Gov. M. Jodi Rell has signed a bill that would let more state students access college loans through a program that began last year with state credit unions.
It takes effect immediately under the Connecticut Health and Education Facilities Authority, which can free up $3.5 million guarantee loans issued by credit unions through a statewide loan program.
The students, however, cannot be eligible for other student-loan programs. Also, their parents may not be using home-equity loans to pay for school.
“The best way that our state can position itself for a bright economic future is to continue to invest in an educated and diverse workforce,” Rell said in a statement. “We know that household budgets are strained and parents are already bracing for the fall tuition bills that will begin arriving over the next several weeks. This credit union student loan program is another tool, a bridge loan if you will, to help families and students through this weakened economy.”
Participating credit unions have committeed to $17.5 million in loans.
More information is available at ://www.ctcua.org/ctcua/Public_News.asp?id=8751&lid=15 )
Interest rates range from 6 percent tor 5.75 percent.
“In this time when it is difficult for students to get loans, these reserve funds will help more students to get loans at lower rates,” Governor Rell said.