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Connecticut governor signs CU student loan act
MERIDEN, Conn. (7/24/09)--At a bill-signing ceremony Wednesday at Seasons FCU, Middletown, Conn., Gov. M. Jodi Rell signed the credit union-backed bill for a Student Loan Guarantee Program Reserve Fund.
Connecticut Gov. M. Jodi Rell and Credit Union League of Connecticut President/CEO Tony Emerson posed after Rell signed credit unions' student loan bill into law Wednesday . (Photo provided by Credit Union League of Connecticut)
Twenty-four Connecticut credit unions participate in the program, which offers low interest rates to students who live or go to school in the state and who may not qualify for traditional loans, or who already have used their resources and are having difficulty funding tuition. Rell said that in light of credit unions taking on the risk, the Connecticut Health and Education Facilities Authority (CHEFA) would provide 20% guarantees for the loans. “Credit unions remain healthy in the current economy due to key differences in our structure,” said Tony Emerson, president/CEO of the Credit Union League of Connecticut. "As cooperative financial institutions, credit unions are not reliant upon the capital markets for funding, but are instead funded through member deposits. Therefore, as the credit crunch hit much of the economy, credit unions by contrast have money that they are ready to lend out to their members," Emerson said. "In addition, it is our mission to help people make credit unions an excellent choice for a program such as Governor Rell’s Student Loan Program,” he added.


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