build a Better LA campaign for exactly this reason. This past April, we welcomed three new partner providers through this campaign: East LA Community Corporation, Koreatown Youth + Community Center, and LIFT-LA. Together, with local partner providers and organizations like UCLA’s Undocumented Students Program, we hope to reach more hardworking families in need of an affordable financial product – and a path out of the financial shadows.
Curious to learn more about Lending Circles for Deferred Action? Check out LendingCircles.org for more information.