MADISON, Wis. (7/24/13)--Federal budget limitations in the U.S. are leading to many employee furloughs this summer. Credit unions are responding to requests from members for help with lighter paychecks.
Robins FCU in Warner Robins, Ga., with assets of $1.74 billion, is offering members who work at the Robins Air Force Base several services to help them through their furlough periods. They include special furlough loans, refinancing car loans, home mortgage-loan assistance, a skip-a-payment option and extending terms of current loans (The Telegraph July 18).
Because federal budget cuts resulted in 11-week furlough period that began last week, employees at the base are being furloughed one day per week through September, which cuts their pay for that period by 20%, The Telegraph said.
CBC FCU, a $405 million asset, Oxnard, Calif.-based credit union, is providing a line of credit for about 5,000 civilian employees at Naval Base Ventura County to help them get through furloughs (Ventura County Star July 12).
The credit line is available for up to two months of applicants' net pay, Patrick Miller, CBC FCU president/CEO, told the Star. If the line of credit is repaid by the end of 2014, financing is interest free. After that it converts to 9.9% interest, he added.
Other sequestration-aid programs by credit unions include: