1. New Hampshire Statewide Individual Development Account (IDA) Collaborative ____________________________________ Marcy Meyer Director of Asset Development New Hampshire Community Loan Fund (603) 224-6669 mmeyer@communityloanfund.org mmeyer@communityloanfund.org

2. New Hampshire Community Loan Fund Non-profit Community Development Financial Institution (CDFI) Loans, programs and services to promote affordable housing, economic development and community opportunity Current areas of focus: manufactured housing, small business development, child care, IDAs/matched savings

3. What is an IDA? Matched savings account for eligible high return assets Offered in combination with financial education and asset-related training/counseling – incentivizes participation in training Targets lower-income individuals/households Helps income-eligible individuals accumulate savings more quickly to pay for a qualified asset Can reduce the amount of money borrowed to pay for an asset or provide financing if loans or other resources not available Promotes financial self-sufficiency and long-term financial opportunity Encourages savings behavior

4. NH IDA Program Objectives Help program participants: Set realistic financial and asset-related goals Obtain financial skills and knowledge Obtain asset-related skills and knowledge Develop or improve regular savings behavior Acquire assets that promote financial security and opportunity

5. NH IDA Program Overview 3:1 match – 300% return on the investment! Up to $2,000 matched – Up to $6,000 subsidy – Up to $8,000 in total available funds Eligible Assets: – First-time home purchase – Small business/self-employment development – Vehicle purchase (through More Than Wheels only) – Post-secondary education/training – Home Repair (Coos and Grafton Counties only)

6. NH IDA Program Requirements Must fall within income and net worth limits At least one household member must have a source of earned income No minimum age requirement Regular savings required – at least $25/month until matchable savings limit reached 6 hours of financial fitness/asset training required before application 10 hours of financial fitness/asset-related training required each year in program Participants must be in the program for 6 months before IDA match can be accessed

7. Other Program Information of Interest Federally-supported IDAs are not counted as an asset for federal aid programs, so will not impact eligibility Participants can withdraw from the program at any time, taking their personal savings with them Only interest earned on participant’s personal savings is potentially taxable, whether the IDA is federally- supported or not

8. NH IDA Program Model Back-room operations managed by the New Hampshire Community Loan Fund Direct services to program participants provided by Community Partners in local communities

9. How do Education IDAs work? Student financial aid option Can reduce student loan and/or work study burden Can help with the estimated family contribution Can fill a gap left if a school cannot provide the full Financial Aid Package needed For adult students, represents an alternative to scholarships Helps students who cannot access federal financial aid Helps students from groups traditionally reluctant to take out loans Can be used for tuition, fees, books, supplies and/or equipment purchased at or through an approved educational institution Must be used at a post-secondary institution or program eligible under U.S. Department of Education guidelines

10. General Benefits of Education/Small Business IDAs Education IDAs Increase access to post-secondary education/training for lower-income students Create motivated students with a commitment to entering and staying in school because they have a clear plan and have made a personal financial investment of their own savings Increase access to support services that promote student success in and out of school Financial fitness training encourages positive financial behavior that not only helps with student retention, but future employability (credit score!)

11. Benefits to Post-Secondary Schools of Offering Education IDAs Help schools meet mission of access by promoting access to education for lower-income students Promote positive recruitment and retention results IDAs can be used as an outreach tool to attract students IDA funds make it financially possible to attend school Planning process means students are prepared Training provides helpful life skills that contribute to student enrollment/retention success

12. Education IDAs & Other Student Aid Personal IDA savings – considered a protected asset by the federal government – per US Department of Education, personal savings in an AFI-eligible IDA is excluded as an asset for eligibility and assistance level determinations in connection with federal aid (not reported on the FAFSA) – Does not negatively impact ability to receive Pell Grants – Schools are encouraged to exclude IDA for state, local or school-funded assistance Continued

13. Education IDAs & Other Student Aid IDA Match Funds – Considered an outside resource (like a scholarship) – Will be assessed by an educational institution in connection with federally-supported campus-based aid and federal loans (e.g., FSEO grant, work study, Perkins loans, institutional funds, etc.) – Generally no negative impact on overall financial aid package – Typically reduce loans or work study – Schools are encouraged to exclude IDA for state, local or school- funded assistance

14. How can we work together to help your students access IDAs? Referral partners Community Partners Let’s talk about what referral partners do first…

15. What do IDA referral partners do? Regularly provide IDA information to students - distribute brochures/posting IDA information on campus - send regular IDA reminders (e-mail/snail mail) to students likely to be eligible - train Financial Aid staff to identify and refer IDA candidates Create an active referral process where students sign up to be referred to the IDA program

16. What do IDA Community Partners do? Publicize the IDA program Assist with the screening and application process Assist participants to access appropriate training Monitor participant compliance with savings and training requirements Review withdrawal requests

17. Should your school consider becoming an IDA Community Partner? Does your school provide services that involve some level of longer-term, ongoing one-on-one contact with students? Would IDAs help you promote success for students in the lower-income ranges?

18. Your questions and ideas Questions about the IDA program How do you think we can help college students access this program?

19. For more information, visit our website at: http://www.communityloanfund.org/how-we- help/ida/how-we-can-help-you/education