AUBURN HILLS, Mich. -
For its part in the Career Transition Assistance Program, the $156-million CCF will provide an estimated $750,000 in below-market, unsecured educational loans to help displaced workers acquire new or advanced job skills.
"CCF is pleased to provide our members with an affordable means to update their skills and education," said Heidi Kassab, president of CCF. "We understand the devastating effects a job loss can have on families, and we want to empower our members to take the necessary steps to begin a new career path."
Since its launch last October, 37 credit unions have committed nearly $40 million to the project. The State of Michigan joined the effort by committing $1.5 million to reimburse students for up to $500 per semester to cover book expenses plus another $200,000 for career guidance, counseling and placement services at Michigan community colleges.
DFCU Financial, the anchor institution of the program, has committed $10 million and booked 41 loans. Many of its members have been or will be affected by Ford Motor Co.'s announced last September that it would offer buyouts or early retirement packages to 75,000 North American employees and lay off another 10,000 salaried employees by the end of next year. The move was similar to cuts made earlier this year by larger rival General Motors Corp. At GM, 34,410 hourly workers accepted buyouts or early retirement offers. Another 2,000 salaried workers were laid off.
"When DFCU Financial learned about these sweeping cuts and realized that many of our members may be adversely affected, we just had to do something,'' said Mark Shobe, CEO of the $1.8-billion DFCU last fall. "Our history began at Ford and our success is linked to Ford so this is our way of trying to help these and other workers who are struggling at this time."
The Michigan Credit Union League, which partnered with DFCU to expand the program statewide, said 69 loans have been issued thus far.
"While credit unions are an integral part of Michigan's economy through good times and bad, the current economic climate challenges us to do even more," MCUL CEO David Adams told the CU Journal during a press conference last October announcing the program.
A highlight of the CTAP is that there are no loan payments or interest accrued for 24 months from the date of the first loan disbursement. CCF is offering a maximum loan assistance of $10,000 per member and the fixed rate loan has an interest rate set at .50% lower than the standard Stafford loan rate. Eligible members should have at least 2 years of prior full-time work experience and be recently displaced or in the process of being displaced from the workforce.
