Have you ever wondered, “Should I move to Chicago, IL?” Living in the Windy City is like being in a giant playground with endless adventures around every corner. The city is famous for its vibrant arts scene, diverse neighborhoods, and passionate sports fans. From the towering skyscrapers that touch the clouds to the deep-dish pizza that’ll make your taste buds dance, Chicago is truly one-of-a-kind.
Whether you’re exploring the museums, taking a stroll by Lake Michigan, or cheering at a baseball game, Chicago has a unique way of making everyone feel at home. In this article, we’ll discuss 11 pros and cons of living in Chicago to help you decide if it’s the right place for you. Let’s get started.
Chicago at a Glance
Walk Score: 77 | Bike Score: 72 | Transit Score: 65
Median Sale Price: $335,000 | Average Rent for 1-Bedroom Apartment: $1,835
Chicago neighborhoods | houses for rent in Chicago | apartments for rent in Chicago | homes for sale in Chicago
Pro: Rich historical heritage
Chicago’s rich historical heritage is evident in its architecture, museums, and landmarks. The city played a pivotal role in the development of skyscrapers, and a walk through its downtown area reveals architectural marvels like the Willis Tower and the John Hancock Center. Chicago’s history is also preserved in institutions like the Chicago History Museum and the DuSable Black History Museum, offering residents and visitors the opportunity to deep dive into the city’s past.
Con: Harsh winters
One of the most challenging aspects of living in Chicago is its notoriously harsh winters. Temperatures can plummet well below freezing, and the city often experiences heavy snowfall, ice storms, and biting winds that come off Lake Michigan, making it feel even colder. These conditions can make daily commutes and outdoor activities quite daunting from late November through March.
Pro: Outstanding dining and culinary scene
Chicago’s dining scene is second to none, offering a diverse array of culinary experiences that cater to all tastes and budgets. From the legendary deep-dish pizza to Michelin-starred restaurants like Alinea and Chicago Cut Steakhouse, the city’s food landscape is rich and varied. Chicago is also home to a thriving street food scene, with food trucks and pop-up markets offering everything from gourmet sandwiches to international delicacies.
Con: Traffic congestion
Chicago is notorious for its heavy traffic congestion, especially during rush hours and peak travel times. The city’s extensive network of highways, streets, and intersections can become gridlocked, leading to frustrating delays and longer commute times for residents and commuters. This congestion is exacerbated by ongoing road construction projects, lane closures, and infrastructure repairs, which further disrupt traffic flow and contribute to traffic-related stress. For example, the Kennedy Expressway, one of the busiest highways in the city, experiences frequent congestion, causing significant delays for drivers traveling to and from the downtown area.
Pro: Extensive park system
Chicago is renowned for its extensive park system, offering residents and visitors alike a green escape within the urban environment. The city’s crown jewel, Grant Park, hosts the iconic Buckingham Fountain and provides a stunning backdrop to the Chicago skyline. Additionally, the 18-mile-long Lakefront Trail offers unparalleled access to beaches, parks, and recreational activities along Lake Michigan, making it a favorite among outdoor enthusiasts.
Con: High cost of living
The cost of living in Chicago is 14% higher than the national average. Rent and real estate prices in desirable neighborhoods can be steep, making it challenging for some residents to find affordable living spaces. Additionally, the city’s sales tax is one of the highest in the nation, which can further strain budgets, especially for those already struggling with the high costs associated with urban living.
Pro: Diverse neighborhoods
One of Chicago’s greatest strengths is its diversity, reflected in the city’s wide array of neighborhoods, each with its own unique character and cultural heritage. From the historic architecture of the Gold Coast to the vibrant murals of Pilsen, Chicago’s neighborhoods offer a mosaic of experiences. This diversity fosters a rich community life where various cultural traditions and cuisines are celebrated, making it a fascinating city to explore and live in.
Con: Seasonal allergies
For those sensitive to seasonal changes, Chicago’s diverse plant life and weather patterns can trigger significant allergy symptoms. Spring and fall are particularly challenging times for allergy sufferers. The city’s abundant parks and green spaces contribute to higher pollen counts. This can be a minor inconvenience for some but a major health issue for others, affecting their ability to enjoy the city’s outdoor amenities.
Pro: Vibrant arts and culture scene
Chicago boasts an incredibly vibrant arts and culture scene that is hard to match. From the world-renowned Art Institute of Chicago, which houses masterpieces spanning centuries. To the eclectic music scene that has birthed genres like Chicago blues and house music, the city is a haven for art lovers and musicians alike. The city also hosts numerous festivals throughout the year, including the Chicago Jazz Festival and Lollapalooza, drawing in crowds from all over the globe.
Con: Noise pollution
Should I move to Chicago if I like peace and quite? Maybe not. As a bustling metropolis, Chicago experiences a significant amount of noise pollution. From the constant hum of traffic to the sounds of construction and urban development, noise is a constant presence. This can be particularly challenging for those living in denser neighborhoods or near major roads.
Pro: Access to world-class healthcare
Residents of Chicago have access to some of the best healthcare facilities in the country. The city is home to top-ranked hospitals such as Northwestern Memorial Hospital and the University of Chicago Medical Center. Each of which are renowned for their research, specialty care, and medical education programs. This access to high-quality healthcare is a significant advantage for those living in and around Chicago.
Jenna is a Midwest native who enjoys writing about home improvement projects and local insights. When she’s not working, you can find her cooking, crocheting, or backpacking with her fiancé.
Amidst a backdrop of inflation, rising borrowing costs, and growing debt levels, employee financial wellness has been on the decline in recent years. According to PwC’s 2023 Employee Financial Wellness Survey, a full 60% of full-time employees are stressed about their finances. Indeed, employees are even more concerned about their finances today than during the height of the pandemic.
Given that money worries can take a toll on employee health and well-being, as well as productivity at work, it makes sense that a growing number of employers are enhancing support for financial wellness. Bank of America’s 2023 Workplace Benefits Report found that 97% of employers now feel responsible for employee financial wellness (up from 95% in 2021, and from 41% in 2013).
Regardless of how well-compensated your staff may be, this type of resource can help workers feel more financially confident and prepared for the future. Here’s a look at 10 reasons why adding this benefit is so important.
1. Decreases Distractions and Increases Productivity
According to PwC’s Survey (which included 3,638 full-time employed adults across a variety of industries), financially stressed employees tend to be more distracted and less engaged while at work. The study found that financial stress and money worries had a negative impact on the respondents’ sleep, mental health, self-esteem, physical health, and personal relationships. Nearly one-third of employees surveyed admitted that financial insecurity has negatively impacted their productivity at work.
When employees are able to easily get answers to their financial questions and access on-site support when dealing with money problems, there’s a good chance they’ll be less stressed about their finances and more able to focus on their jobs. That’s a win for both employees and employers.
2. Improves Employee Physical Health
Financial stressors have been found to correlate directly with not only mental health challenges but also with poor physical well-being. As the American Psychological Association points out in their Stress in America 2023 report, stress and anxiety put the body on high alert and ongoing stress can accumulate, causing inflammation, wearing on the immune system, and increasing the risk of a number of different ailments, including digestive issues, heart disease, weight gain, and stroke.
Providing your employees with the support they need now can go a long way toward staving off physical health challenges down the line.
3. Builds Loyalty
By offering financial wellness programs, employers demonstrate a commitment to their employees’ well-being, which can help foster employee loyalty and increase retention rates.
The PwC study found that just 54% of financially stressed employees felt there was a promising future for them at their employer, and they were twice as likely to be looking for a new job than employees who were less stressed about their personal finances. What’s more, 73% of financially stressed employees said they would be attracted to another employer that cares more about their financial well-being compared to just 54% of non-financially stressed employees.
Recommended: 3 Ways to Support Your Employees During Times of Uncertainty
4. Can Help Reduce the Burden of Student Debt
Employees struggling to pay down student debt often have difficulty contributing to 401(k) plans and achieving other financial goals, such as buying a house or car. By offering student loan repayment benefits and education, employers can reduce this burden and help employees plan for the future.
The good news is that these programs recently became more affordable. Under the Coronavirus Aid, Relief and Economic Security (CARES) Act, employers can now provide $5,250 tax-exempt annually for an employee’s student loan repayment through 2025. That means employees won’t pay income tax on contributions made by their employers toward educational assistance programs, yet the employer also gets a payroll tax exclusion on these funds.
A growing number of employers are offering some form of loan repayment support. In 2021, only 17% of companies offered any of these benefits. In October 2023, 34% of employers offered student loan benefits.
Recommended: How Student Loan Benefits Can Help Retain Employees
5. Employees Want It
According to the PwC study, the vast majority of employees want help with their finances. Not only that, the stigma around getting help with finances appears to be lifting. In 2023, employees overall were less likely to be embarrassed to ask for guidance or advice about their finances than they’ve been in the past: Just 33% said they find it embarrassing, compared to 42% in PwC’s 2019 survey.
In Bank of America’s Workplace Benefits Report (which surveyed more than 1,300 employees and nearly 800 employers), 76% of employees said they felt that employers are responsible for their financial wellness.
6. Can Help Parents Save for Future College Expenses
In a June 2023 survey of 1,000 parents of teenagers by Discover Student Loans, 70% of subjects said they were worried about financing their kids’ college expenses. In addition, 68% of parents were concerned about the amount of debt their kids will be saddled with even after the parents offer up their own financial assistance.
Providing employees with much-needed information about 529 college savings plans and giving them a convenient way to contribute directly from their pay, can go a long way in helping to relieve the stress associated with one of their top financial concerns.
While in the past, the options for using unspent 529 funds were limited (and often meant facing tax and penalty consequences), the SECURE 2.0 Act allows savers to roll unused 529 funds — to a lifetime limit of $35,000 — into the beneficiary’s Roth IRA, without incurring the usual 10% penalty for nonqualified withdrawals or generating any taxable income. The new rule went into effect January 1, 2024 and might come as a relief to any employees who worry about having excess funds stuck in a 529 should their child end up not needing the money.
Recommended: The Importance of Offering 529 Plan Contributions in an Employee Benefits Package
7. Helps to Clarify Confusing Financial Topics
Many young professionals want to buy their first home, but they don’t know how to save for a down payment or secure a mortgage. New to the workforce, they also struggle to understand financial topics they weren’t taught in school, such as income tax deductions (especially as they get married and have children), the necessity of life insurance, and wealth management and investing.
