HARTFORD, Conn. – Eleven credit unions have agreed so far to join a new student loan program launched by credit unions in partnership with Gov. Jodi Rell, the Governor’s office said yesterday.
Credit unions will begin lending Dec. 8 for the new program, which will offer loans 20% guaranteed by the state to in-state students at colleges and universities. The rate for students deferring payment will be 6% and for those not deferring payment 5.75%.
"The Governor has been holding a series of meetings with the state’s community banks, which have agreed to expand their lending to small businesses and consumers, and with credit unions, who have agreed on the student loan program," said Christopher Cooper, a spokesman for Gov. Rell. He noted that banks and credit unions in Connecticut have been able to avoid the worst of the credit crisis and are in good condition to expand lending.
The Connecticut CU League, which coordinated the credit unions’ participation, has agreed to provide some underwriting guidelines on the loans and to administer and track the program.
The credit unions participating in the student loan program are: 360 FCU, American Eagle FCU, Capitol Region FCU, Charter Oak FCU, Connecticut State Employees CU, Connex CU, General Electric CU, Dutch Point CU, Ledge Light FCU, Nutmeg State FCU and Sikorsky Financial CU.
