Press Release  Innovative Financial Literacy Initiatives & Debt Resolution Education

Boston, Massachusetts — In June, the Massachusetts Division of Banks (Division) launched a pilot program which awarded $2,254,361 in grants to 18 organizations to fund financial literacy and debt resolution education programs. The intent of the funding is to empower all residents of the Commonwealth with the knowledge they need to obtain and keep a home, save and pay for a college education, and better understand maintaining their overall finances.

These grants are supported by the Division of Banks Mortgage Loan Settlement Trust which was established to accept settlement funds related to mortgage loan-servicing and foreclosure abuses.

The Division accepted funding proposals for two-year pilot projects from a diverse group of community organizations across the Commonwealth, including organizations operating in Gateway communities. These projects will render one or a combination of the following services:

• Financial Literacy Services for Tenants residing in the Commonwealth of Massachusetts
• Financial Literacy Education for First-Time Homebuyers
• Financial Literacy Education for Reverse Mortgage applicants and borrowers
• Financial Literacy Services for Youth in the Commonwealth 
• Mortgage and debt servicing counseling for:
  • Mortgage borrowers with conventional mortgage loans in need of budgeting and debt counseling assistance.
  • Mortgage borrowers with reverse mortgages in need of budgeting and debt counseling assistance.
  • College bound high school students in need of financial counseling prior to processing college loans.
  • Active college students seeking financial literacy, credit repair, and budgeting assistance.

In total, eighteen awards were made to various nonprofits serving Massachusetts consumers with challenging financial needs.   

“We were very pleased to see such a wide representation of community groups represented by the applications. The COVID-19 pandemic has had a significant impact on the financial health of numerous consumers in the Commonwealth—further illuminating the need for widespread financial education. We hope these funds will go a long way to fostering enhanced financial awareness and debt management skills going forward,” said Commissioner Mary L. Gallagher.

The following organizations are the grant recipients for this pilot program:

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