At the same time, older employees might feel overwhelmed by the financial options available to them. With educational resources and access to experts through a financial wellness program, employees can find the information they need from vetted and trusted sources. In PwC’s survey, 68% of employees said they use their employer’s financial wellness services such as coaching, workshops or online tools.
8. Protects Employees
Sometimes healthcare benefits just aren’t enough. In the event of a health emergency, employees need to be prepared for insurance deductibles and other unexpected costs. Solid financial preparations can prevent them from dipping into savings or making hardship withdrawals from 401(k) plans. Those withdrawals can not only damage their prospects for long-term financial stability, but also create administrative headaches for HR.
Providing an automated emergency savings program is fast becoming a way for employers to help provide a foundation for financial well-being for workers. These plans allow employees to make paycheck contributions to a dedicated account (possibly with a company match), and can help make your workforce more financially resilient in the face of life’s “What Ifs.”
Recommended: How Much Should Your Employees Have in Emergency Savings?
9. Enhances Your Organization’s DEI Efforts
These days, many employers of all sizes have a diversity, equity and inclusion (DEI) strategy or program in place to increase inclusion in the workplace. Offering financial wellness benefits to employees is yet another way to foster a more equitable company culture.
The reason is that financial wellness benefits can help level the playing field by helping to empower minorities and underrepresented groups, who may have more financial stress and encounter more barriers to economic opportunities. Giving all employee populations access to programs that can help them buy their first homes, pay down student debt, save for emergencies, and invest for the future allows them to build wealth for generations to come.
Recommended: How to Support Your Low-Wage Workforce
10. Helps Employees Plan for Retirement
Employer-sponsored retirement plans can help to ease the financial stress that stems from retirement planning. In addition to offering a retirement plan, you might also provide education programs on planning for retirement, understanding different types of accounts available, and best places to get started based on age and goals.
In addition, you might consider instituting a 401(k) match for their student loan payments. Thanks to a provision in Secure Act 2.0 (that went into effect at the start of 2024), companies can match employees’ qualified student loan payments with contributions to their retirement accounts, including 401(k)s, 403(b)s, SIMPLE IRAs, and government 457(b) plans. With this benefit, employees won’t need to make the decision regarding whether to contribute to their 401(k)s or make student loan payments.
Recommended: How Does an HR Team Implement a Student Loan Matching or Direct Repayment Benefit?
The Takeaway
Financial stress is a major concern for today’s employees, and something a growing number of workers want their employers to help with. Providing support for financial wellness can help boost employee engagement and retention, stave off mental and physical health concerns, help your company recruit top talent, and even lead to a more inclusive and equitable workplace.
SoFi at Work can help. We provide the benefit platforms and education resources that can enhance financial wellness throughout your workforce.
Photo credit: iStock/Inside Creative House
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If you’ve never owned a home before — or it’s been a while since you have — you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans. Here is our comprehensive guide to both first-time homebuyer loans and programs.
What is a first-time homebuyer program?
First-time homebuyer programs help make homeownership more affordable for people who haven’t ever owned a home (or haven’t owned a home in some time). These programs come in a variety of flavors, but usually include a mortgage with a better interest rate, lower down payment requirement and other upsides like down payment and closing costs assistance.
Types of first-time homebuyer programs
Low-down payment conventional loans: Conventional loan programs that require just 3 percent down
Down payment assistance (DPA) programs: Loans, grants and matching programs to help you with your down payment
Federal first-time homebuyer programs: Loans and programs backed or offered by the federal government
State, non-profit and employer-sponsored programs: Homebuying assistance at the local level
Along with these, first-time homebuyers who are students or in a certain profession might qualify for a special type of loan, as well. Below, we’ll break down what each of these programs entails:
Low-down payment conventional loans
Conventional loans are the most popular type of mortgage, and only require 3 percent down. This makes them an attractive option for first-time homebuyers who might not have considerable savings to draw from. These low-down payment loans include the:
Conventional 97 mortgage: This conventional loan, backed by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, requires just 3 percent down and a minimum credit score of 620. It also requires you to pay for private mortgage insurance (PMI), a type of policy that protects your mortgage lender should you stop paying back your loan. You’ll pay these premiums until you pay down your balance to 80 percent of the value of your home.
HomeReady mortgage: Similar to the Conventional 97 program, Fannie Mae’s HomeReady mortgage program also requires just 3 percent down (with PMI, although it might be less expensive).
Home Possible mortgage: Freddie Mac’s Home Possible mortgage program is the counterpart to the HomeReady mortgage, with a 3 percent minimum down payment requirement.
HomeOne mortgage: This Freddie Mac-backed mortgage also allows for just 3 percent down with PMI, but is available only to first-time homebuyers.
You won’t get your low-down payment conventional loan directly from Fannie Mae or Freddie Mac. Instead, you’ll work with a mortgage lender of your choosing, which might be a bank, online lender or credit union, for example.
Through state housing finance agencies (HFAs), Fannie and Freddie also back another set of 3 percent down payment programs, called HFA Preferred and HFA Advantage, respectively.
Down payment assistance (DPA) options
There are many types of down payment assistance, including:
Down payment assistance loans
Many first-time homebuyer programs offer a lower-cost first mortgage to help you buy the home, then a second mortgage to help you cover your down payment and closing costs. These second mortgages are commonly structured as either:
Low-interest loans: A low-interest second mortgage you’ll repay over the course of a few years
Deferred-payment loans: A no-interest second mortgage you’ll repay when you sell the home, refinance or pay off your first mortgage
Forgivable loans: A second mortgage you won’t have to pay back so long as you stay in the home for a certain amount of time (the exact period depends on the program) and stay up-to-date with your mortgage payments
Down payment savings match
Down payment savings match programs provide matched funds up to a certain amount. The money can only be used for your down payment and closing costs.
One type of matched savings program is an Individual Development Account (IDA). If you qualify, you’ll work with an assigned counselor to deposit funds into an IDA over a set period of time. If you follow the savings plan, you’ll receive the match when you close on the home.
Down payment grants
A down payment or first-time homebuyer grant is essentially free money to help you cover your down payment or closing costs. The grants are usually awarded to low- or moderate-income borrowers, typically defined as those earning no more than 80 percent of the median income in their area. They might have other requirements, too, like a minimum credit score and maximum home purchase price.
Federal first-time homebuyer programs
Government-backed mortgage loans
The Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and Department of Agriculture (USDA) back mortgage programs that are often an option for first-time homebuyers. These loans aren’t created or funded by these agencies, however; they’re offered through approved mortgage lenders throughout the U.S. Some lenders even specialize in certain types. Here’s an overview:
FHA loan: Insured by the Federal Housing Administration, FHA loans allow you to buy a home with a minimum credit score of 580 and as little as 3.5 percent down, or a credit score as low as 500 with at least 10 percent down. If you put down less than 20 percent, you’ll pay FHA mortgage insurance premiums (MIP), similar to the insurance you’d pay for a low-down payment conventional loan. The difference, though: You can’t stop paying FHA MIP unless you refinance out of an FHA loan entirely.
VA loan: The VA guarantees home loans for eligible U.S. military members (active duty, veterans and surviving spouses). These don’t require a down payment, though there is a funding fee.
USDA loan: USDA loans don’t require a down payment, but you’ll need to purchase in a designated rural area and all under area-specific income limits to qualify.
Good Neighbor Next Door
The Good Neighbor Next Door program, overseen by the U.S. Department of Housing and Urban Development (HUD), is geared toward law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th grade teachers. If you work in one of these professions, you could buy a home in a “revitalization area” for 50 percent off, provided you live in the home for at least three years. You can search for properties available in your state on the program’s website.
HomePath Ready Buyer Program
Fannie Mae’s HomePath ReadyBuyer program is geared toward first-time buyers interested in a foreclosed home. After taking a required online homebuyer education course, you can receive up to 3 percent in closing cost assistance toward the purchase of a property that’s been foreclosed and is now owned by Fannie Mae.This program isn’t for everyone, however: Not only are you limited in your choice of properties, but the options (like many foreclosed homes) might need lots of repairs.
Energy-efficient mortgage (EEM)
Making green upgrades can be costly, but you can get an energy-efficient mortgage (EEM) (either a conventional loan or one backed by the FHA or VA) to help finance them. This type of mortgage allows you to tack the cost of energy-efficient upgrades (think new insulation, a more efficient HVAC system or double-pane windows) onto your primary loan, without requiring a larger down payment.
However, EEMs come with larger mortgage payments (since you’re borrowing more), and there are certain requirements, including an energy assessment. Those larger payments might be worth it, though, as you could wind up saving on your utility bills in the long run.
Native American Direct Loan (NADL) and Section 184 program
The Native American Direct Loan (NADL), guaranteed by the VA, and Section 184 loan, guaranteed by HUD, provide financing to eligible Native American homebuyers. A Section 184 loan requires just 2.25 percent down. The NADL program has no down payment requirement, but is only for Native American veterans and their spouses.
First-time homebuyer programs by state
Each U.S. state operates a housing finance authority (HFA) that serves to encourage homeownership, among other responsibilities. Here are these HFAs and other first-time buyer resources by region:
Nonprofit programs
Nonprofit programs can offer exceptional value to first-time homebuyers seeking an affordable mortgage. These options tend to be reserved for homebuyers with paychecks that are significantly smaller than the median income in their area and distinguish them as a low- or moderate-income buyer, or buyers who fit certain demographic or other criteria.
Neighborhood Assistance Corporation of America
The Neighborhood Assistance Corporation of America (NACA) is a nonprofit that provides low-rate mortgages to low- and moderate-income borrowers without requiring a down payment or closing costs or any mortgage insurance. The nonprofit doesn’t use credit scores to qualify you, either: Instead, it looks at other factors such as rent payment history.
Habitat for Humanity
If your annual income is 60 percent or less of the median income in your area, you might qualify for Habitat for Humanity’s homeownership program. Along with not exceeding the income threshold, you’ll need to contribute sweat equity — in other words, help build the home or a home for another applicant — to qualify.
Employer-sponsored programs
Employer-assisted housing (EAH) programs help employees with housing needs, usually in neighborhoods near the workplace. This assistance can come in many forms, such as a forgivable loan coupled with required homeownership education.
EAH programs are often limited to certain occupations, and there could be other restrictions, such as a first-time homebuyer or specific tenure requirement, or income limits.
