State Employees’ Credit Union’s support of NC students through the purchase of federally insured student loans from the North Carolina State Education Assistance Authority (NCSEAA) has reached the $7 million mark. The purchase of student loans through NCSEAA’s Loan Rehabilitation Program provides funds to NCSEAA that are used to assist other student loan borrowers and aid in the development of educational offerings!
Authorized under federal law, the Loan Rehabilitation Program was put in place to help student borrowers who defaulted on Federal Family Education Loans earn a second chance to repay the loans, repair their credit histories and improve their lives. Certain program qualifications must be met by participants, including remittance of nine consecutive voluntary payments at an amount the borrower can sustain in the future. Upon qualifying, new repayment terms may be available, eligibility for federal and state financial aid is reinstated and a defaulted loan status is removed from the student’s credit record.
SECU’s Chief Financial Officer, Mike Lord notes, “The Loan Rehabilitation Program continues to be successful in giving student loan borrowers an opportunity to succeed. Sometimes success requires a second chance and through the purchase of these federally insured student loans, SECU is helping NCSEAA give more opportunities to those in need. Investing in our State’s students is a good thing and our partnership with NCSEAA is truly beneficial for all involved.”