WASHINGTON–Credit unions serving federal employees are again offering financial assistance to members as the status of federal government remains uncertain.
After it appeared Congress would pass another stop-gap funding measure, President Trump said he would shut the government down over the holidays and refuse to sign any legislation that does not include funds for the wall along the Mexican border that he wants built.. If no fix is found today, many government departments will shut down tonight at midnight. At press time, the White House said it was following Office of Budget and Management guidelines on notifying federal employees whether they'll be furloughed in case of a government shutdown
"Prudent management requires that agencies be prepared for the possibility of a lapse. OMB guidance states that two business days before a potential lapse, agencies need to notify employees of their work and pay status under a lapse -- that is, if they are furloughed or excepted. Agencies were directed by OMB to start that notification this morning," one White House official explained.
A number of credit unions in Washington have offered interest-free loans on varying amounts out to 30 days.
In Chantilly, Va., for instance, Justice Federal Credit Union said it was offering special assistance in the form of an unsecured, low interest rate loan and deferred payments to members of the Department of Justice and the Department of Homeland Security and other members furloughed as a result of a shutdown.
Members with a minimum of six months of membership with Justice Federal may apply for a Special Assistance Loan up to member’s net pay, not to exceed $3,000 at an annual low rate of 2.94% for 24 months. The actual loan amount is based on the member’s net pay deposit, with direct deposit required. Members may opt to defer their first loan payment for up to 90 days.
In addition, existing members in good standing with a Justice Federal consumer loan, or credit card may request to defer payments, and request assistance with a Justice Federal First Mortgage Loan.
“Justice Federal is focused on being the unwavering partner to the justice and law enforcement community,” said Mark Robnett, president & CEO. “We were founded in the halls of Justice in 1935 to help members in need during the Great Depression and nearly 85 years later, we continue to uphold our Founders legacy by helping our Members continue to thrive.”
In Massachusetts, Hanscom FCU, which serves Hanscom Air Force Base, said some of its members are eligible for a “LifeLine loan” during the time the government is shut down and paychecks are not being issued. In addition, Hanscom FCU said it will waive penalties for premature withdrawals on term share certificates and allow qualified members to skip consumer loan payments with no fee.
Members whose paychecks are affected by a shutdown or a furlough are also able to apply for a 0% APR LifeLine loan with a 60-day term, up to 100% of one’s net monthly pay or $5,000, whichever is less. For those needing more than 60 days to repay, the loan will be converted into installment payments over a 12-month term at a low fixed rate of 8.49% APR.