First-time homebuyer programs for students
If you recently graduated from college, you might be eligible for help buying your first home. For example, the state of Ohio offers a Grants for Grads program with up to 5 percent down payment assistance for anyone who finished an academic program in the last 48 months. These programs typically come with a requirement to stay put for a given time (in Ohio, it’s five years), or else you’ll need to repay the funds.
Next steps: How to apply for a first-time homebuyer program
Your mortgage lender can help you determine whether you qualify for a first-time homebuyer program, as well as apply for one if you do. You can also check out your state’s housing finance agency (HFA) website to learn eligibility criteria and take next steps to apply.
First-time homebuyer FAQ
A first-time homebuyer refers to a homebuyer who hasn’t owned a home previously. However, in terms of qualifying for a first-time buyer program, it often doesn’t have to be your very first time. Many programs define “first-time homebuyer” as a buyer who hasn’t owned a home within the last three years.
First-time homebuyer programs are geared toward people who have never owned a home. With some programs, this means people who haven’t owned a home in the past three years. Depending on the program, the qualifications might also include not exceeding a certain income or buying a home above a specific price point.
The best type of mortgage for a first-time homebuyer (or any borrower) is one that’s affordable. This might mean a loan that has a lower interest rate, lower down payment requirement, low or no mortgage insurance and other ways to save.
That said, many first-time buyers go with a 30-year, fixed-rate mortgage because the monthly payments are lower and more predictable. Two popular 30-year fixed-rate choices: conventional loans and FHA loans.
First-time homebuyer education programs are designed to help you understand the various aspects of owning a home. To qualify for many first-time buyer loan programs, you’ll need to take a course. If you’re obtaining a conventional loan, you might be able to take the Fannie Mae HomeView online class to satisfy this requirement. Check with your loan officer to learn your options.
Renting in Chicago? Discover the 10 most affordable Chicago suburbs to rent in 2024.
The Windy City, with its diverse neighborhoods and ever-evolving skyline, has much to offer its residents. But living in Chicago often comes with a high price tag, and you may be wondering how much rent costs in Chicago. The average rent is $1,572 a month for a studio, $1,907 a month for a one-bedroom unit and $2,558 for a two-bedroom unit. However, these prices may not fit your budget.
If you’re seeking a more affordable alternative to Chicago while remaining close enough to enjoy Chicago’s hustle and bustle, you’re in the right place. This article will explore 10 of the most affordable Chicago suburbs. From tranquil small towns to lively communities, you just might find your next hometown below.
Average rent for a studio: $1,450
Average rent for a one-bedroom: $950
Average rent for a two-bedroom: $1,400
Distance from Chicago: 17 miles
Apartments for rent in Oak Lawn
Our most affordable Chicago suburb is Oak Lawn. Only about 17 miles southwest of Chicago, you’re just a short distance from the city center. The average rent for a one-bedroom apartment is nearly half the cost compared to Chicago, so living in Oak Lawn can save you a lot.
In Oak Lawn, you can explore one of the parks like Oak Lawn Park District and Wolfe Wildlife Park. Additionally, you can discover a variety of local restaurants and shops in the downtown area, providing a taste of the town’s unique character and charm.
Average rent for a studio: $890
Average rent for a one-bedroom: $1,005
Average rent for a two-bedroom: $1,195
Distance from Chicago: 45 miles
Apartments for rent in Joliet
About 45 miles southwest of Chicago is our top pick of affordable Chicago suburbs, Joliet. The area is home to about 150,400 residents, and the average rents are much less than in Chicago. For example, a one-bedroom unit in Joliet costs $1,005 compared to $1,907 in Chicago.
If you move to Joliet, you’ll find a lot of fascinating places to explore. For example, you can visit the Old Joliet Prison, which offers guided tours and a glimpse into its rich history. You can also see a show at the Rialto Square Theatre, an elegant and historic venue that hosts a variety of live performances, from rock concerts to Broadway shows.
Average rent for a studio: $922
Average rent for a one-bedroom: $1,162
Average rent for a two-bedroom: $2,142
Distance from Chicago: 10 miles
Apartments for rent in Oak Park
Another great suburb for renters is Oak Park, roughly 10 miles west of Chicago. The rental prices are great as the average rent for a one-bedroom unit is about $750 a month less than in Chicago.
In Oak Park, you can immerse yourself in the town’s architectural history by taking a guided tour of the Frank Lloyd Wright Home and Studio, highlighting the undeniable style of this renowned architect. You can also visit the Ernest Hemingway Birthplace Museum, showcasing the author’s life and works. Additionally, Oak Park is home to the beautiful and expansive Oak Park Conservatory, a serene environment amidst lush botanical gardens.
Average rent for a studio: $2,022
Average rent for a one-bedroom: $1,375
Average rent for a two-bedroom: $1,450
Distance from Chicago: 15 miles
Apartments for rent in Skokie
Skokie is an affordable option for renters while remaining only 15 miles north of Chicago. With the average rent for a one-bedroom costing about $530 less than in Chicago, Skokie may be the suburb for you.
Skokie is also home to the scenic Emily Oaks Nature Center, providing nature lovers with hiking trails, wildlife observation and environmental education programs. You can also explore Skokie Northshore Sculpture Park, which has massive sculptures along landscaped paths.
Average rent for a studio: $1,260
Average rent for a one-bedroom: $1,400
Average rent for a two-bedroom: $1,980
Distance from Chicago: 40 miles
Apartments for rent in Aurora
About 40 miles west of Chicago, you’ll find Aurora, another great suburb to add to your list. Home to 179,200 residents, Aurora is an awesome option for renters looking for a city-like atmosphere with more affordable rental prices.
Aurora is home to the beautiful Oakhurst Forest Preserve, with hiking trails, birdwatching areas, and a stocked lake. You can also visit the Paramount Theatre, a historic venue showcasing a variety of performances, from Broadway shows to acoustic sets and more.
Average rent for a one-bedroom: $1,533
Average rent for a two-bedroom: $1,844
Distance from Chicago: 30 miles
Apartments for rent in Arlington Heights
Securing the sixth spot on our list, Arlington Heights is a familiar Chicago suburb. This area is home to roughly 76,000 residents, making it feel more like a small town.
Arlington Heights has a solid downtown area with a great selection of shops and restaurants, creating a lively and welcoming atmosphere. The town is also home to Lake Arlington, which has miles of trails and picturesque views.
Average rent for a studio: $1,433
Average rent for a one-bedroom: $1,573
Average rent for a two-bedroom: $1,900
Distance from from Chicago: 33 miles
Apartments for rent in Schaumburg
Next on our list of renter-friendly Chicago suburbs is Schaumburg. It’s about 33 miles northwest of downtown, meaning it’s a little longer commute into the city. But saving on rent by living in this affordable city may make the additional commute time worth it.
There is plenty to do in Schaumburg, like exploring Spring Valley Nature Center & Heritage Farm, which has trails and a 19th-century farm. Schaumburg is also home to the Woodfield Mall, which has a range of retail stores, dining options and entertainment venues.
Average rent for a studio: $1,836
Average rent for a one-bedroom: $1,600
Average rent for a two-bedroom: $1,902
Distance from Chicago: 20 miles
Apartments for rent in Des Plaines
If you call Chicago home, you might already know about Des Plaines, one of its most affordable suburbs. The rents in Des Plaines average $1,600 for a one-bedroom unit and $1,902 for a two-bedroom unit, so you’re still saving substantially compared to Chicago.
In this affordable Chicago suburb, you can spend the evening seeing a show at Des Plaines Theatre and explore the charming downtown area. You can also enjoy the scenic beauty of Prairie Lakes Park.
Average rent for a studio: $1,207
Average rent for a one-bedroom: $1,652
Average rent for a two-bedroom: $2,300
Distance from Chicago: 15 miles
Apartments for rent in Evanston
Moving to Evanston provides a more laid-back lifestyle than Chicago’s city atmosphere. But you’ll find Evanston offers lots of activities for its residents compared to other Chicagoland suburbs.
You can explore the beautiful Northwestern University campus, known for its historic architecture, college-town vibe and live events. The Evanston Art Center, which hosts various art exhibitions and classes, is also a must-visit, providing a creative outlet for art enthusiasts and a taste of the local arts scene. Additionally, you can see the skyline views of the Chicago skyline from The Lakefill, a park along Lake Michigan, making it an easy pick for top affordable Chicago suburbs.
Average rent for a studio: $2,020
Average rent for a one-bedroom: $1,820
Average rent for a two-bedroom: $2,311
Distance from Chicago: 35 miles
Apartments for rent in Naperville
Rounding out our list of affordable Chicago suburbs is Naperville. This suburb has a population of 149,100 and is roughly 35 miles west of Chicago. In Naperville, you can explore the Naperville Riverwalk, a scenic linear park along the DuPage River, perfect for leisurely walks, picnics and enjoying the majesty of the Midwest.
Naperville is also home to the Naper Settlement, a living history museum with historic buildings and interactive exhibits, giving a glimpse into Naperville’s past.
Find your next home in one of these affordable Chicago suburbs
The Chicago suburbs listed above are a testament to the fact that affordability doesn’t have to come with compromise. From quaint streets lined with cozy homes to bustling local businesses and serene parks, these suburbs offer unique opportunities for families, professionals and retirees alike.
The affordability of these suburbs doesn’t just ease the wallet; it enriches lives, fostering tight-knit communities where neighbors become friends, and memories are made. In the suburbs featured above, the spirit of Chicago thrives in a more accessible, affordable package, proving that the heart of a great city isn’t defined by its price, but by its people and the warmth of the community they build.
If you’re looking to leave your apartment and make the move from renter to buyer, make sure to also check out the most affordable Chicago suburbs to buy a home.
Methodology: Affordability is based on whether a suburb’s one and two-bedroom rent was less than Chicago and under 45 miles from downtown Chicago. Average rental data from Chicago rental market trends on October 26, 2023. Population data sourced from the United States Census Bureau.
From the economic impacts of the Covid-19 pandemic to record-high inflation to interest rate hikes from the Federal Reserve, the last several years have been plagued with financial unrest.
That may explain why only 48% of U.S. adults say they have enough emergency savings to cover at least three months’ worth of expenses, according to a new Bankrate survey. That’s nearly unchanged from 2022, when inflation reached a 40-year high.
