CDFIs Can Help Native Populations Moving to Cities

Low-income students are always looking for ways to finance their education. A new system using “human capital contracts” to pay for higher education isn’t as scary as it sounds.

54 million people in the United States, and 4.5 billion globally, have no credit to their name - making it nearly impossible for them to buy homes, apply for jobs and receive loans. Investors and lenders make an effort to help those with 'invisible credit' scores in financing essentials like homes or cars.

Most insurance companies avoid insuring poor farmers because the transaction costs are too high, but a non-profit in Kenya created a sustainable way to cover them.

Government benefits to aid the poor are frequently left unclaimed, leaving children hungry, young people unable to finish school, and opportunities for stable housing and preventative health care unused. New York City-based program Single Stop connects people to benefits for which they may be eligible. Importantly, Single Stop has served community colleges where disadvantaged students can use the assistance to help get through school.

Neighborhood Trust is a New York-based nonprofit offering financial advice to individuals experiencing economic hardships. Providing hands-on coaching, counselors are able to inform their clients about financial options they may have otherwise not known about like college financial aid or child care tax credits.

When you don’t live in a city, if you don’t have a car, you don’t have a job. But car payments can eat up a salary quickly - a New England program offers low-cost car loans to people who need them most.

Alleys in Seattle were once places of illicit, illegal, and unsanitary activity. The International Sustainability Institute in Seattle began organizing music and art events to bring in people, which, in turn, cleaned-up the crime and garbage. As an urban development strategy, adjacent vacant storefronts re-opened for business and beautification could be seen in new gardens.

African American boys were being treated less-than-equally by the Oakland Unified School District – a change of culture was implemented and the playing field leveled. Now, Minnesota is looking to adopt the same system that was started in Oakland by creating schools that are exclusively for African American males in hopes to help them reach higher standards of achievement.

Boston professors visit countries and homes of foreign students to better understand their culture and gain insights about how to better teach them. The goal is to reach across cultural divides to help a big part of the student population — emigres from faraway lands — that is plagued with low standardized test scores and high dropout rates. Accompanying photojournalism: http://www.bostonglobe.com/news/bigpicture/2015/09/12/seeking-cultural-connections/L3mIQAQM3v9YT9A2K4JliL/story.html

This is a column on an important new development program in use in at least 40 developing countries: give the poor cash payments, contingent on their use of health clinics and their children’s school attendance, to help break the cycle of poverty.