Credit Union-Backed Student Lending Bill Awaits Governor's Signature in Maine
Maine Gov. Paul LePage may soon sign into law proposed legislation that could encourage the state’s credit unions to provide student loans, according to the Maine Credit Union League.
Backed by the MCUL, the law would provide loan insurance on supplemental student loans. The bill, which was recently passed by Maine’s House and Senate, also would require students to take a financial education class in order to receive a loan.
Kyle Casburn, president/CEO of the $106 million Seaboard FCU in Bucksport, and Joe Gervais, then executive vice president at the $211 million University CU in Orono, testified before state lawmakers to support the bill. Gervais has just been named CEO of the $126 Midcoast FCU in Bath.
In his testimony, Casburn said the legislation would encourage more credit unions to get involved with providing student loans, which would benefit students and parents.
MCUL President John Murphy said the financial education provision in the proposed law reinforces the credit union industry’s financial literacy advocacy. The $343 million Maine State CU in Augusta helped the league and state officials draft the bill, Murphy said.