For many Americans, this lack of reserves is a source of stress. The Bankrate survey found that a full 57% of U.S. adults are uncomfortable with the amount of emergency savings they currently have.
HR leaders have taken note. In fact, a growing number of employers now offer ways to help employees bolster their backup savings as part of their overall financial wellness benefits. If you’re interested in being one of them, read on. What follows are six moves that can help your organization build an emergency auto savings program that works best for your employees and your company.
1. Evaluate Employee Needs
The pandemic demonstrated that a huge percentage of employees in all salary ranges weren’t financially prepared for what was to become one of the most unprecedented periods of history.
This lack of preparedness added to an already stressful situation (working remotely, worries about health, child and elderly care needs, et cetera). Even as we move beyond the pandemic, however, employees are still on edge. SoFi at Work’s Future of Workplace Financial Well-Being 2022 study found that 75% of U.S. workers are facing at least one source of major financial stress. What’s more, employees are spending over nine hours per week while at work dealing with issues related to their financial situation (that adds up to a full 12 weeks of work each year).
Adding an emergency savings plan can help employees alleviate a significant amount of financial stress and provide a solution to the lack of short-term savings. This might be especially appealing for younger members of your workforce who may have fewer resources to rely on than older employees.
To determine how effective an auto savings program will be for each segment of your staff, you might think about creating a preliminary survey of employees to see what they feel they need most from a short-term savings plan.
Consider the following questions:
• Will you participate or do you feel there are already too many demands on your paycheck?
• Are you more likely to join if the company offers a match or initial contribution?
• Will you gravitate to emergency savings in lieu of long-term retirement savings?
• Do more accessible after-tax savings in a 401(k) account that can be used for emergencies appeal to you?
• Do you think a separate emergency auto account will help you think about saving for specific needs?
2. Check Out the Competition
A good next step is to determine what competitors are offering their existing talent and new recruits in the short-term financial wellness arena. For example, is an emergency auto savings program common among companies competing for your talent? Do most competitors offer a match or contribution to get employees, especially new hires, started?
Use the results of this data and the survey of employees to devise the most effective program for your employees (see below) and, importantly, to help convince team members and management why an emergency auto savings program is right for your company’s total rewards strategy.
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3. Determine the Impact of an Emergency Savings Program on Your Total Rewards Strategy
In recent years, you’ve likely had to shift or alter some of the components of your total rewards strategy, including compensation, benefits, flexibility, performance recognition, and career development. In light of those changes, where does an emergency auto savings benefit fit into the new reality? How does it fit with your HR financial wellness goals and business strategy?
The answer is likely very positive. It’s hard to imagine a total rewards strategy that doesn’t have a place for emergency auto savings, especially in light of recent times.
That said, it’s important that you structure and implement this benefit in a way that not only fills a need but enhances your overall strategy to retain, attract, and maximize talent. Be aware that when you add an important benefit such as emergency savings, you may shift the balance in your employees’ financial well-being focus from long-term to short-term goals.
As you implement the plan, you may need to realign your employee value proposition and total rewards strategy to encompass current and immediate needs while redoubling your efforts to educate and motivate employees on long-term financial wellness goals such as saving for retirement and healthcare costs.
4. Select the Solution and Roll Out Best for Your Goals
At SoFi at Work, we’ve found that selecting the right solution is critical to the utilization and effectiveness of every benefit in your total rewards strategy. Following the McKinsey framework can work well for all types of benefit rollouts, including emergency auto savings programs. These four principles can also help ensure benefit rollouts are integrated into your business strategy.
Choose Partners Wisely
Almost every benefit entails an outside partner to help administer and execute. Automatic emergency savings is no exception. Look for credible partners that can provide expert support and advice to a wide variety of employees with varying financial needs. For emergency savings, you’ll want to find a bank, credit union, or other financial institution that offers a low-cost, easy-to-use platform, like SoFi At Work’s Emergency Vault or open a Checking and Savings account with SoFi.
Focus on What’s Feasible
Make the program feasible to launch, which will help you make meaningful progress for employees in the short term as you lay down the foundation for long-term initiatives. This is key with emergency savings rollouts because by helping to relieve some short-term financial stress, you allow employees to focus on long-term goals sooner rather than later.
Make It Sustainable
Sustainable programs are able to flex with your business over time and during uncertain business conditions. Can your emergency auto-save program survive through the next period of uncertain business conditions? To answer this, your company may need to weigh questions such as whether the engagement benefits of a match outweigh the cost of sustaining the program? Is the plan flexible enough to undergo changes in the economy, your workforce, and your business strategy over time?
Get Personal
Enable personalization where you can. This way, employees are likely to feel emergency auto savings can help meet their unique needs. Offering a range of amounts that employees can automatically withdraw is the first step toward personalization. Providing calculators and other educational tools that help employees determine how much they need to save and how much they can afford to save is another personalization tactic.
Recommended: How Much Should Your Employees Have in Emergency Savings?
5. Use Communication Effectively
Top-notch communication techniques can help you drive participation and, importantly, change savings behavior in your workforce.
When asking for participation and engagement, lead with empathy. If there’s one thing the pandemic should have taught us, it’s that one size doesn’t fit all when it comes to supporting employees, who have had many different experiences and have many different needs.
Coordinating communications about the importance of emergency savings with other financial well-being education programs can help get the word out in an immediate and holistic way.
Clarity is Key
Accompany your rollout with extremely clear communications telling employees exactly what they can expect, including:
• How payroll deduction works
• How much — or how little — employees can save in the account
• Calculators, tools, and education efforts designed to help employees determine what they should/can save
• Thorough explanation of any company match offered — how much, how often, and portability
• Which bank, credit union, or other financial institution will run the account?
• How much, if any, interest will be earned
• How withdrawals can be made
• The fact that withdrawals can be made for any reason, no questions asked, with no penalties or tax consequences
• A reminder that if employees leave the company, they may easily transfer the account to their own savings
Meet Employees Where They Are
Make sure effective and thorough communications are available across platforms so you can keep up with your far-flung workforce. Simply posting on the company website and hoping people sign up won’t work, especially in these times when your remote workforce may be feeling more disconnected from corporate communications than ever.
In all communications, make sure you take a multi-platform, consumer-grade, mobile-native technology approach.
6. Take Ongoing Pulse Checks
To determine engagement and any ongoing tweaks that need to be made, you’ll want to establish metrics to measure success at least quarterly. Then you’ll want to benchmark those results against your competitors and national averages to add an “outside-in” perspective.
Solicit employee input on the success of the program in three ways — employee surveys, focus groups with critical talent segments, and analysis of recent departing employees and job candidates who declined an offer.
Metrics can also help you track how well the benefit is supporting business goals. For instance, a customer-service-oriented company may find a higher focus among phone reps and fewer errors when staff is less burdened with financial worries.
The Takeaway
These six concepts are designed to help you build a successful, engaging, and effective emergency auto savings plan. By reducing employee stress and increasing productivity and loyalty, you’ll help promote financial well-being in your workforce as well as enhance your company’s total rewards strategy and overall business objectives.
For more information on platforms that can help you set up an Emergency Savings Program, contact SoFi at Work.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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As the capital of Wisconsin, Madison is a great place to live for many reasons. Job opportunities bring in young professionals, and solid neighborhoods and kid-friendly amenities attract families. Even college students flock to Madison.
Local lakes provide ample activity in any season, and many Madison residents spend summers kayaking or fishing and winters ice skating and snow shoeing. There are also plenty of cultural experiences to partake in, and so much cheese!
When it comes to the cost of living in Wisconsin, Madison is almost at the top. Eau Claire has a higher cost, but both are only slightly over the national average. Specifically, the cost of living in Madison is just 0.6 percent above the U.S. average.
This can mean certain expenses in the city are on the higher side, but not necessarily all. To get a clear picture of what it really costs to live in the Mad City, let’s break it down.
Housing costs in Madison
Thinking about where to live in Madison can be fun. That’s thanks to the variety of neighborhoods with appealing features. Although housing costs in Madison are considerably higher than in many other Wisconsin cities, at 3.1 percent below the national average, it’s not too expensive either.
With housing costs almost the same as in Milwaukee, Madison has seen very little movement in actual rent prices over the past year. The average rent for a one-bedroom apartment in Madison is $1,344 per month. For a two-bed, the average rent is $1,622 per month. One-bed rents are actually down 5 percent over last year, while two-bedrooms apartments only saw a 3 percent increase.
Sale prices for homes also have increase by 6.1 percent over last year — the median sale price in Madison is $355,400.
Apartment hunting in Madison
No matter your budget, you can find housing options among the best neighborhoods in Madison.
For those with a plenty to spend on housing, Schenk-Atwood has one-bed apartments for $1,622 a month on average. Living here puts you in the funky section of Madison, with access to plenty of ethnic restaurants and eclectic shops. This area draws in young professionals, artists and those who want to live near the water.
Also at the higher end of the rent scale, South Madison offers up one-bedroom apartments for $1,539 on average. This is the neighborhood where the college students live. It’s the home of the University of Wisconsin – Madison.
If you’re looking for a neighborhood where rents are more closely aligned to the average, check out Near West. This community is close to Downtown, walkable and full of shopping and dining options. There’s also great lake access. Here, you’ll pay $1,347, on average, for a one-bedroom apartment.
Even living below average housing costs can put you in a great neighborhood in Madison. For those on a tighter budget, check out Marquette and South West Madison. Marquette one-beds average out at $1,295 for rent, while South West Madison has a one-bed rent average of $1,130.
Living in Marquette is more than just affordable — it’s cool. This bohemian neighborhood is the center for Madison festivals too. On the opposite end of the spectrum, South West Madison is a quiet, suburban community that’s almost totally residential.
Food costs in Madison
CHEESE. That’s what Madison is all about. Beyond those delicious cheese curds, you’ll find dishes like beer cheese soup and cheese bread. You can even find a mac and cheese pizza if you look hard enough. Since dairy farming is a key industry throughout the state, a love of dairy extends beyond cheese to other products like custard as well.
Even if you’re not heading out for a cheesy meal, but instead getting a list together to do some grocery shopping, food costs in Madison are 3.7 percent above the national average. Even though this piece of the cost of living in Madison is high, it was almost an entire percentage higher last year.
