WASHINGTON As the deadline for sequestration passed and federal agencies began to prepare for $85 billion in automatic spending cuts this week, credit unions across the country continue to put in place programs designed to aid members affected by the cuts.
At Cabrillo CU in San Diego, members facing furloughs and layoffs can apply for a 0% Sequestration Assistance Loan (SAL) of up to $2,500 to supplement reduced payrolls. The loan is available as long as sequestration is in effect. The CU noted that even if sequestration only lasts a few days, members will not have to begin paying the loan back until June 10.
Maryland’s Aberdeen Proving Ground FCU is offering loan assistance, expedited approvals, payment deferrals, no-cost financial guidance and 24/7 educational resources for any members affected by the cuts.
Andrews FCU is offering members a Sequestration Bridge Loan of up to $5,000 at 0% for 90 days, after which standard APR applies. The CU also is offering flexible terms and payment options to help members manage loss of income. Other standard options including signature loans, secured loans and HELOCs also are available. AFCU is directing members to its website for assistance with money management.
Randolph-Brooks FCU, based in Live Oak, Texas, is allowing members to withdraw from certificates before their maturity date without incurring any early withdrawal penalties. The CU has rolled out low-rate loans to help bridge the gap between sequestration-mandated cuts and members’ usual pay. First payments on those loans will not be due until December, “giving members a chance to use their funds gradually as a step down’ resource as they adjust to the changes created by sequestration,” the CU said.
State Department FCU will offer furloughed employees a Special Relief Credit Card, a Visa Platinum card offering 0% interest for the first six months. Cardholders still will be able to participate in the Flexpoint rewards program, and the card has no annual fee. Free financial coaching also is available, and the CU’s website allows members to use FinanceWorks, an online tool that helps track spending and teaches budgeting skills. SDFCU is offering payment assistance on a case-by-case basis to members with loans at the credit union.
