Pacoima Neighborhood Council
DREAMer Loan ProgramPosted on 01/11/13
The DREAMer Loan will be used exclusively to finance the $465 application fee for individuals applying for deferred action under the U.S. Department of Homeland Security’s Deferred Action for Childhood Arrivals (DACA) program.
- Simple 2-page application
- Loan approvals within 1-2 business days
- Little or no credit OK
- 6-month term on all loans, 12-month term available for special circumstances
- Interest Rate of 12% on all loans (APR) on the declining principal balance, a typical loan of $465 for a term of 6 months would have payments of $81 per month with a total of $21 in interest paid over the life of the loan
- Check will be made payable to “Department of Homeland Security”
- Great “credit builder” loan
- Once a member of the credit union, access to other services including ATM card, CD accounts, money orders, cashiers checks, wire transfers, direct deposit, free income tax preparation services, and free check cashing
- Interest rate lower than most credit cards or payday loans
- Must have a referral letter from an approved partner organization.
- Must meet DACA eligibility guidelines as listed on the U.S. Citizenship and Immigration Services website at www.uscis.gov/childhoodarrivals
- Must have a completed Consideration of Deferred Action for Childhood Arrivals USCIS Form I-821D, Form I-765 Application for Employment Authorization, and a Form I-765WS worksheet establishing economic need for employment
- Must be an existing member or become a member of the Pacoima Development FCU or Family FCU (cost is $5 to become a member)
- Valid current photo ID from any country or valid school ID (if under the age of 18)
- Must be 18 years of age or older to apply. If under the age of 18, can apply with a parent/guardian or family member
- Valid SSN or ITIN (Individual Tax Identification Number)
- Proof of physical address in Los Angeles County
- Proof of income
Pacoima Credit Union
13168 Van Nuys Blvd.
Pacoima, CA 91331
Tel: (818) 899-8506
Fax: (818) 899-8516
“DREAMers Loan Program” Frequently Asked Questions
1. What is the objective of the DREAMer Loan Program?
The application filing fee for consideration of Deferred Action for Childhood Arrivals (DACA) is $465.
This can be a costly fee for many young adults, especially students. There are currently only a
couple of loan programs available to assist individuals with these types of loans. Our objective is for
Pacoima Development Federal Credit Union (PDFCU) to become an additional lending source for
people eligible for DACA. Individual loans would be made for the sole purpose of paying for the
application fee of $465 for DACA.
2. What are the benefits?
? Low monthly payments that young adults and students can afford. A typical loan of $465 for a term of 6 months would have payments of $81 per month with a total of $21 in interest paid over the life of the loan
? The opportunity to build a positive credit history
3. Who are checks made payable to?
Checks will be made payable directly to Department of Homeland Security for the sole purpose of paying for deferred action application fees. Borrower will be responsible for mailing payment along with all applicable paperwork.
4. How do borrowers know what they owe and how do they make payments?
PDFCU will service all loans. Borrowers will be sent monthly statements via existing statement provider. Monthly payments can be made via automatic payments (ACH) from the member’s PDFCU savings account or account at a different institution.
5. Do borrowers have access to other financial services as a member of the credit union?
To borrow, you must be or become a member of the credit union, which costs $5.00. As a member of the PDFCU, borrowers will have access to all other services offered including free check cashing, an ATM card, CD accounts, money orders, cashiers checks, wire transfers, direct deposit, free
income tax preparation (VITA), payday advance, and other consumer & business loan products.
6. What if the borrower is under 18?
Minors (under 18) may have their own savings account provided a person over 18 is a signer on the account as well. It will be possible to assist families with little or no banking/credit history. Minors may not be a “borrower” on the loans; in such cases, we can have the minor’s closest available (and willing) relative apply for the loan on their behalf.
7. Why do we require the Individual Taxpayer Identification Number (ITIN)?
Most financial institutions require the ITIN. We need it as a means of tracking and reporting. The ITIN serves as a path to not only file income tax returns, but to establish some credit history as well. For borrowers without an ITIN, PDFCU can print out ITIN application and direct them to service
providers. PDFCU can direct borrowers to VITA services at the same time.
8. Can borrowers choose a longer repayment plan?
The usual repayment term is 6 months but if there is more than one applicant per family this may be extended to 12 months so that it does not cause financial hardship.
9. What is proof of income?
Proof of income can be paycheck stubs, tax returns, bank statements, copies of checks (for individuals who may get paid from personal checks). For those who don’t have means of providing proof, they may just verify employment from employers.
10. Who are the approved partner organizations?
? Public Counsel
? UCLA Labor Center
? Korean Resource Center
? Dream Team Los Angeles
? NALEO Educational Fund
? Community Lawyers Inc.
? Esperanza Immigrant Rights Project
? Catholic Charities of Los Angeles, Inc.
? Asian Pacific American Legal Center (APALC)
? Central American Resource Center (CARECEN)
? Coalition for Humane Immigrant Rights of Los Angeles (CHIRLA)
? Mexican American Legal Defense Educational Fund (MALDEF)
? Consejo de Federaciones Mexicanas en Norteamérica (COFEM)