Credit union members' delayed federal checks covered should U.S. default
UPPER MARLBORO, Md., July 29, 2011 /PRNewswire-USNewswire/ -- In response to a possible U.S. debt default, which could delay federal government payments, NASA Federal Credit Union has come to the aid of its members through a short-term emergency loan program. Members affected by the inability of Congress to reach an agreement on the nation's debt ceiling, resulting in a delayed federal government check, will be eligible to apply for a Paycheck and Furlough Relief Loan, which has been expanded to cover members dependent on federal government payments such as Social Security.
NASA FCU will cover members' delayed federal paychecks or Social Security checks, as a result of the debt ceiling crisis. Those NASA Federal members who are affected will be able to apply for a 0 percent interest Paycheck and Furlough Relief Loan to cover delayed federal government payments. The loan also covers NASA FCU members who are Federal Aviation Administration (FAA) employees that were furloughed due to Congress' failure to pass an FAA budget.
While it is unclear who will be affected by a possible government default, U.S. Treasury Secretary Tim Geithner has said the federal government will be unable to pay all of its bills unless Congress addresses the debt ceiling by Tuesday, August 2. Revenues on hand would be less than U.S. obligations, forcing the administration to choose which bills to pay until Congress increased the government's borrowing authority. The inability of Congress to reach an agreement on the debt ceiling could delay government checks for Social Security and other federally-funded programs.
"We're standing by in the event the federal government defaults on its financial obligations, including the pay and benefits of its employees and individuals dependent on Social Security and other government payments," said NASA Federal Credit Union President and CEO Doug Allman. "We've always been here for our members, especially in times of financial uncertainty," he said. "The Delayed Paycheck and Furlough Loans program will cover members affected by delayed government checks. This unique loan program is also available to NASA FCU members who work for the FAA and have been furloughed as a result of the separate FAA budget issue."
Should members experience a delayed federal government payment, as a result of the possible August 2 government default, members may apply for a Delayed Paycheck and Furlough Relief Loan by contacting NASA Federal. For those members with delayed federal checks, the credit union will offer a 0 percent interest loan up to 30 days. After 30 days, loans would be converted to a 12-month signature loan at the current APR. For furloughed federal workers, a 12 month signature loan will be available with preferred rates including 0 percent interest for the first 30 days.
"We hope that Congress will resolve the U.S. debt and deficit crisis, but in the event they don't, resulting in a government default, NASA FCU has its members covered," said Allman. "We're always ready to help our members, especially in times of financial stress."
Members should contact NASA Federal Credit Union directly for all requests, eligibility, and qualification of the Delayed Paycheck and Furlough Relief Loan program and other NASA FCU services at 888-627-2328 ext. 7212. Visit us at: www.nasafcu.com.
About NASA Federal Credit Union: NASA Federal Credit Union is a not-for-profit financial cooperative owned entirely by its members and operated for the benefit of all who belong. Chartered in 1949, NASA Federal Credit Union serves the diverse needs of more than 75,000 members with a full array of financial services and the strength of over $1 billion in assets.
SOURCE NASA Federal Credit Union