This means prices are coming down, even though they’re still higher than average, so when you’re at the store filling your grocery cart, expect to pay $5.32 per pound for ground beef, $2.47 for a half gallon of milk, 54 cents for bananas and $2.42 for a bag of potato chips.
Utility costs in Madison
Madison may be a Midwestern city, but its northern location means very defined seasons. You get cold in the winter, forcing your heater to work overtime, and hot in the summer, letting that AC rip. When it comes to snow, Madison’s heaviest months are January and December, where average snowfall exceed a foot. And as far as rain is concerned, expect to have a wet summer.
With all this weather to contend with, and temperatures that are up and down, the cost of utilities in Madison is 4.1 percent above the national average. This is pretty on trend across Wisconsin. Eau Claire gets as high as 5.4 percent above, and Milwaukee is 3.7 percent above.
This can make your average energy bill in Madison high. Paying $196.87 per month on average, for energy is no joke and will require you to budget carefully.
Transportation costs in Madison
Overall, transportation costs are one of the lower pieces to the cost of living in Madison. At 2.8 percent below the national average, transportation costs may not hit your budget too hard. Even better, Madison provides plenty of options for getting around that can help you save some money.
Madison as whole has a walk score of 64, but what’s most impressive is the city’s bike score of 75. Madison actually has a Platinum Bicycle Friendly Designation from The League of American Bicyclists. This means the city has plenty of on-street infrastructure for bicyclists. There are also plenty of trails around lakes and within local parks for riding.
Public transportation is also an option in Madison. Metro Transit includes 47 different bus routes. Some only run on certain days of the week, but the entire system services an extensive area. A one-way fare is $2, and a 31-day pass is $65.
If you are driving around Madison, and find yourself downtown, parking garages, lots and meters are all available. Garage rates range from $0.80-$1.80, while lots are all between $1-$2. Downtown meters are $2 .
Healthcare costs in Madison
While healthcare costs are hard to estimate since everyone’s needs are different, it is good to know that overall, in Madison, they’re 13.9 percent above the national average. This is a 3.6 percent decrease over last year, but it’s still high. This rate is pretty consistent across Wisconsin, with extremes in Marshfield (32.2 percent over) and Green Bay (7.6 percent below).
Your individual expenses will depend on your health, pre-existing conditions and prescription medication needs, which is why it’s necessary to look closely at your budget for this particular cost of living in Madison.
On average though, without insurance, a doctor’s office visit will cost you $204. To see an optometrist, it will cost $65.67, while the dentist will run $114.67, on average. Average medication costs, without insurance, are $476.16.
Goods and services costs in Madison
Another piece to your cost of living in Madison that sits on the high side are goods and services. They’re 0.3 percent above the national average. This incudes any of those bonus items that go into your monthly budget. They’re what you like to do, but could do without if you needed to make some budget cuts.
Compared to other cities in Wisconsin, Madison’s average costs are right in the middle. Eau Claire is higher at 16 percent over the national average, but Marshfield is 12.3 percent below. That means you’ll pay, on average, $26.67 for a haircut, $11.69 to see a movie and $8.32 for that six-pack of beer you want to bring to the house party you’re headed to on Saturday.
Taxes in Madison
Another piece that makes Madison a decently affordable place to live is its taxes. The state has a sales tax rate of only 5 percent, which is already pretty low. Dane County, where you’ll find Madison, only adds a small county tax onto this total, bringing up the sales tax rate to 5.5 percent.
This is the highest sales tax rate across the state, and pretty standard for just about every county in Wisconsin as well. It’s good news for you though since, with such a low sales tax, you’ll only pay $55 in taxes for every $1,000 you spend.
How much do I need to earn to live in Madison?
The affordability of living in Madison depends a lot on income. You need to make enough to afford your expenses, the biggest of which is housing. Experts suggest you commit 30 percent of your annual income to rent, which in Madison, means you’d need to earn $54,480 to afford an average one-bedroom apartment.
This may seem like a lot, but the median household income in Madison is $67,565. You’re in good shape already.
To be totally sure though, that rent, and all the other cost of living in Madison expenses, fit your budget, use our rent calculator to get more exact numbers.
Free things to do in Madison
Of course, if being budget-conscious is important to you, one easy way to save money in Madison is to enjoy all the activities that are already free. With this plan, you could visit:
University of Wisconsin – Madison Arboretum — with free, guided nature walks, adult education programs and family activities, you can get a lot out of the 1,200+ acres of greenery
Olbrich Botanical Gardens — walk through 16 acres of landscapes and Midwest-hardy plants before stepping into the indoor tropical conservatory
Wisconsin State Capitol — take a tour of the capitol building, the only one in the entire country with a granite dome, and see how local government happens
Madison Museum of Contemporary Art — explore exhibits and collections that preserve modern and contemporary art
Henry Vilas Zoo — one of the only free zoos in the country, see over 650 animals from almost every continent as you explore a rainforest, the high plains, the prairie and more
In addition to all the free museums and activities across the city, Madison also provides a lot of lakes to enjoy. While you will have to pay to rent recreational equipment if you don’t have your own, hiking and swimming never cost a thing. The Madison Chain of Lakes includes:
Lake Mendota
Lake Monona
Lake Waubesa
Lake Wingra
Lake Kegonsa
The largest lake, Lake Mendota, has 26 miles of shoreline and is the best place to catch fish. Lake Monona is ideal for water activities, while Lake Waubesa is a favorite for relaxing on the beach. Lake Wingra is almost surrounded by woods, while farmland encloses Lake Kegonsa. Each lake gives you a different experience, lets you spend time outdoors and is budget-friendly. What more could you want?
Living in Madison
For a city where you can get your fill of cheese (and beer) while accessing so many lakes and forests, Madison is the perfect Midwest choice. Living here is not only right on that affordable line, but it’s a city full of activities, amenities and free fun.
Will Madison fit into your lifestyle and ideal cost of living? There’s only one way to find out, so grab your calculator.
The Cost of Living Index comes from coli.org.The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of October 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Higher education could soon become more affordable for more than 700,000 of the incarcerated people in the U.S. Starting July 1, they’ll become eligible for Pell Grants for the first time in nearly 30 years, regardless of sentence length or conviction.
Pell Grants are a type of need-based financial aid from the federal government that gives recipients up to $7,395 per academic year to cover college costs like tuition, books and other fees. Unlike a loan, the grants never need to be repaid; students qualify based on financial need.
Incarcerated people — those in juvenile justice facilities and local, state and federal correctional facilities — will be able to use these Pell awards to pay for prison education programs (PEPs), which can lead to credentials like a professional certificate, an associate degree or a bachelor’s degree from a partner university.
Though the change is effective July 1, students may not be able to enroll in a PEP using Pell Grants immediately, says Ruth Delaney, associate initiative director at the Vera Institute of Justice focused on education reform in prisons. Some programs may start this fall, she says, but even then, enrollment won’t begin until later in the summer.
Here’s what you need to know about the Pell Grant expansion for prison education programs and how incarcerated students can access these funds.
Impact of Pell expansion for incarcerated students
Without access to Pell Grants, higher education has been virtually out of reach for most incarcerated people, who earn an average minimum wage of 86 cents per hour in typical prison jobs, according to a 2017 analysis by the Prison Policy Initiative, a nonprofit public policy think tank. There were nearly 800 PEPs in the early 1990s, but after a 1994 crime bill blocked incarcerated students from receiving Pell Grants, the number of PEPs shrank to eight by 1997, according to the Vera Institute, a nonprofit that supports criminal justice reform.
Obtaining a higher education degree or certificate can help incarcerated students find stable careers and better pay when they reenter the workplace. People who participate in correctional education are also 43% less likely to return to prison within three years than those who don’t participate, according to a 2018 report by the Rand Corp., a public policy research organization.
Some incarcerated students have been able to access Pell Grants for years as part of an experimental program called Second Chance Pell established by President Barack Obama in 2015. As of 2022, incarcerated students had earned more than 7,000 credentials through the program. For example, Georgetown University launched its Prison Scholars Program in 2018 to bring higher education to incarcerated students in Washington, D.C., and Maryland.
“Financial aid is one piece of this puzzle,” says Rachel Rotunda, director of government relations at the National Association of Student Financial Aid Administrators. “This is a big change for students, but it’s also a big change for institutions and really the whole higher ed prison education community.”
Submit FAFSA to qualify for a Pell Grant
To be considered for a Pell Grant, incarcerated students must fill out and submit the Free Application for Federal Student Aid (FAFSA).
Because correctional facilities may offer limited or no internet access, students may need to submit a paper copy of their FAFSA application to partner college representatives at their facility. Then the partner college will submit the FAFSA on the student’s behalf to the office of Federal Student Aid, which will evaluate the application and determine the student’s eligibility and grant amount.
“A lot gets facilitated through the college, which means that the prospective student likely already knows what college they’re going to be applying to,” Delaney says. “The other side to that is that it’s rare to see more than one college program at a single prison.”
Though incarcerated students can legally submit the FAFSA as early as July 1, they may need to wait until their facility’s education staff is ready to accept applications and a PEP course is slated to begin.
Incarcerated students shouldn’t worry about filing the FAFSA months ahead of time; they’ll likely need to submit the FAFSA around the time they’re slated to enroll in a PEP, Delaney says. Deadlines will vary by program.
“There tends to be a bit more of a condensed timeline for enrollment [in prisons] compared to the more community-based timeline,” Delaney adds.
Other grants and scholarships to pay for prison education programs
Incarcerated students are blocked from receiving federal student loans, which can provide undergraduates with up to $12,500 in funds each year that must eventually be paid back.
But if a Pell Grant award is not enough to cover the cost of a prison education program, students may turn to other funding sources. This may also be necessary if a student embarks on multiple degrees or takes extra time to finish a program because Pell Grants can be used for no more than six years.
And in many cases, the colleges running PEPs are putting their own resources into making them affordable, Rotunda says, “to ensure that they’re able to offer high-quality programming and to provide students the same level of support that they would be providing for any other student.”
Where to get answers to your questions
If you’re incarcerated and have questions about the FAFSA, Pell Grants or PEPs, you can reach out to the following resources:
A financial aid administrator or other education representative at your correctional facility:
Varies by correctional facility.
