First Federal Credit Union Offers Zero Percent Interest on Furlough Assistance Program
Cedar Rapids - First Federal Credit Union has developed a unique Furlough Assistance Program to assist U.S. Government employees affected by the temporary shutdown. “We recognize the difficult circumstances many area families find themselves in due to the shutdown”, remarked CEO Tom Chalstrom, “and we knew we needed to develop a quick program that will truly help these families and try to alleviate some of their financial concerns”.
The program will provide up to a $5,000.00 unsecured loan at zero percent interest during the shutdown period. Interest will not start accruing on the loan until the day government employees receive their first paycheck – and then it is at a below-market interest rate of 4%. Finally, the first monthly payment will not be due until 60 days after the first paycheck to allow time for the government employees to catch up on the family finances and return to normal.
“We are really trying to alleviate the concerns these employees may have. We want to truly help them and not take advantage of their situation with high rates or fees”, Chalstrom stated. “Additionally, we are working with current borrowers that may be affected by offering deferred payments or waiving overdraft fees.”
Any government employee in Linn County impacted by the shutdown is eligible to apply for the Furlough Assistance Program. Applications can be found at FirstFedCU.com
About First Federal
First Federal Credit Union is a nearly 10,000 member –strong community credit union with offices in Cedar Rapid, Hiawatha and Spencer, IA. Originally chartered in 1926, First Federal Credit Union is the second-oldest credit union in the state of Iowa. First Federal provides membership to anyone who lives, works, or worships in Linn, Clay, Dickinson, and Buena Vista counties in Iowa. For more information call 319.362.3171 or visit www.firstfedcu.com. First Federal Credit Union’s deposits are federally insured by the National Credit Union Association up to the full extent permitted by law.