Credit Unions Help Strapped State Employees

Report Read time:
Credit Unions Help Strapped State Employees

As state employees across the country are being hammered by layoffs, pay cuts and forced unpaid days off, some state employees' credit unions are stepping in to help workers get through these tough times. Services include a variety of loan programs and even one Web site for recession and job-related tips.

The Virginia State Employee Loan Program allows state workers, regardless of their credit history, to borrow up to $500 twice a year. Since Gov. Tim Kaine (D) announced the pilot's launch July 13, more than 1,620 employees have received loans.

“The good news is that we have a loan for this. The bad news is that they need it,” said Sara Wilson, the chairwoman of the Commonwealth of Virginia Campaign (CVC), a group that coordinates charitable giving by state workers. The CVC operates the program jointly with the Virginia Credit Union.

The loans have a 24.99 annual percentage rate. So for a loan of $100, the worker pays back $108; a $500 loan would cost $540. An employee must have an account with the credit union to receive a loan, and a portion of the money is deducted from a worker's account until the loan is paid back in six months. 

Read the full report Credit Unions Help Strapped State Employees on Stateline.org.

MORE FROM PEW

A presentation being given by a businesswoman to a group of participants at a business conference. Four Plan Features Can Boost 'Retirement Readiness'
A large group of people in formal or traditional attire stands together on a stage, with a digital background depicting marine life and the large text “WTO Agreement on Fisheries Subsidies.” WTO Needs to Redouble Its Effort on Fishing Subsidies
A man in a winter hat and sunglasses kneels on a rocky shoreline in front of a campfire, holding a metal mug with gloved hands. Behind him, in the water, a motorboat is moored to the shore. Cliffs rise on both sides of the water. Why Newfoundland’s South Coast Fjords Are Sacred
An illustration of a couple holding hands walking away from an outline of houses behind them Pathways to Homeownership: Housing in America