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Illinois student loan program attracts 14 CUs
NAPERVILLE, Ill. (7/16/09)--Fourteen Illinois-based credit unions will invest nearly $105 million in Illinois State Assistance Commission (ISAC)-issued securities to finance low-interest, federally secured student loans, announced the Illinois Credit Union League and ISAC Wednesday.
Mark Spenny, CEO of Peoria, Ill.-based Citzens Equity First CU (CEFCU) addressed the media during a press conference announcing the availability of $105 million in student loans from 14 credit unions in the state. (Photo provided by the Illinois Credit Union League)
The loans for Illinois students and their families will be offered through the Federal Family Education Loan Program (FFELP). They are part of the Illinois Designated Account Purchase Program (IDAPP). The announcement was made at a press conference hosted by Peoria-based Citizens Equity First CU (CEFCU) on the Illinois Central College campus in East Peoria. "Our partner credit unions and the Illinois Credit Union League have really stepped up to make sure Illinois students have access to federally backed, low-rate student loans," said ISAC Executive Director Andrew Davis, who noted there is "plenty of money to lend" students. The league played a critical role in building support for the program from credit unions. "Receiving a quality education earning a college diploma is crucial for today's students," said Dan Plauda, league president/CEO. "Credit unions are proud to partner with ISAC and invest in our state's future work force." The liquidity crunch, higher tuition costs and federal policy changes that cut lender profits have disrupted student lending programs in some states. A number of banks--including U.S. Bank, the sixth largest FFELP lender with $2.3 billion in loan volume last year--have exited the student-lending arena the past two years. "Thanks to the credit unions' support of ISAC's FFELP participation, we can continue to provide student loans to those in need while serving our mission of offering Illinois students and parents services such as college access programs, financial literacy education and loan delinquency and default prevention," Davis said. Davis said more information can be found at the IDAAP.com website. Financing for the agreement is subject to approval by the ISAC Commissioners and by the credit unions' boards at their respective meetings.
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