Career Transition Program - FAQs
Q: What is the purpose of Career Transition Program (CTP)?
A. The purpose of the Career Transition Program is to provide affordable educational loan assistance to credit union members who, because of the downturn in Michigan’s manufacturing sector and other industries, may require advanced training in a vocation, trade or new career.
Q. Who developed the CTP?
A. The CTP was developed by the Michigan Credit Union League (MCUL) in conjunction with DFCU Financial Credit Union. It has been embraced by the Michigan credit union community and is supported by the State of Michigan.
Q. Is the State of Michigan supporting the program?
A. Yes. Michigan’s Department of Labor and Economic Growth has committed $1.5 million to assist members with buying text books. The average college student spends $900 a year on textbooks according to a recent report form the General Accounting Office (GAO).
Q. What are the program’s guidelines?
A. The guidelines are as follows:
- Maximum assistance per member of $10,000.
- Fixed-rate loan with a maximum amortization of 10 years which begins after 24 month deferment period.
- Interest rate set at .50% below the Stafford Federal Student Loan rate (currently 6.8%)
- All assistance disbursements to be make within 24 months of program start date.
- First payment requires class schedule and tuition bill. (all payments can be made subject to submission of schedule and tuition bills for subsequent semesters.)
- Checks will be make payable to student and school. Student must attend an accredited 2-year or 4-year college or university in the state of Michigan. (Specific technical, vocational and trade schools many be acceptable).
Q. How can I get my credit union to participate in this program?
A. Call your credit union and ask that it participate in the Career Transition Program. Credit union participation is voluntary and subject to approval by the credit union’s Board of Directors by the credit union’s Board of Directors. A member of the Board of Directors would propose a resolution that the credit union set aside a percentage of its assets to fund their participation in the Career Transition Program. The Board of Directors would have to take positive action on the proposal before the credit union could participate.
Q. What if my credit union is not participating, do I have any options?
A. Yes, the Michigan Works! Agency in your area has funds budgeted for re-training workers impacted by the state’s changing economy. Also, your community college Career Planning Office should be able to assist you in locating resources to assist you in re-training. Visit the Governor’s No Worker Left Behind initiative.
Q. Who should I contact to get my training program certified?
A. The State of Michigan, Department of Labor and Economic Growth certifies job training programs. Please contact:
Deb LaPine, Director
Bureau of Career Education Programs
Michigan Department of Labor and Economic Growth
517-241-4000
lapined@michigan.gov
