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Baxter Credit Union Partners with State to Provide Loans for Illinois Students

Baxter Credit Union Partners with State to Provide Loans for Illinois Students

For immediate release:
September 15, 2008

Contact: Astrid Perez
(847) 522-8723
astrid.perez@bcu.org

Vernon Hills, IL—Baxter Credit Union (BCU) is one of eight Illinois credit unions participating in a groundbreaking new financing partnership with two Illinois state agencies that will make it easier for Illinois college students to obtain student loans. Governor Rod Blagojevich announced and praised the innovative program in a recent press statement.

The program details how BCU, along with seven other Illinois credit unions, will invest a total of $100 million in securities issued by the Illinois Student Assistance Commission (ISAC). The funds will make low-interest, federally secured Stafford Loans available for Illinois students and their families.

“We have responded creatively and quickly to a problem that has crippled student lending in other states,” said Governor Blagojevich. “This financing package will enable thousands of students to attend college this year, knowing that they can pay their tuition. I salute the participating credit unions for investing in the young people of Illinois.”

Federally insured student loans have been hard to obtain since the sub-prime mortgage lending fallout. A lack of liquidity, steadily increasing tuition costs and changes in federal policy that cut lender profits have resulted in a perfect storm for student borrowers. This new financing program makes college affordable for thousands of Illinois students.

“We are proud to be a part of a program that underscores the universal credit union mission of ‘People Helping People,’” said Michael G. Valentine. “Without federally insured student loans, college students will have few choices beyond private financing, which can be costly and difficult to obtain.”

Andrew Davis, ISAC Executive Director, said “When the global credit markets turned their back on Illinois students, these eight credit unions stood tall. This deal is terrific news for Illinois students and their families.”

With over $1.4 Billion in assets, BCU currently serves more than 138,000 members throughout the United States and Puerto Rico. Formed in 1981 and headquartered in Vernon Hills, IL, BCU is a not-for-profit, member-owned credit union known for competitive rates, low fees, and state-of-the-art services. Membership is open to several prestigious companies around the country, as well as anyone who lives or works in the Illinois counties of McHenry, Lake, DuPage, Kane, Cook (north of Rte. 58) and the village of Schaumburg.

Please call 1-800-388-7000 or visit www.BCU.org for more information. Students may inquire about federally-guaranteed loans at their financial aid offices or at ISAC’s lending arm, the Illinois Designated Account Purchase Program (IDAPP)