RALEIGH, N.C. (6/4/13)--State Employees' CU has purchased $7 million in loans from the North Carolina State Education Assistance Authority (NCSEAA) to provide financial support to state college students.
The purchase of student loans through NCSEAA's Loan Rehabilitation Program provides funds to NCSEAA that are used to assist other student loan borrowers and aid in the development of educational offerings.
"The Loan Rehabilitation Program continues to be successful in giving student loan borrowers an opportunity to succeed," said Mike Lord, chief financial officer of $26 billion asset SECU. "Sometimes success requires a second chance and through the purchase of these federally insured student loans, SECU is helping NCSEAA give more opportunities to those in need.
"Investing in our state's students is a good thing and our partnership with NCSEAA is truly beneficial for all involved," Lord added.
Authorized under federal law, the Loan Rehabilitation Program was put in place to help student borrowers who defaulted on Federal Family Education Loans earn a second chance to repay the loans, repair their credit histories and improve their lives.
Program participants must meet certain qualifications, including remittance of nine consecutive voluntary payments at an amount the borrower can sustain in the future. Upon qualifying, new repayment terms may be available, eligibility for federal and state financial aid is reinstated and a defaulted loan status is removed from the student's credit record.
The Credit Union National Association's recent Student Borrowing Survey found that half of high school seniors have no idea what college will cost (News Now April 29). The survey has been noted by bankruptcy lawyers, accountants, economic education groups, and national media who are citing CUNA's results as one more reason for financial education.