Send questions to the Education Department by mail. Address letters to:
U.S. Department of Education
c/o Prison Education Programs
400 Maryland Ave SW
Washington, DC 20202
If you have internet access, send questions to the Education Department by email:
Incarcerated students with defaulted student loans
If you’ve defaulted on student loans in the past, you can sign up for a temporary government program called Fresh Start. This program will return your loans to good standing, allowing you to submit the FAFSA and receive a Pell Grant while incarcerated.
If you now have a loan in default, you’ll need to send a letter to:
P.O. Box 5609
Greenville, TX 75403
In your letter, include your full name, Social Security number, date of birth and the following statement: “I am a confined or incarcerated individual. I would like to use Fresh Start to bring my loans back into good standing.”
Compared to banks, credit unions offer more individualized service. Plus, many of them also provide lower fees and higher rates on certain accounts. However, you must become a member of a credit union to utilize its services. In most cases, credit union membership is reserved for people who live, work, and worship in a certain area.
Some credit unions are also geared toward those in specific professions, like education or law or anyone who makes a donation or joins an organization. You’ll be pleased to learn that most credit unions have made their membership criteria more lenient and opened up their offerings to more types of people. In fact, many of them are quite easy to join.
14 Best Nationwide Credit Unions
While many credit unions are small and can only be found in select local areas, there are quite a few that are nationwide. If you travel frequently for work or pleasure, you might be in the market for nationwide credit unions.
Fortunately, most credit unions that have a nationwide presence are easy to join and offer a variety of benefits. To make your search for the best federal credit unions a bit easier, we’ve compiled this handy list.
1. Connexus Credit Union
Headquartered in Wisconsin, Connexus Credit Union is known as one of the largest credit unions in the U.S. It has over 400,000 credit union members across all 50 states. This is no surprise as it partners with well-known companies, such as Liberty Mutual Insurance, Kraft, Honeywell, and BMW.
To join, you’ll need to qualify through your employer that’s one of the credit union’s partner companies or donate at least $5 and open an account. As a credit union member, you can enjoy high APYs on checking accounts and other deposit accounts as well as low rates on mortgages, personal loans, and car loans.
The Xtraordinary Checking Account offers an APY of up to 1.75% on certain balances so you can make the most out of your hard earned money. White you don’t have to pay any fees, Connexus does require that you spend a certain amount on your debit card and sign up for eStatements to take advantage of the interest.
Furthermore, if you don’t use your checking account for more than 90 days and have a balance of $100 or less, you may have to pay an inactivity fee. Connexus has more than 5,600 shared branches and over 67,000 fee-free ATMs. Plus, the credit union offers higher rates and exclusive discounts throughout the year.
2. Navy Federal Credit Union
If you’re part of the military community, Navy Federal Credit Union should be on your radar. You can become a member if you have an active duty or reservist military member, worked for the Department of Defense, or are the immediate family member of someone eligible for membership. You’ll also be required to open a Navy Federal savings account and make a minimum deposit of $5.
The credit union has about 350 physical branches worldwide and many of them are near military bases in Maryland, Virginia, and California. There are also more than 30,000 fee-free ATMs. If you like to do your banking on your mobile device, you’ll be pleased to know that there is a highly rated app.
If you join Navy Federal Credit Union, you can enjoy no monthly fees or minimal fees on basic savings or youth savings accounts. NFCU also offers several checking accounts as well as competitive rates for share certificates, which are basically certificates of deposits (CDs).
3. Consumers Credit Union
Based in Illinois, Consumers Credit Union has 11 branches in the Chicago suburbs but opens its membership to anyone in the country. All members get access to more than 5,000 shared credit union branches and over 30,000 ATMs.
To join, simply pay $5 and fill out a short application form. Consumers offers some of the highest annual percentage yields or APYs on its rewards checking accounts. However, it requires that you make at least 12 debit card purchases per month, enroll in eDocuments, and have a monthly minimum of $500 in ACH deposits, direct deposits, and mobile check deposits.
If you prefer, you can choose from a no-frills checking account that doesn’t earn any interest. Other product offerings include four savings accounts, IRA certificates, and money market accounts.
4. Pentagon Federal Credit Union
Founded in 1935, PenFed Credit Union is known as one of the largest credit unions in the country. It serves more than 2.8 million members and has over $36.6 billion in assets. While this best credit union was originally only available to military members and their families, it eventually opened the doors to anyone. You can join as long as you deposit $5 into a savings account.
As a PenFed member, you can reap numerous benefits, including great rates on checking accounts, savings accounts, and money market certificates. In addition, you can sign up for early direct deposit and access more than 85,000 fee – free ATMs across the nation.
Even though PenFed is not part of a shared branch network, like other credit unions, it pays high rates, and has about 40 of its own branches throughout the U.S. There’s also a solid mobile app and customer phone support with evening and weekend hours.
5. SkyOne Federal Credit Union
SkyOne Federal Credit Union is one of the best credit unions and has a mission to help families become financially stable. It serves more than 40,000 members with $600 million in assets. Since its inception in 1949, SkyOne has offered a robust lineup of financial products, like interest-bearing checking accounts, money market accounts, credit cards, mortgages, and car loans.
Its share certificates come with exceptional rates that you might not find at other credit unions. SkyOne also has a free mobile banking app, a plethora of free educational tools, and a network of thousands of credit union branches for easy access.
The main downfall of this credit union is that it’s geared toward those who work in the air transportation industry so you might have a difficult time qualifying. Fortunately, membership has recently become a bit more lenient to accommodate more people.
6. Alliant Credit Union
Illinois-based Alliant Credit Union has more than 700,000 members across the country. Unlike other credit unions on this list, Alliant operates strictly online. If you like the idea of online and mobile banking, this credit union should definitely be on your radar. Its online accounts pay highly competitive interest rates that can be as much as 22X the national average.
Plus, you don’t have to worry about overdraft or ATM fees. You can also score up to $200 per month in ATM rebates. While its checking and savings accounts are the most popular products, Alliant also provides mortgages, auto loans, personal loans, and credit cards. At this time, Alliant does not offer any no-penalty or specialty CDs.
Customer service is available 24/7 and there’s also an online contact form you can use for less pressing questions or concerns. To become a member, join Foster Care to Success (FC2S). Once you do, Alliant will pay the $5 membership fee to the organization for you.
7. First Tech Federal Credit Union
First Tech Federal Credit Union made its debut in 1952 when it was first founded by employees of Hewlett-Packard and Tektronix. Today, the credit union partners with large companies, like Hewlett-Packard, Amazon, Microsoft, and Nike. You can join as long as you work at one of its partner firms or become a member of the Computer History Museum or Financial Fitness Association.
There are 33 branches, mainly in California, Washington and Oregon, but with several locations across Colorado, Georgia, Idaho, Massachusetts and Texas. As a member, you can enjoy in-person service at more than 5,600 Co-op Shared Branch locations in the U.S.and access your money at over 30,000 free ATMs.
It offers a long list of financial products, like checking accounts, savings accounts, credit cards, loans and investment accounts. Most of these offerings come with low minimum opening balance requirements and no monthly maintenance fees. First Tech Federal Credit Union is unique in that there are many business banking services that are rarely seen at other credit unions.
9. Bethpage Credit Union
While it is located in New York, Bethpage Credit Union opens its membership to anyone who makes a $5 payment, regardless of where they live. The credit union partners with hundreds of other credit unions to offer access to more than 5,000 branches and over 30,000 fee free ATMs. Virtual visits by phone and video appointment are also available.
Bethpage’s product lineup includes three checking accounts, four savings accounts, share certificates, and money market accounts. Believe it or not, even the free checking accounts pay interest. In addition to deposit accounts, the credit union provides mortgages, home equity lines of credit (HELOCs), car loans, auto refinancing, personal loans, retirement planning, health savings accounts, IRAs, and insurance.
You can access your accounts on the go with the handy mobile app, which includes convenient features, such as budgeting tools, online bill pay, and budgeting tools. Bethpage also offers access to a digital wallet and Zelle money transfers.
10. Latino Community Credit Union
Headquartered in North Carolina, Latino Community Credit Union has 15 branches in the state as well as 1,300 free ATMs through the CashPoints network. While it was originally built for the Latino community, you don’t have to be Hispanic or live in North Carolina to join. All you have to do is submit an application and pay a $10 membership fee.
Latino Community Credit Union is federally insured by the National Credit Union Administration (NCUA) and offers 24/7 customer service via phone. Compared to brick-and-mortar banks, it provides competitive interest rates and accounts with low minimum opening balance requirements.
If you’re part of the Hispanic community, you may also benefit from services in both Spanish and English as well as a financial literacy education program that’s focused on low-income Latino families and immigrants.
11. Boeing Employees’ Credit Union
If you’re a Boeing employee or live or work in Washington, Boeing Employees’ Credit Union can be a good fit. Just keep in mind that you’ll be required to open the Member Advantage Savings account, Member Share Savings account or Early Saver account.
You can enjoy nationwide access to more than 30,000 free ATMs, discounts on local events, such as sporting games and fairs and impressive rates on CDs, money markets and IRAs. Plus, there are no monthly service fees or minimum balance requirements.
Other noteworthy perks include free credit score monitoring, Zelle payments, online bill pay, and budgeting tools. You can find more than 50 physical branches in Washington as well as one location in North Charleston, South Carolina, for in-person banking.
12. Blue Federal Credit Union
Blue Federal Credit Union began as Warren Federal Credit Union and has been in business for more than 70 years. It offers more products than most credit unions, including checking accounts, savings accounts, credit cards, home loans, personal loans, and investment banking. This is great news if you’d like the diverse offerings that are widely seen at banks at lower price points.
In addition to a vast selection of financial products, Blue Federal Credit Union provides rates as high as 2x to 5x higher than the national average and access to thousands of partner credit unions across the nation. Thanks to the tiered membership rewards program, you can earn great rewards.
To join, donate to the Blue Foundation and open a Blue FCU Membership Share Savings account. Once you’re a member, you can bank online, visit branches in Colorado or Wyoming, or go to shared branches across the U.S.
13. Wings Financial Credit Union
Wings Financial Credit Union is worth exploring, even if you don’t work in the aviation industry. It has more than 26 branches in Minnesota, Michigan, Florida, Georgia, and Washington. Not only is it NCUA insured, it’s part of the Allpoint, CO-Op, and MoneyPass ATM networks that offer access to more than 80,000 free ATMs.
To become a member, you should live in work in an eligible location, work in the aviation industry, or make a $5 donation to Wings Financial Foundation, a non-profit organization that offers financial education programs and college scholarships.
