HARTFORD, Conn. – More than 20 credit unions have pledged $17.5 million to fund a new student loan program for Connecticut students.
The new program, signed into law by Gov. Jodi Rell yesterday, offers interest rates at 5.75% or 6%, with students paying the higher rate allowed to defer interest payments for one year. The loans will be 20% guaranteed by the Connecticut Health and Education Facilities Authority.
The loans will be offered to students who may not qualify for traditional loans or already used all of their resources and are having a hard time funding tuition.
The CU League of Connecticut will administer the student loan program with state education authority. The program will be open to all students who live or go to school in Connecticut. The funds will not be pooled and the individual credit unions will allocate their own funds. Credit unions must allocate a minimum of $100,000 of their funds to participate in the loan program, which will run for one-year with the possibility of extending that period, based on demand and available resources.
Currently there are 21credit unions who are participating: Achieve Financial CU, American Eagle FCU, Capitol Region FCU, Charter Oak FCU, Connecticut State Employees CU, Dutch Point CU, FranklinTrust FCU, General Electric CU, Hartford Healthcare FCU, Ledge Light FCU, Members CU, MiddConn FCU, Mutual Security CU, New Haven County CU,Northwest Hills CU, 360 FCU, Seasons FCU, Sikorsky Financial CU, United Shoreline FCU and WaterburyCT Teachers FCU.
