UCDC giving away money through Dreamsaver program

Financial aid cuts. Tuition increases. Pay freezes. It seems like college just gets more and more expensive while resources get more and more out of reach. Short of winning the lottery, how is someone supposed to pay for the education that is such an important part of getting ahead?

The Umpqua Community Development Corporation has several answers. The corporation administers programs such as Think Local Umpqua, Heartwood ReSources and the Dreamsavers Individual Development Account program. The Dreamsavers IDA provides free matching funds for eligible Oregonians to help them save for education, housing or opening a business.

An IDA is a matched savings account. It is typically offered through a local non-profit to allow a person of limited means to build wealth. The Dreamsavers program provides a three to one match on the participant’s money. If an eligible participant, for example, decides to save $2000 through the program, he or she would be eligible to receive $6000 for free. It’s that simple.

Suddenly, continuing a college education and creating the assets to build wealth are no longer out of reach for lower income residents of Southern Oregon.

Sounds great, but where’s the catch? “There is no catch. It’s just a pure and simple program to help people build assets, “said Rebekah Barger, the IDA program manager for the Umpqua CDC.

Dreamsavers is funded through Oregon state tax credits, and the money earned can be used to help eligible participants meet their goals such as paying for post secondary education, buying and maintaining a home and starting or expanding a small business, as well as with other eligible costs associated with gaining employment or purchasing a home.

Match money can be used for tuition and fees as well as books and equipment necessary for a person’s chosen field of study, such as a computer for a student, tools and equipment for a future auto mechanic or a stethoscope for a nurse. It cannot be used for living or transportation expenses.

The grant money is “not taxable because it never comes to the student,” said Barger. The money is paid directly to the eligible businesses and organizations that the participant designates.

Dreamsavers’ grant money does not affect financial aid eligibility.Dreamsavers uses different guidelines than FAFSA for determining eligibility, and people who do not qualify for financial aid money may still qualify to participate in the Dreamsavers program.

The Dreamsavers program eligibility relates to household income limits that vary based upon which of the 12 program-served counties a person lives in and the number of people in the household. Participants in the program may have a household net worth up to $20,000. The value and debt of one house and one car will be excluded, however, from this $20,000.

Dreamsavers, operating in Douglas County since 2003, has helped 86 people attend college. Barger would love to help more. “We’ve loved our relationship with UCC students, and we want more of them.” Out of the approximately 600 current participants, about one-third are saving for college expenses.

Approximately 90 percent of the Dreamsavers participants complete their savings goals and are able to obtain the matching funds to realize their dreams.

Dreamsavers has approximately 25 openings left for this year, and money is allocated to applicants on a first come, first served basis. The number of openings varies from day to day. Once a participant is accepted into the program, their match money is guaranteed provided the participant successfully completes their program.

Participants must deposit savings each month into a dedicated savings account in order for the program to match funds. The amount of money deposited depends upon the goal amount and upon the period of time the participant and adviser set to reach the goal. The savings periods generally run from six to 36 months. With the help of advisers at the CDC, the participants learn financial skills necessary for fiscal responsibility and also specialized training to help achieve their specific savings goals.

The Umpqua CDC applies for grant money each year and will know after January how much money will be available for 2011. Funding to continue the program has been guaranteed through 2016.

Participants are not allowed to join the program unless Dreamsavers has all matching funds available and guaranteed. Because funds are allocated on a first come, first served basis, “anyone interested should apply now.” If a person is awarded funds, he or she can count on the money being available when the savings goal is reached. A person can also get on a wait list after current funds are allocated.

Participation is open to all residents of the 12 county areas who meet income guidelines, are 12 years old and older and who want to save money for one of the approved goals. In addition, participants must attend a financial education class, complete specific training requirements for each goal and be able to save money on a regular basis. Only two participants from any given household are allowed at any one time.

A person is eligible to participate in the IDA program multiple times provided a person only has one account open at any given time and each time a person applies he or she meets all the requirements. Although a person can only save up to $2000 in funds to be matched with $6000 through the Umpqua Dreamsavers program, up to $20,000 in matching money can be received from the state. Other counties in Oregon offer similar programs to residents.

Any one wishing to know more about the Dreamsavers program is encouraged to contact Lisa Aldridge or Mike Charette at 541-673-4909. Information can also be viewed online at www.umpquacdc.org, from there click on the Dreamsavers link on the left side of the page.

The Mainstream is a student publication of Umpqua Community College.