The credit union pays high interest rates on many of its accounts and doesn’t charge monthly service fees. Depending on your goals, you can open the Wings Financial High-Yield Savings Account, Wings Financial Credit Union High-Yield Checking Account, Wings Financial Investment Money Market Account.
14. NASA Federal Credit Union
NASA Federal Credit Union dates back to 1949 when it first launched to serve NASA employees. Over time, the credit union has expanded and has more than 140,000 members to date. You can join even if you’re not affiliated with NASA as long as you become a member of the National Space Society.
Popular product offerings at NASA Federal Credit Union include the Premier Checking, Premier eChecking, Premier Preferred Checking, Shared and Special Savings account or Education Savings Account.
We can’t forget the Star Trek credit cards which offer 2x points for gas station purchases, and 3x points for purchases at StarTrek.com. Furthermore, if you spend $3,000 in the first 90 days, you get a bonus of 30,000 points. You may redeem your points for merchandise, gift cards, and more.
Credit Unions vs. Banks
If you’re used to banks or unfamiliar with credit unions, you might wonder how credit unions and banks compare. The truth is both types of financial institutions offers similar products, but there are several differences between them, including:
Financial Products
In general, banks offer more financial products and services than credit unions, especially large banks with a national presence. Credit unions primarily focus on checking accounts, savings accounts, and credit accounts. While loans and investment products are less common, they can still be found at some credit unions.
Rates and Fees
Banks tend to charge higher rates and fees than credit unions. However, online banks are usually more affordable and comparable to credit unions as they have lower overhead costs. It’s a good idea to shop around so you can compare rates and fees at a variety of financial institutions and hone in on the best option.
Technology
Credit unions typically are less technologically advanced than banks. The good news is more and more credit unions, especially those with a nationwide presence, are improving their technical offerings. Many of them offer mobile apps, online bill pay, and other advanced banking tools that were unheard of in the past.
Bottom Line
With this list of the best credit unions nationwide, you’re sure to find a credit union or two that checks all your boxes. Whether you’re new to credit unions or have used them for a while, these types of financial institutions can help you meet (or even exceed) your personal finance goals.
Credit Union FAQs
What is the difference between a bank and a credit union?
While a credit union is a member-owned, non-profit institution, a bank is a for-profit financial institution that is owned by shareholders or individuals. Credit unions are known for more personal service and flexibility. Whether you use a bank or credit union depends on your unique goals and priorities.
Do I have to join a credit union?
All credit unions may have certain membership requirements. Fortunately, many are lenient and let you join if you make a donation or pay a fee. Some credit unions will pay for you once you make a deposit into an account. Of course, some credit unions limit membership to people in certain geographical locations or professions.
Do credit unions have ATMs?
Yes! In many cases, credit unions partner with a large network of ATMs. This makes it easy for you to access your money regardless of where you are.
Are credit unions insured?
Reputable credit unions are insured by the National Credit Union Administration or NCUA, which is similar to the Federal Deposit Insurance Corporation or Federal Deposit Insurance Corp of traditional banks. This means if the credit union fails because of bankruptcy, for example, you’ll get your money back.
Are credit unions online?
While credit unions have a reputation for in-person branches with individualized service, online credit unions do exist. Several examples include Alliant Credit Union, Connexus Credit Union, and Quorum Federal Credit Union. If you like the idea of online banking, an online credit union might make sense.
What is the best nationwide credit union?
Not all nationwide credit unions are created equal. In fact, there are many options available with various pros and cons. To pinpoint the ideal online or local credit union for you, explore the institutions on this list and consider your priorities. Remember, you can join multiple credit unions if you’d like.
With the never-ending changes and challenges affecting the U.S. financial landscape, multiple community development entities are helping to counter some of their adverse effects by fostering community development initiatives.
Some examples include Community Development Financial Institutions (CDFIs) and Community Development (CD) Banks. These play a significant role in promoting economic growth and inclusion for underserved communities.
This article thoroughly explores CDFIs and the institutions that support CDFIs, outlining their significance, objectives, and how they meet capacity building initiative requirements. We also highlight the federal government’s involvement, explaining its role evolution and the numerous related economic development activities available to those who need them.
What is a Community Development Financial Institution (CDFI)?
Community Development Financial Institutions (CDFIs) are a type of financial institution that provides products and services to financially disadvantaged communities for economic development purposes.
They are essential and critical in promoting inclusion and economic growth to marginalized communities in urban and rural communities countrywide. Legislations like the Community Reinvestment Act help encourage these programs. However, the Community Reinvestment Act is not the only reason for their existence.
CDFI Certification
To become a CDFI, a financial institution must apply for a CDFI certification. This certification ensures that the institution can receive the right federal assistance resources and allows people to benefit from the CDFI fund’s programs.
How did the concept of CDFIs start?
The roots of Community Development Financial Institutions (CDFIs) extend to the 1880s, when minority-owned banks began serving economically disadvantaged communities. These organizations provided essential financial services to areas that mainstream financial institutions neglected or could not reach.
As the years progressed, new types of mission-driven financial institutions emerged. For example, the development of credit unions in the 1930s and 1940s offered alternatives to the traditional community bank that had limited services.
Moreover, new community development corporations emerged in the 1960s and 1970s, providing additional resources and support for underserved areas. These institutions gradually paved the way for the rise of nonprofit loan funds in the 1980s, establishing the groundwork for today’s modern CDFI model.
The Riegle Community Development and Regulatory Improvement Act of 1994 recognized the need to support the growing community development finance sector. With that in mind, it established the Community Development Financial Institutions Fund (CDFI Fund). This fund aimed to promote economic revitalization and community development in low-income areas by investing in and providing assistance to CDFIs.
Since its inception, the CDFI Fund played a substantial role in the growth and impact of CDFIs, enabling them to serve the financial needs of economically disadvantaged communities and contribute to their overall development and prosperity.
Types of CDFIs
Currently, multiple types of Community Development Financial Institutions (CDFIs) exist, each catering to the unique needs and challenges economically disadvantaged communities face. We explore their types and roles below.
Community Development Banks
Community Development Banks are for-profit, federal government supported and regulated financial institutions. These institutions have a board of directors that includes community representatives. CD banks provide affordable banking services, loans, and other financial products to economically distressed and underserved communities.
Operating in these communities creates jobs, improves infrastructure, and promotes economic growth. They also help increase access to capital for small businesses, including affordable housing projects and community service facilities.
Community Development Credit Unions
Community Development Credit Unions (CDCUs) are nonprofit financial cooperatives owned and controlled by their members. As is the case with traditional credit unions, they provide financial services such as savings accounts, checking accounts, and loans.
CDCUs only cater to low-income and underserved communities, offering affordable rates and financial education programs to promote inclusion and help people build credit and assets. The National Credit Union Administration (NCUA), an independent federal agency, regulates these credit unions.
Community Development Loan Funds
Community Development Loan Funds, or CDLFs, are nonprofit entities that finance community development projects by offering loans and technical assistance to marginalized communities. They facilitate access to affordable housing, promote small businesses, and help establish community service facilities to sustain growth. They also serve as an alternative source of capital for those who cannot access traditional bank financing services by offering flexible terms and underwriting criteria.
Community Development Venture Capital Funds
Community Development Venture Capital Funds offer equity and debt-with-equity investments to small and medium-sized businesses in economically distressed areas. They can be for-profit corporations or nonprofit entities.
By offering long-term capital, they help businesses grow, create jobs, and foster innovation. They also provide technical assistance, mentoring, and business development support to maintain the long-term success of their portfolio companies.
Microenterprise Development Loan Funds
Microenterprise Development Loan Funds are loan funds that provide small-scale loans, or microloans, to entrepreneurs and small businesses that might not qualify for traditional financing. They offer small capital amounts that range from hundreds to a few thousand. These loan funds help low-income people, women, and minority entrepreneurs who need smaller loan amounts and more flexible terms.
Community Development Financial Institution (CDFI) Consortia
CDFI Consortia are collaborative networks of CDFIs that pool resources, experience, and capital to increase their impact on community development services. They can access larger funding opportunities and share best practices to serve their target communities by working together. They can also provide joint technical assistance and support services, helping to strengthen individual CDFIs that are part of the network.
Understanding Community Development Financial Institutions
The main goal of CDFI fund programs is to provide affordable loans, community development banking services, financial help, and technical assistance to low-income communities. They foster economic development and empower small business owners, minorities, and marginalized communities by offering access to investment capital and other resources with fewer demands than traditional finance institutions.
CDFIs differ from traditional financial institutions because they focus on community development and serving minority communities. They also collaborate with religious institutions, community service organizations, and rely on federal funding and agencies to address the needs of their target populations.
What’s the federal government’s role in CDFIs?
The Federal Reserve Bank supports CDFIs through various initiatives, tax credits, and programs. One such program is the CDFI Fund, which the U.S. Department of the Treasury administers. The CDFI Fund provides financial, technical, and other resources to CDFIs, casting a wider net to help low income people and communities access their services.
In addition to the CDFI Fund, the Federal Reserve Bank supports CDFIs through programs and training initiatives such as:
Bank Enterprise Award Program
Capital Magnet Fund
CDFI Bond Guarantee Program
CDFI Equitable Recovery Program
CDFI Program
Rapid Response Program
Native Initiatives
New Markets Tax Credit Program
Small Dollar Loan Program
These initiatives by the Federal Reserve Bank provide financial incentives and resources for CDFIs and community development entities to invest in eligible community projects, promote economic growth, and create jobs.
How has that federal role changed over time?
The federal government’s role in supporting the CDFI industry changes over time to respond to the changing needs of disadvantaged communities and the growing recognition of the importance of financial inclusion.
Early efforts, for example, provided seed capital and technical assistance to establish and grow CDFIs. With the maturation and evolution of the industry, the government started focusing on building capacity, collaboration, and supporting innovative endeavors.
Recent changes emphasize leveraging private sector investments, regulatory relief, and encouraging partnerships between the CDFI industry and other financial institutions. Examples include minority depository institutions (MDIs) and mainstream banks.
CDFIs’ Role in Financial Inclusion
Financial inclusion is an essential part of CDFI initiatives. Access to affordable financial products and services helps bridge the gap between poor communities and mainstream financial institutions. CDFIs also promote financial knowledge, support small businesses, finance affordable housing activities, and facilitate economic development initiatives.
