Governor M. Jodi Rell announced that beginning today, several credit unions across Connecticut will begin accepting applications for new low-interest student loans.
The Governor said as much as $17.5 million in loans has been committed under a new program she established last month with the Credit Union League of Connecticut. The loans are expected to be offered at rates of between 5.75 percent and 6 percent, significantly below the 6.99 percentage rate currently offered by the Connecticut Higher Education Supplemental Loan Authority (CHESLA).
"The national economic recession is hitting home on all levels and families across Connecticut are faced with the difficult decisions on what expenses to cut. Under this program, college tuition does not have to be one of them," Governor Rell said.
Participating credit unions include:
360 Federal Credit Union (FCU) – Offices in Windsor Locks and Enfield
· Achieve Financial CU - Offices in New Britain, Meriden, Berlin, Southington
· American Eagle FCU - Offices in Bloomfield, Cromwell East Hartford, Enfield, Farmington, Glastonbury, Manchester, Plainville, Vernon
· Capital Region FCU – Office in Bloomfield
Charter Oak FCU - Offices in Groton, Killingly, Brooklyn and Putnam
Connecticut State Employees CU
Dutch Point CU - Offices in Wethersfield, Berlin, Waterford, Niantic, Windsor, Newington.
General Electric CU - Offices in Milford, Bridgeport, Fairfield, North Haven, Norwalk, Shelton, Stamford
Hartford Healthcare FCU
Ledge Light FCU - Offices in Groton and New London
Members CU - Office in Stamford
Mutual Security CU – Offices in Brookfield, Cheshire, Danbury, Norwalk, Stratford, Watertown, Wilton
Nutmeg State FCU Offices in Glastonbury, Rocky Hill, Manchester and New Britain
Sikorsky Financial CU in Stratford
Waterbury CT Teachers FCU
Under the new student loan program, institutions offering 6 percent loans will be able to defer interest payments for one year, and credit unions offering 5.75 percent loans would not defer interest payments. The Governor said the Connecticut Health and Education Facilities Authority (CHEFA) would provide 20 percent loan guarantees on the loans.
"These loans will be made to students who may not qualify for traditional loans or who may have already used up all their resources and are now having trouble paying for college costs," Governor Rell said.
On November 18, Governor Rell met with top officials from Connecticut’s credit unions to discuss the state’s economic situation and to propose a new partnership to provide students with access to higher education through a new student loan program.
For more information, contact the Credit Union League of Connecticut: http://www.culct.coop/ctcua/ or call 203-265-5657.