Furlough Loan Program Offered

SchoolsFirst to Offer Personal Loans to Help Faculty/Staff

October 14, 2009

By Valerie Orleans

SchoolsFirst Federal Credit Union will be offering Cal State Fullerton faculty and staff low interest rate personal loans to help with the impact of state employee furloughs.

“At Academic Affairs/Academic Senate retreat, a faculty member asked President Milton A. Gordon if it would be possible to approach SchoolsFirst to inquire about a special loan program, in light of the furloughs,” said Scott Hewitt, president of Cal State Fullerton’s Academic Senate.

President Gordon met with Rudy Hanley, president and CEO of SchoolsFirst Federal Credit Union, and they developed a special CSUF Furlough Loan Program. It is believed this is the first program of its kind among CSU campuses.

“President Gordon was looking for ways to address the needs of faculty and staff who are taking what amounts to a 10 percent salary cut,” said Hanley. “We appreciate our long-standing relationship with Cal State Fullerton and want to do what we can to help employees who may be in a difficult financial situation because of the furloughs.”

The program will allow CSUF faculty and staff, affected by the furlough, to receive up to 10 percent of their gross annual payment (with a maximum of $10,000) at a 3.9 APR. To take advantage of this program, employees must be SchoolsFirst Federal Credit Union members.

“When I approached SchoolsFirst with the idea of a special loan program, Rudy Hanley said ‘yes’ immediately,” said Gordon. “A short time later, we worked out the details. A 3.9 percent loan is almost unheard of these days, and it’s a great opportunity for anyone who is eligible for the loan.”

The repayment terms of the loan is up to two years, and there is only one loan per member. When applying for this loan, faculty and staff members must agree to an automatic payment transfer and a current pay stub must be presented. The special also is subject to credit approval, and the SchoolsFirst member must be in good standing.

“This moved very quickly,” said Hewitt. “It was clear that the president felt this was a good idea. Within seven weeks, all the details were worked out.”

To become a member of SchoolsFirst Federal Credit Union, you can visit any SchoolsFirst branch (including the one on campus) or visit www.SchoolsFirstfcu.org/Membership.