New NYC Program Offers Loans for Day-Care Payments

New York City Council Announces Childcare Loan Initiative (HR.BLR.com)

The Middle Class Child Care Loan Initiative, the first in the nation program of its type, was announced in a press release by the New York City Council to provide financial assistance to parents and guardians struggling to afford quality child care. The initiative pilot program will provide financial assistance to 40 families in its first year.

“Early childhood education is one of the most important investments a parent can make,” said Council Speaker Christine C. Quinn. “But too often, quality child care is out of reach for middle class families.”

New York City has one of the highest childcare costs in the entire country. CBS New York reports that daycare costs average $13,000 a year New York City families. The new program is targeted at middle class families not eligible for other subsidies.

Although the Administration for Children’s Services offers subsidized child care to families that fall below 275 percent of the federal poverty level, there were no programs in place to help middle class families. The pilot program will offer 6 percent loans of up to $11,000 to parents with children between the ages of two and four.