Career Transition Program (CTP)

2 What is it? An affordable education loan, funded by individual credit unions, tailored specifically for credit union members transitioning into a new career or occupation.

3 Career Transition Program (CTP) Thousands of Michiganders face job loss due to restructuring, downsizing or the transfer of operations overseas. The Michigan credit union industry has partnered with the State of Michigan to offer CTP tuition assistance.

What a CTP loan is…. This is basically a line-of-credit loan with a maximum limit of $10,000. There will be NO interest or fees assessed to the loan for the first 24 months. Loans are approved based on the underwriting/eligibility requirements of each individual credit union. 4

What a CTP loan is…. At the end of the 24-month period, the credit union will convert the BALANCE on the line-of-credit into a fixed-rate loan that can be paid back over a period determined by the credit union but no longer than 10 years. The rate is.50% below the CURRENT Stafford Loan rate at time the loan is converted into the fixed-rate, closed-end loan. 5

6 Quick Financial Analysis $100,000 At CenCorp$100,000 in CTP Loans Interest Rate as of 11/3/ % Stafford Loan Rate as of 11/3/08 - 6% Amortized over 12 yearsAmortized over 10 years Total Interest - $5,847Total Interest - $30,231

7 About the Program... Assistance Eligibility 1. Members of participating CUs that are or will be displaced 2. Members who have worked full time at least 2 years prior to displacement 3. Credit Union Member in Good Standing 4. Members 21 years of age and older

8 About the Program... Program Guidelines 1. Maximum assistance per member is $10, All assistance disbursements must be made within 24 months of start date. 3. Disbursement only with class schedule and tuition bill from eligible schools. 4. Checks will be payable to school and member.

9 About the Program... Loan Type 1. Fixed-rate loan for a maximum of 10 years. 2. No payments or interest for 24 months. 3. Interest rate will be set at.50% below the standard Stafford Loan rate.

What resources are available for credit unions? On the main page of CTP, click on the “For Credit Unions” in the top right-hand corner of the screen. 10

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12 If you haven’t logged in, just click on Request Account.

13 Fill in your information along with your password. After you hit submit, go back to login page and login.

14 Before you get started in the program, review the FAQs.

15 Before you get started in the program, review the CTP Webinar.

16 Review the information under Marketing & Promotion.

17 Review the Sample CTP Form under Marketing & Promotion.

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20 Steps to begin offering CTP Decide you are going to offer CTP loans. 2. Determine what your credit union’s eligibility/underwriting requirements will be. 3. Set up policy and procedures to determine how you will document eligibility/underwriting requirements.

21 Steps to begin offering CTP Bring policy and board resolution to the board of directors for approval. 5. Set up your loan disclosures and documents. See Sample under Marketing & Promotion, Program Tools. 6. Make sure loan is built into data processing so 24-month time frame is tracked.

22 Steps to begin offering CTP Develop your marketing - Credit unions can utilize and customize the marketing material available under the Marketing & Promotion tab. 8. Begin making loans.

23 Resources available for CU Members on the home page

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Find a participating Credit Union Click on “Find a participating Credit Union” to see which 34 credit unions are participating in this program. A member would call their individual credit union. 25

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27 Career Resources Provides links to: Employment search engines Tools for jobseekers State organizations offering re-employment career training services Education and training Career information

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Additional Resources Gives a member information on personal financial training in the areas of: Saving and budgeting Credit Money management Contending with life-changing events 29

Additional Funds When a member gets a CTP loan, they are also eligible to receive up to $500 per semester for textbook reimbursement from Michigan Works! Member is also eligible for FREE career counseling through the partnership with the State of Michigan. 30

Board and Management Approval How did you convince your Board and/or Management to participate? 31

Marketing Techniques What has worked for you? Any suggestions to getting the program up and running? 32

Partners Who are your local partners? Do you work directly with colleges in your area? 33

34 Conclusion Any Comments or Questions?

35 Why CTP? It’s good for credit unions. It’s a unique opportunity to show critics how we’re earning our tax exempt status. It’s good for members. Out of work with no job prospects on the horizon, many Michiganians will be scrambling to find affordable financing for job-retaining. Because of their field of membership and historical connection to the automotive sector, credit unions are uniquely positioned to assist members adversely affected by the state’s loss of manufacturing jobs. It’s good for Michigan. This program will keep skilled workers where they belong—in Michigan

36 For additional information on the program, please contact MCUL CRI Coordinator Stacy Dugan at (800) , extension 458 or