PenFed Credit Union Provides Furlough Relief for Federal Employees Affected by Potential Government Shutdown

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Sep 27, 2023, 11:41 ET

PenFed's government furlough Direct Deposit Assistance feature offers interest-free loans in amount of member's net pay, up to $6,000

TYSONS, Va., Sept. 27, 2023 /PRNewswire/ -- PenFed Credit Union, the nation's second largest federal credit union, today announced it will offer emergency furlough relief assistance, including direct deposit assistance, for qualified members who are impacted by a potential lapse of federal appropriations at the end of the month. In cases where the member has their direct deposit with PenFed, they may qualify for an interest-free loan in the amount of their net pay and will be able to request an additional increase for each direct deposit not received during the government shutdown.¹

"PenFed understands the hardship furloughed employees face when they don't receive the paychecks they rely on to pay their bills, buy groceries and support their families," said PenFed Credit Union President/CEO and PenFed Foundation CEO James Schenck. "We are committed to working with our members to minimize financial impact and ensure their financial security."

In addition to direct deposit assistance, PenFed furlough relief programs include:

Skip a payment. Members may receive 1-month skip a payment on qualifying loans if affected by a furlough.²
Government Furlough Loan. If an affected member's pay is not directly deposited into a PenFed account, upon credit qualification, they could receive lowest available rate for a personal loan product.³
Home Loan Hardship Assistance. Depending on the member's loan type, PenFed has several relief options, to include deferring payments, forbearance plan, repayment plan and loan modification.

PenFed has supported its members through the past 21 government shutdowns since 1976 and assisted thousands of members with no interest loans during the 2018-2019 shutdown. PenFed serves 2.9 million members with a core membership that includes, among others, those serving in the Armed Forces, the Department of Defense, the Department of Homeland Security, military associations and veterans.

Additional information on PenFed's relief options can be found at PenFed.org. To receive any advertised product, you must become a member of PenFed Credit Union.

¹Qualifying members who have their pay directly deposited into a PenFed checking account may qualify for an interest-free advance on an Overdraft Line of Credit account equal to their net pay, up to $6,000. Members may request an additional advance for each direct deposit not received during the furlough. Members must provide a copy of the furlough letter to verify they are directly impacted by the shutdown. Advance(s) must be repaid within 10 days of receipt of the direct deposit to ensure the advance remains at 0% interest.

²First Mortgage, Fixed Equity Loans and HELOC loans are not eligible for the Skip a Payment program.

³Available for up to one month's net pay for a maximum term of 6 months. Interest rate is currently 7.99% APR. Members must qualify for credit under PenFed guidelines. Members must provide a copy of the furlough letter to verify they are directly impacted by the shutdown.

About PenFed Credit Union
Established in 1935, Pentagon Federal Credit Union (PenFed) is America's second-largest federal credit union, serving 2.9 million members worldwide with $35.3 billion in assets. PenFed Credit Union offers market-leading certificates, checking, credit cards, personal loans, mortgages, auto loans, student loans, and a wide range of other financial services with members' interests always in mind. PenFed Credit Union is federally insured by the NCUA and is an Equal Housing Lender. To learn more about PenFed Credit Union, visit PenFed.org, like us on Facebook and follow us @PenFed on Twitter. Interested in working for PenFed? Check us out on LinkedIn. We are proud to be an Equal Employment Opportunity Employer.