Bragging about Virginia’s “alternative”
December 30, 2009 | Virginia, alternatives, industry | Comments (0)Virginia Governor Tim Kaine is so proud of the “Virginia State Employee Loan Program” he’s bragging about it in the Wall Street Journal:
Virginia’s pilot program offers small loans ranging from $100 to $500 to state employees. The loans are offered at an annual percentage rate of 24.99% and are repaid via direct withdrawals from employee’s paychecks over a six-month period. While there is no penalty for early repayment, employees are limited to one outstanding loan at a time and may apply for only two loans per 12-month period. Most significantly, to help keep state employees on sound financial footing in the future, the loan requires borrowers to become a member of the Virginia Credit Union and complete an online financial fitness course on money management or checkbook management.
So let’s get this straight. The loan is only offered to state employees. It’s a six-month, not a tw0-week loan. You have to be a member of the Virginia Credit Union and complete an online financial fitness course. All this to get a $100 loan?
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