DECEMBER 6, 2006 - Lansing, Kalamazoo, Marshall and Grand Rapids area credit unions announced a landmark program that will provide a combined $6.7 million in below market, unsecured educational loans to credit union members primarily affected by Michigan's unprecedented job losses in the manufacturing sector.

Local participating credit unions include:

Lansing Area ($4.6 million aggregate)
Eaton County Educational Credit Union,
Charlotte Lansing Automakers Federal Credit Union,
Eaton NuUnion Credit Union, Lansing

Kalamazoo Area ($1.4 million)
First Community Federal Credit Union, Parchment

Marshall ($500,000) Marshall Community Credit Union, Marshall

Grand Rapids ($200,000)
Meijer Credit Union, Grand Rapids

The State of Michigan, through the Michigan Department of Labor & Economic Growth (DLEG), has earmarked an additional $1.5 million to assist CTP students with the cost of textbooks and $200,000 for career counseling and placement services.

"I want to make sure workers impacted by our transitioning economy are able to update their education and enhance their job skills," Granholm said. "The Career Transition Program, available to credit union members throughout Michigan, will help make that education and training a reality for those who need it." CTP will provide unsecured, unguaranteed student loans to credit union members who may require new or advanced training in a vocation or trade due to their situation in the job market. A key part of the program is that for 24 months from the date of the first loan disbursement, there are no loan payments and interest is forgiven. The average minimum projected savings for a member who qualifies for a $10,000 loan under the program is $950, based on the current unsubsidized Stafford loan rate-and is as much as $5,100 when compared to an unsecured loan for the same 10-year term. For more information, go to www.ctpforcumembers.com.

"The Michigan credit union community has enthusiastically embraced the CTP to provide real solutions to members faced with sudden job loss in this evolving economy," said David Adams, president and chief executive officer for the Michigan Credit Union League (MCUL). "While credit unions are an integral part of Michigan's economy through good times and bad, the current economic climate challenges us to do even more."

The DLEG funds will be utilized to reimburse loan recipients for the costs of books required for their financed programs of training. Students will have the opportunity be reimbursed up to $500 per semester. Applications will be available at local Michigan Works! agency offices.

"In addition to the $1.5 million for textbook assistance, DLEG is earmarking another $200,000 for Michigan's community colleges to expand Career Guidance, Counseling, and Placement services for students who are seeking new skills resulting from unemployment," said DLEG Director Robert W. Swanson. "The counselors will be able to assist students with making the transition for new career opportunities."