The $26.5 billion, 1.8 million-member State Employees’ Credit Union said this week that it has now bought $7 million in federally insured student loans from a North Carolina state program.
The purchases from the North Carolina State Education Assistance Authority helps fund loans that provide a second chance at repayment for borrowers who have defaulted on Federal Family Education Loans
Qualifications include remittance of nine consecutive voluntary payments at an amount the borrower can sustain in the future, SECU said, and 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.
“The Loan Rehabilitation Program continues to be successful in giving student loan borrowers an opportunity to succeed,” SECU CFO Mike Lord said in a statement.
“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,” Lord said. “Investing in our state’s students is a good thing.”
SECU said it began purchasing the rehab loans when the program began last year. In 2008, the big credit union bought $1.6 billion worth of student loan bonds from the NC SEAA in a separate program.