Low-Cost Student Lending Program to Provide Boost to DACA Students Attending Med School

Rhea-AI Summary

Northern Trust has announced a $5 million investment aimed at providing loans to DACA students enrolled in medical school. This funding will facilitate low-interest loans, enabling these students, who often lack access to traditional financial support, to pursue their medical education. The initiative is a collaboration with Self-Help Federal Credit Union and is designed to enhance diversity within the medical profession. The loans will be pegged to federal student loan rates, significantly reducing financing costs for DACA recipients.

Positive

• Investment of $5 million aimed at funding loans for DACA medical students.
• Low-interest loans pegged to federal student loan rates, helping to reduce financial burdens.
• Collaboration with Self-Help Federal Credit Union enhances financial access for underserved populations.

Negative

• None.

Northern Trust and Self-Help Federal Credit Union (Self-Help) announced today a $5 million investment to fund loans to Deferred Action for Childhood Arrivals (DACA) students who are attending or have been accepted to medical school.

DACA was created by presidential order in 2012 to protect undocumented immigrants who were brought to the U.S. as children, obeyed the law once here, and stayed in school or enlisted in the military. However, undocumented immigrant students remain ineligible for traditional sources of student loans provided by the federal government.

“This investment will benefit talented young people who have been accepted to medical school but do not have access to traditional sources of student loans,” said Connie Lindsey, Northern Trust’s Head of Corporate Social Responsibility and Global Diversity, Equity & Inclusion. “This is an impactful and innovative way to provide access to capital and increase the diversity of those who practice medicine, and we are pleased to lend financial support for this effort.”

“Thousands of DACA recipients serve on the front lines of health care and other essential services, but often students are ineligible for federal financial aid. Providing affordable, low-cost financing options for these students fills a critical void,” said Rudy Media, president of Second Federal, a division of Self-Help Federal Credit Union. “Expanding access to low-interest loans helps students avoid high-cost predatory financial products. We hope more universities and colleges will take part in this worthwhile program, which allows DACA students to continue to give back to society in their pursuit of higher education.”

Specifically, Northern Trust is lending $5 million to the Self-Help Ventures Fund, which in turn will lend to DACA medical students at rates pegged to federal student loan rates – far lower than what would be available otherwise. The effort builds on a previous Northern Trust-funded program for DACA medical students with The Resurrection Project, a Chicago-based community development organization.

The Self-Help Ventures Fund is a nonprofit 501(c)(3) loan fund capitalized with loans and grants from foundations, religious organizations, corporations and government sources. It manages Self-Help's higher-risk business loans, student loans, real estate development and home loan secondary market programs. Self-Help Ventures Fund is rated AAA, 4 stars Plus by Aeris, an independent credit rating agency specializing in assessing non-depository community development financial institutions.

About Northern Trust

Northern Trust Corporation (Nasdaq: NTRS) is a leading provider of wealth management, asset servicing, asset management and banking to corporations, institutions, affluent families and individuals. Founded in Chicago in 1889, Northern Trust has a global presence with offices in 22 U.S. states and Washington, D.C., and across 23 locations in Canada, Europe, the Middle East and the Asia-Pacific region. As of March 31, 2021, Northern Trust had assets under custody/administration of US$14.8 trillion, and assets under management of US$1.4 trillion. For more than 130 years, Northern Trust has earned distinction as an industry leader for exceptional service, financial expertise, integrity and innovation. Please visit our website or follow us on Twitter.

Northern Trust Corporation, Head Office: 50 South La Salle Street, Chicago, Illinois 60603 U.S.A., incorporated with limited liability in the U.S. Please read our global and regulatory information.

About Self-Help Federal Credit Union

Self-Help Federal Credit Union was chartered in 2008 to build a network of branches that serve working families and underserved communities. With 19 branches in California, 10 branches in Illinois, two branches in Wisconsin, and six branches in Washington, over $1.6 billion in assets, and serving more than 99,000 members, Self-Help Federal is one of the fastest-growing low-income designated credit unions in the country. It is part of the national Self-Help family of non-profit organizations whose collective mission is to create and protect ownership and economic opportunity for all. For 41 years, the Center for Community Self-Help and its affiliates have provided almost $9.9 billion in financing to help over 185,000 low-wealth borrowers buy homes, start and build businesses, and strengthen community resources. For more information, go to www.self-helpfcu.org and www.self-help.org.

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FAQ

What is the purpose of Northern Trust's $5 million investment?

The $5 million investment aims to provide loans to Deferred Action for Childhood Arrivals (DACA) students attending medical school.

How will the loans for DACA students from Northern Trust be structured?

The loans will be low-interest and pegged to federal student loan rates, making them more affordable for DACA students.

Which organization is partnering with Northern Trust for this initiative?

Northern Trust is partnering with Self-Help Federal Credit Union to provide the loans to DACA students.

What impact does the investment have on DACA students?

The investment provides crucial financial support to DACA students, allowing them access to medical education without the burden of high-interest loans.

Is there a previous program similar to this initiative?

Yes, this effort builds on a previous Northern Trust-funded program for DACA medical students with The Resurrection Project.