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| College Assistance
Loan Program |
| General |
| A number of credit union members have
requested assistance with defraying the cost of sending
a student to college. Specifically, the request has
been made to cover tuition, room and board and other
fee costs. I am recommending that we structure a program
that will cover most, if not all, of the basic costs. |
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| Program Specifics
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- Maximum loan per school year will
be $7,000.00
- Interest rate 9% per annum
- Total number of payments –
12
- The distribution of the loan proceeds
will be as follows:
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- One half of the loan will be disbursed
upon receipt of the college fee schedule invoice.
Not more than 10% over the total invoice total will
be disbursed if the total cost is less than half
of the amount borrowed.
- One half of the proceeds will
be held in shares until a fee schedule invoice is
presented for the second semester. The distribution
procedure will be as outlined for the first semester.
Normal dividend rates will be paid on the amount
held.
- If a student fails to enter school
for the second semester, the balance in the share
account will be credited to the loan balance.
- Checks will be made to the college/university
for all basic fees
- Eligibility will be limited to
dependent children
- Exceptions to this loan must be
approved by the Board of Directors
- Withdrawals from the tuition/fee
account will not be allowed if the loan is delinquent.
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| The amount, up to the $7,000.00 maximum,
a member can borrow will depend on the member’s credit
rating and ability to repay the principal and interest back
in 12 payments. In the case of married couples, both husband
and wife will be required to sign the note. |
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