Redstone Federal offers help to members during federal shutdown


(Jan. 8, 2019) - Redstone Federal Credit Union® is standing with its members affected by the current government shutdown by offering low-interest loans and other benefits.

Members may apply for a loan at 2%-fixed APR of up to $5,000 - or their net monthly pay. The first loan payment is delayed for 60 days.

Members may also request Skip-a-Pay on certain Redstone loans to free up cash for other expenses. That loan payment can be deferred for one month.

“We want our members and their families to know that we are here to help,’’ said Joe Newberry, Redstone’s President and CEO. “We stand with our members and are here to listen and offer resources and options to help them successfully survive their government shutdown.’’

More than 5,500 federal workers across Alabama were furloughed or are working unpaid during the government shutdown. In Huntsville, 95% of NASA’s Marshall Space Flight Center employees are furloughed, according to data from Governing.

In addition to federal employees, many contract employees who work directly with these federal agencies are also affected and may need assistance.

With the holidays just ending, some workers may have already dug into their savings or faced additional expenses, making the shutdown even more financially stressful.

Redstone’s certified financial counselors are available to talk one-on-one with members who have questions or concerns about their family’s finances. They can help with loan payment evaluations and provide assistance on budgeting and money management.

Federal employees and contractors can, in most circumstances, file for unemployment benefits during a government shutdown.

Tara Hutchinson, spokesperson with the Alabama Department of Labor, said workers can file immediately for unemployment benefits if they meet the state’s eligibility requirements. However, once federal employees receive their back pay after the shutdown, those funds will have to be repaid.

“Repayment arrangements can be made through our department,’’ Hutchinson said. Find more information on their site.

Many of North Alabama’s non-profits are standing ready to assist if the shutdown continues for additional weeks.

Shirley Schofield, executive director of the Food Bank of North Alabama, said that she is reaching out to local food pantries this week to see if they are experiencing an uptick in requests.

“We are preparing ourselves in case there is an influx of orders,’’ Schofield said. “This is what food banks are designed for. We fill a need when families are in crisis or face emergencies. We hope the shutdown gets resolved soon.’’ she said.

About Redstone Federal Credit Union

With more than $4.5 billion in assets, Redstone Federal Credit Union is the largest member-owned financial institution in Alabama and one of the largest federal credit unions in the nation by assets. Based in Huntsville, Alabama, Redstone Federal Credit Union serves more than 410,000 members.

Chartered on November 28, 1951, Redstone Federal Credit Union has proudly served its members for 65 years and has 26 conveniently located branches across North Alabama and Tennessee.

Redstone Federal Credit Union provides a level of service that is not generally available at other financial institutions through its philosophy of - People Helping People.

Fixed APRs are fixed for the life of the loan. For a $2,500 loan for 12 months with a 2% fixed APR, the monthly payment will be $210.96. For a $5,000 loan for 12 months with a 2% fixed APR, the monthly payment will be $421.90. APR = Annual Percentage Rate.

Must be eligible for membership and open a savings account in order to obtain a loan. A $5 minimum balance is required to open and must be maintained in savings account at all times. All loans subject to credit approval. Maximum Furlough Loan amount is determined by the member’s direct deposit or pay stub. RFCU® is an Equal Credit Opportunity Lender. Must have online user name and PIN/password to access online application.

Skip-a-Pay Terms and Conditions: A processing fee of $35 per Skip-a-Pay request will be charged for each skip. When approved, the date on your loan is moved forward one month from the present due date. Your normal payment schedule will resume on the month following the month you select to skip. Skip payment requests can be made by any borrower on the loan. Interest will continue to accrue during the deferment period. A larger portion of your next payment will be applied to interest rather than principal. By skipping one payment, you are extending the final payment and maturity on your loan by one month. Your current loan payment amount is not changing. The total finance charges will increase. All other terms and conditions of your loan agreement continue to remain in full force and effect. Refer to your loan agreement for the original terms and conditions. All accounts with the Credit Union must be current and in good standing. Loan must be open for 180 days, with at least 6 payments made. Maximum of one Skip-a-Pay per loan per calendar year. You may only exercise the Skip-a-Pay feature three times during the entire term of your loan. Other restrictions may apply."