WASHINGTON Credit unions continue to roll out offerings to help members affected by the $85 billion in government cuts that kicked in last week as a part of sequestration.
Among the efforts:
* For members whose paychecks are affected by federal government cuts, Hanscom FCU, at Hanscom Air Force Base in Massachusetts, is offering access to a 0% line of credit for 30 days, equal to that member’s net payroll, up to $5,000. Known as the “Life Line Loan,” the offering is attached to the member’s checking account and is meant to provide funds to cover ATM withdrawals, checks and debit card purchases. The CU is waiving fees on early withdrawals on term share certificates for members affected by the sequester, as well as offering free financial counseling.
* At JetStream FCU in Miami Lakes, Fla., qualifying members can receive a 0% “Furlough Relief” loan of up to $2,000. Payments are not due for 60 days, but if the loan is not repaid within that time it converts to a 12-month signature loan with an 8.99% rate. JetStream FCU’s field of membership includes FAA employees.
* Portsmouth, N.H.’s Service CU is offering a 0% Sequestration Loan of up to $6,000. The loan can be repaid over 18 months, and no payments are due for the first 90 days for members who have direct deposit at the credit union. Members without direct deposit and non-members wishing to join the credit union can access the same offer including loan amount and repayment terms at a 4.9% rate. Furloughed members may defer payments on current loans for 90 days and withdraw funds from CDs without paying a penalty. Financial counseling also is available, along with some of Service CU’s other standard offerings, including an early payday program, a moderate income earners program, ATM rebates and more.
In addition to military members, Service CU serves civilian personnel within the Department of Defense, a group that was expected to be heavily affected by layoffs and furloughs as a result of sequestration.
