BCNA’s Individual Development Account Program Enables Young Refugees to Reduce Their Student Debt
BCNA’s Individual Development Account Program Enables Young Refugees to Reduce Their Student Debt
Although mortgage debt is still the largest category of debt in the U.S., the amount of debt held by students has recently surpassed both credit card and auto loan debt. According to Federal Reserve data, 60% of students have to take out loans to finance their education, and they’re borrowing more than ever before. Over the past 25 years, the cost of going to college has spiked 440% and student loan debt has tripled since 2004 and now stands close to $1 trillion.
One group of students that struggles particularly hard with this burden is young refugees; while intensely committed to studying hard, working hard, and making a new life for themselves in the U.S., they generally have fewer resources to find loans and to start paying off the debt.
Thanks to the Office of Refugee Resettlement (ORR), which funds our IDA Program, students like Binika Churana and Abdoul Diallo have more time, resources, and energy for their school work and fewer sleepless nights worrying about the debt their families are taking on in order for them to get degrees and the credentials they need to get jobs.
Binika Chunara – a refugee from Nepal – enrolled in the IDA Program after learning about it from Francess Smith, IDA Program Specialist at BCNA. Binika completed the required workshop and used her savings plus $2000 in matching funds from the IDA Program towards her tuition at Baltimore City Community College, where she is majoring in bio-technology and computer sciences.
Abdul Diallo — a refugee from Guinea– works part-time as a cashier and studies criminal justice full time at John Jay College of Criminal Justice. 
By participating in our IDA Program, he was able to get a matching grant for his $2,000 savings and purchase a laptop computer and books to support his college studies. Because he no longer needs to spend hours in the college library to use the computers, Abdul can now study and complete assignments from anywhere.
Since October of 2000, the Office of Refugee Resettlement (ORR) has provided $2.8 million in funds for match grants for BCNA. The total investment of the 1,141 participants into assets like micro-business, further education and recertification, vehicle purchase, and home-ownership from savings, match funds, and loans totaled over $24 million. We’re looking forward to continuing our partnership with ORR to help provide brighter futures for clients like Binika and Abdoul.