October 26, 2006 -Robert W. Swanson, director of the Department of Labor & Economic Growth today along with Saginaw and Bay City credit unions announced a landmark program that will provide more than $2.5 million in below-market, unsecured educational loans to local credit union members primarily affected by Michigan's unprecedented job losses in the manufacturing sector.

Local credit unions participating in the Career Transition Program (CTP) include Communications Family Credit Union and United Financial Credit Union all located in Saginaw; and the Sunrise Family Credit Union located in Bay City.

"I want to make sure workers impacted by our transitioning economy are able to update their education and enhance their job skills," said Governor Jennifer Granholm. "The Career Transition Program, available to credit union members throughout Michigan, will help make that education and training a reality for those who need it."

Credit Unions across Michigan are providing some $40 million for the statewide program. The State of Michigan, through the Michigan Department of Labor & Economic Growth (DLEG), has earmarked an additional $1.5 million to assist CTP students with the cost of textbooks and $200,000 for career counseling and placement services.

CTP will provide unsecured, unguaranteed student loans to eligible credit union members who may require new or advanced training in a vocation or trade due to their situation in the job market. 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. For more information, go to www.ctpforcumembers.com.

"The Michigan credit union community has enthusiastically embraced the CTP to provide real solutions to members faced with sudden job loss in this evolving economy," said David Adams, president and chief executive officer for the Michigan Credit Union League (MCUL). "While credit unions are an integral part of Michigan's economy through good times and bad, the current economic climate challenges us to do even more."

The DLEG funds will be utilized to reimburse loan recipients for the costs of books required for their financed programs of training. Students will have the opportunity to be reimbursed up to $500 per semester. Applications will be available at local Michigan Works! agency offices.

"In addition to the $1.5 million for textbook assistance, DLEG is earmarking another $200,000 for Michigan's community colleges to expand Career Guidance, Counseling, and Placement services for students who are seeking new skills resulting from unemployment," Swanson said. "The counselors will be able to assist students with making the transition for new career opportunities."

Read more Michigan Department of Labor & Economic Growth press releases.