DETROIT — Last summer national attention was riveted on the since-doomed move to convert the $1.8 billion DFCU Financial of Dearborn into a mutual savings bank, but today the state's largest CU once again has a high profile, except it's now centered on Michigan's troubled economy and a people helping people message.

"We felt a duty to assist our members which include a large number of unemployed Ford workers," explained Michael Kruczek, executive vice president and chief lending officer, in describing DFCU's key role in the $40 million Career Transition Program offering no-interest and below-market unsecured educational loans to needy employees of Ford Motor Co. and other hard-hit Michigan firms.

CTP, which has won praise from state lawmakers and Gov. Jennifer Granholm, was officially debuted last October by the Michigan Credit Union League with 37 CUs signed up, but by far the biggest commitment, $10 million, has come from DFCU which has already lent out $800,000 based on 120 applications.

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Under CTP, participating CUs, like DFCU, offer the unsecured, unguaranteed student loans to CU members who seek new or advanced vocation training. A key part of the program is that for 24 months from the date of the first loan disbursement, there are no loan payments and interest is forgiven.

The average minimum projected savings for a member who qualifies for a $10,000 loan under the program is $950, based on the current unsubsidized Stafford loan rate–and is as much as $5,100 when compared to an unsecured loan for the same 10-year term.

Kruczek said given the economic plight of many Detroit businesses and the continuing downsizing of Ford, "with those massive layoffs, we felt we had an opportunity to do something to help out displaced workers who are forced to find a new career."

A spokesman for the Michigan League said DFCU, which has Ford as its largest SEG, has long taken the lead on CTP and that other Michigan CUs are now joining up as well with new marketing messages being sent out during 2007 with more CUs expected in the fall when the school years starts.

It was noted that the CTP loans do carry a risk for the average CU in the current economy. Applicants need only be a member for a year, can be unemployed and don't have to meet strict eligibility rules other than having a 620 credit score.

CTP was mentioned prominently in October by Gov. Granholm who said the $40 million being committed "in this landmark program" would go far in helping CU members affected by "Michigan's unprecedented job losses in the manufacturing sector."

She also announced that the state's Department of Labor and Economic Growth had earmarked an additional $1.5 million to assist CTP students with the cost of textbooks and $200,000 for career counseling and placement services. –[email protected]

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