CDFIs also ensure that economically distressed communities can access essential community services facilities like healthcare centers, schools, and childcare. Their work helps contribute to these communities’ overall well-being and stability. It creates a solid foundation for long-term economic growth.
Business Model
CDFI business models are unique in combining traditional financial services with a strong emphasis on developing and positively impacting the communities they cater to.
They generate revenue by collecting interest and fees on loans, investments, and other financial products. However, they also rely on grants, donations, and especially government funding like the CDFI fund to support their operations.
CDFIs collaborate with organizations like government agencies, nonprofits, and private sector partners to attain their goals. Additionally, they leverage tax credits, guarantees, and other financial tools to attract more investment capital and support their lending activities.
CDFIs Provide Opportunity for All
CDFIs provide real opportunities by addressing the financial needs of underserved communities to help them succeed and promote their economic growth. To do this, they offer access to affordable financial products and services to communities that experienced systematic lockouts from these programs.
By emphasizing their needs and giving them more accessible and affordable ways to prosper, low-income individuals and businesses have access to essential financial tools. These tools were traditionally out of reach for mainstream financial institutions.
Moreover, CDFIs support small businesses owned by women, minorities, and individuals in economically distressed communities. By offering tailored financing solutions, technical assistance, and business planning resources, CDFIs help these entrepreneurs overcome barriers to entry, create jobs, and contribute to local economies.
Another significant aspect of CDFIs’ work is their focus on affordable housing and community development projects. They finance the construction and rehabilitation of affordable housing units and invest in community facilities like schools, healthcare facilities, and childcare. These are essential to the well-being and stability of low-income communities and help them worry less about factors beyond their control or that are too expensive to access otherwise.
CDFIs also promote financial education and empowerment by providing resources and training to help people develop financial literacy skills, manage their finances, and build assets. These initiatives contribute to breaking the cycle of poverty and promoting economic self-sufficiency.
By partnering with various stakeholders, such as government agencies, nonprofit organizations, and private sector partners, CDFIs leverage resources and expertise to maximize their impact. This creates a ripple effect that extends beyond the immediate recipients, fostering inclusive and resilient communities.
Types of CDFIs
Many community development financial institutions focus on addressing the needs of economically disadvantaged communities. These include community development banks, credit unions, loan funds, and venture capital funds.
Federal agencies like the Federal Deposit Insurance Corporation (FDIC) and the National Credit Union Administration (NCUA) regulate community development banks and credit unions. They offer various banking services, from deposit accounts to loans, catering to low-income communities.
Loan funds make affordable housing possible, support small businesses, and help community facilities. On the other hand, venture capital funds offer equity investments that support small businesses and startups in underserved communities.
“Newer” CDFI Resources
As community development financial institutions evolve, multiple resources and programs are emerging to support their growth and impact. Examples include:
CDFIs as Capital Plus Institutions
Sometimes, community development financial institutions are called “Capital Plus” institutions. This is because they provide investment capital, development services, technical assistance, and financial education to support the long-term success of their clients.
This approach allows community development financial institutions to significantly impact low-income and economically distressed communities, promoting economic opportunity and inclusion.
Emergency Capital Investment Program (ECIP)
The Emergency Capital Investment Program (ECIP) is a federal initiative that provides capital to CDFIs and MDIs to support their lending activities after the economic challenges caused by COVID-19. This program helps ensure that these institutions have the resources to continue providing essential financial services to underserved communities, small businesses, and minority-owned businesses during times of crisis.
Paycheck Protection Program Liquidity Facility (PPPLF)
The Paycheck Protection Program Liquidity Facility (PPPLF) is another federal initiative that supports the lending activities of CDFIs and other financial institutions participating in the Small Business Administration (SBA) Paycheck Protection Program (PPP). By providing liquidity to these institutions, the PPPLF enables them to continue offering loans to small businesses needing financial assistance during challenging economic times.
CDFI Rapid Response Program
The Rapid Response Program from the CDFI Fund provides immediate financial assistance during crises or natural disasters. CDFIs can quickly access funds for disaster recovery, emergency relief efforts, and other needs, serving as “financial first responders” for the communities they support.
These newer resources and programs demonstrate how the federal government, private sector, and other stakeholders support the work of CDFIs and promote financial inclusion and economic opportunity. By leveraging these resources, CDFIs can better address the needs of low-income communities nationwide and foster economic development in urban and rural communities.
Affectionately known as the Land of Enchantment, New Mexico boasts a captivating blend of history, scenery and academic prowess.
Join us on a journey through some of the best college towns in New Mexico, where arts, academics and awe-inspiring scenery meet to make these destinations ideal for students and lifetime locals alike. From the bustling streets of Albuquerque to the quaint charm of Española, there’s something for everyone in these college towns.
Las Cruces is nestled in the picturesque Mesilla Valley, surrounded by the rugged Organ Mountains. Home to New Mexico State University, Las Cruces is a lively college town with a thriving arts scene, fantastic food and an abundance of outdoor activities. New Mexico State University is a comprehensive research institution that offers a variety of academic programs, as well as NCAA Division I athletics, making it an attractive destination for students seeking a well-rounded college experience in and out of the classroom.
In Las Cruces, you’ll find a vibrant downtown area that hosts a weekly farmers’ market that features over 300 local vendors selling fresh produce, handmade crafts and delicious foods. You can also enjoy the city’s many museums, including the New Mexico Farm & Ranch Heritage Museum or the Zuhl Museum, which showcases an impressive collection of petrified wood and fossils.
For those who crave outdoor adventure, the nearby Organ Mountains-Desert Peaks National Monument offers hiking, rock climbing and a truly unique opportunity to connect with the majesty of Mother Nature.
As the largest city in New Mexico, Albuquerque boasts a bustling urban center that combines rich cultural heritage with modern amenities. The University of New Mexico, located in the heart of the city, is a top-tier research institution with a diverse student body and an extensive range of academic programs. The college town atmosphere is evident throughout the city, with trendy coffee shops, eclectic boutiques and a thriving music scene.
One of the most iconic sights in Albuquerque is the Sandia Mountains, which provide a stunning backdrop for the city and are perfect for outdoor enthusiasts. The Sandia Peak Tramway, the world’s third-longest aerial tramway, offers breathtaking views of the surrounding landscape, as well as hiking and skiing opportunities. The city’s historic Old Town district is another must-see, with its narrow cobblestone streets and adobe buildings. For a taste of Albuquerque’s unique culinary scene, sample some green chile dishes or enjoy a craft beer from one of the city’s many breweries, including the locally-loved La Cumbre Brewing Company.
Located in the southeastern corner of New Mexico, Hobbs is a thriving community with a rich history in the oil industry. This seemingly unassuming town is home to the University of the Southwest (USW) and New Mexico Junior College (NMJC), both of which contribute to the area’s vibrant college scene. USW is a private, four-year institution known for its strong business and education programs, while NMJC is a community college offering a wide range of associate degrees and certifications.
Despite its oil town roots, Hobbs has a surprisingly diverse culture, with art galleries, theaters and museums packed into the city limits. The Western Heritage Museum and Lea County Cowboy Hall of Fame showcase the area’s fascinating history and cowboy culture. The city’s Parks and Recreation Department maintains several beautiful parks, including Harry McAdams Park, which features a lake, walking trails and picnic areas.
As the picturesque capital of New Mexico, Santa Fe is known for its rich history, thriving arts scene and stunning southwestern architecture. This enchanting city is home to several higher education institutions, including St. John’s College, Santa Fe Community College and the Institute of American Indian Arts, all of which contribute to the lively college town atmosphere. St. John’s College is a liberal arts institution that follows a unique, Great Books-based curriculum, while the Institute of American Indian Arts is a renowned fine arts college dedicated to the study and preservation of Native American art and culture.
Santa Fe’s Plaza, a historic central square, is a hub of activity, lined with art galleries, museums and unique eateries. The city’s rich cultural heritage is evident in its architecture, with the iconic adobe-style buildings and the beautiful Cathedral Basilica of St. Francis of Assisi. The Georgia O’Keeffe Museum, dedicated to the life and work of the famous American artist, is a must-visit for art enthusiasts.
Outdoorsy types will appreciate the nearby Sangre de Cristo Mountains, which provide space for hiking, skiing and soaking up the breathtaking views of the surrounding landscape.
Nestled in the picturesque Española Valley, the quaint city of Española is a hidden gem among the college towns in New Mexico. Northern New Mexico College is the heart of this growing college community, offering a diverse range of academic programs, including engineering, environmental science and fine arts. The college’s intimate campus setting and close-knit community provide students with a supportive and nurturing environment to learn their crafts and develop their personalities.
Española’s rich cultural heritage is evident in its many historical sites, including the Misión Museum, which showcases artifacts and exhibits related to the area’s Native American and Spanish history. The nearby Puye Cliff Dwellings offer a fascinating glimpse into the ancestral homes of the Pueblo people. Outdoor enthusiasts can take advantage of the nearby Carson National Forest, which provides ample opportunities for hiking, mountain biking, camping and more.
Located in eastern New Mexico, Portales is a charming college town with a strong agricultural heritage and a passion for the arts. Eastern New Mexico University, the state’s third-largest university, is the center of this thriving college community. Eastern New Mexico University is known for its hands-on approach and top-tier programs in agriculture, fine arts and education. The university’s commitment to student success and its strong ties to the local community make it an attractive choice for those seeking a close-knit college experience.
Portales’ vibrant arts scene is evident in its many galleries, theaters and community events. The town’s annual Peanut Valley Festival celebrates the area’s agricultural heritage with live music, food and crafts. The Blackwater Draw Museum and Archaeological Site provides a fascinating insight into the region’s prehistoric past.
For nature lovers, the nearby Oasis State Park provides space for fishing, picnicking and soaking up the New Mexico sun in a serene and peaceful setting.
Your next apartment is in a New Mexico college town
From bustling cities to charming small towns, the college towns in New Mexico offer a diverse array of experiences for students, visitors and lifetime residents alike. Each of these towns boasts a unique blend of culture, history and natural beauty, as well as top-notch educational institutions that contribute to their vibrant and dynamic communities.
Whether you’re exploring the historic streets of Santa Fe or taking in the breathtaking views of the Organ Mountains in Las Cruces, you’re sure to find something enchanting about the best college towns in New Mexico.