RALEIGH, N.C., Sept. 11, 2014 (GLOBE NEWSWIRE) -- Reaffirming its support of North Carolina college students, State Employees' Credit Union's (SECU's) Board of Directors recently approved the purchase of up to $50 million in federally insured student loans from the North Carolina State Education Assistance Authority (NCSEAA). This increase doubles SECU's original commitment to purchase student loans from NCSEAA's Loan Rehabilitation Program.
The purpose behind NCSEAA's Loan Rehabilitation Program is to allow student borrowers with defaulted Federal Family Education Loans a second chance to repay the loans, repair their credit history and continue their education by successfully completing the Program. Under the Loan Program's qualifications, once the borrower makes 9 consecutive voluntary monthly payments at an amount they can sustain into the future, their defaulted loan is restored to good standing and they may begin new repayment terms on the loan. In addition, the borrower's eligibility for federal and state financial aid is reinstated, and the defaulted loan status is removed from the participant's credit record.
"As many students struggle to repay their loans, it's wonderful to have access to capital for the Program's rehabilitation process that offers borrowers an opportunity to demonstrate their desire and willingness to bring their loan and credit to good standing," said Dr. Steve Brooks, Executive Director of the North Carolina State Education Assistance Authority. "We are grateful to State Employees' Credit Union for their support and increased investment of $25 million, making it possible to help students looking for a fresh start regain a foothold on their educational and financial goals."
Mike Lord, SECU's Chief Financial Officer commented, "As a not-for-profit financial cooperative, State Employees' Credit Union continually seeks solutions to help members experiencing financial hardships. SECU's ongoing support of the Loan Rehabilitation Program to help North Carolina students looking to repay their debt and repair their credit reinforces that commitment. A second chance through this Program allows students to recover from difficult financial barriers, providing more opportunity to improve their overall economic future."
About SECU
A not-for-profit financial cooperative owned by its members, SECU has been providing employees of the State of North Carolina and their families with consumer financial services for 77 years. With more than 1.9 million members, SECU provides services through 254 branch offices, 1,100 ATMs, 24/7 Contact Centers and a website, www.ncsecu.org.