Wednesday, May 1, 2013
Recently, a new bill designed to provide more access to student lending became law. The Maine Credit Union League and Maine credit unions played a pivotal role in working on this legislation.
"This is good news for consumers and students, and credit unions were glad to have a role in making it happen," explained John Murphy, President of the Maine Credit Union League.
The bill, L.D. 351-An Act To Authorize the Provision of Insurance on Student Loans, which unanimously passed the Maine Senate and passed the Maine House 142-1, became in April. Because the bill was emergency legislation, it becomes law immediately without having to go through the customary 90-day waiting period once session ends.
In addition to providing testimony in support of the bill, the League worked closely with the Finance Authority of Maine (FAME) on this legislation over the past year. Because of this legislation, FAME may provide loan insurance on supplemental student loans and the program has been renamed the Higher Education Loan and Loan Insurance Program. The League's President John Murphy added, "This will likely enable more credit unions to provide student loans to consumers. We are pleased that we were able to work successfully with FAME and other parties to make this happen for Maine people."