WASHINGTON–With the federal government set to run out of funding on Sept. 30, credit unions are offering various forms of assistance, even as this shutdown may be different from all those that have preceded it—the Trump administration has threatened “mass firings” of federal workers.
As the CU Daily reported here, the threat of such firings marks a significant departure from past shutdowns, where the standard practice was to temporarily furlough non-essential workers.
The CU Daily contacted NCUA for comment but the agency has not yet responded.
Among the credit unions offering to help members who may miss paychecks:
Chantilly, Va.-based Justice FCU is offering a Special Assistance Loan to new and existing members in good standing up to their net pay for one month. A pay stub is required, and there is a minimum loan amount of $500. The loan features an APR of 5.99% over 12 months and members may opt to defer their first Special Assistance Loan payment for up to 60 days, with interest continuing to accrue.
Members in good standing may also request to defer a consumer loan or credit card payment up to 30 days with interest continuing to accrue.
Justice FCU said members may also have access to free, confidential financial counseling from GreenPath Financial Wellness.
Democracy Federal is offering a number of different relief programs. Those include:
- Loan Extension/Payment Deferment: Existing loan holders may receive a loan extension for up to 90 days.
- Short-Term Loan: Current and potential members may apply for a short-term loan for up to six months with rates as low as 0.00%.
- Free Financial Counseling Services: All members qualify to receive free financial counseling from its certified financial experts to help with budgeting, credit and debt management.
U.S. Senate Federal Credit Union
Fittingly, U.S. Senate FCU is offering a Government Shutdown Relief Loan Program members who are in good standing, have not caused a loss, are no more than 30 days delinquent and who are not currently in bankruptcy can qualify for the special loan program.
The 90-day loan has a 0.00% APR for 90 days on loan amounts up to $5,000, with full payment due at the end of the term.
be due to be paid in full. The program is limited to one loan per member.
USSFCU said government contractors are not eligible for the program.
The world’s largest credit union is offering a Government Shutdown Loan Program with a 0% APR and loan amounts based on the member’s regular direct deposit of pay processed into (a) Navy Federal
deposit account(s) immediately before the failure to pay.
To be considered for the loan program, a member must register with Navy Federal, meet the eligibility requirements, and agree to the terms and conditions.
NIH FCU is offering a Special Assistance for Federal Employees (S.A.F.E.) program. All federal government employees with NIH who experience a disruption in pay are eligible for a S.A.F.E. Closed-End Loan, which offers amounts up to $10,000 for 36 months with rates as low as 7.49% APR for the balance of the loan term
In Massachusetts, Hanscom FCU, which was chartered to serve the military base of the same name, is offering furloughed government employees may be eligible for a LifeLine loan, Skip-a-Pay, or waived certificate fees for early withdrawals.
Members 1st Federal Credit Union
In Enola, Penn., Members 1st Federal Credit Union said it has put relief programs in place that include:
- Payment-deferred personal loans, providing six months of breathing room.
- A no-fee skip-a-payment option on existing loans.
- Loan extensions and financial assistance loans.
- Financial education services and support, including one on one counseling through GreenPath.
Help From the Trade Groups
The credit union trade groups are offering resources to credit unions:
- America’s Credit Unions has related resources available here.
- The Defense Credit Union Council has related resources available here.
