By Myles Ma
A credit union is supposed to look out for its members. And if most of those members are state workers, as is the case with the Credit Union of New Jersey, that means keeping close tabs on movements within the government and adjusting accordingly.
Given the state’s budget woes, and the effect they have had on state employees, the Credit Union last year offered furlough loans worth two weeks pay, up to $2,500, at a fixed rate of 6.99 percent. Andrew Jaeger, president and CEO of the Credit Union, expects more furloughs and pay cuts this year.
Jaeger believes there will be as many as 26 furlough days for state employees next year.
The Credit Union of New Jersey has always had close ties to the state government. It was founded by employees of the state Highway Department, now the Department of Transportation, in 1943. Today half of its approximately 40,000 members are state employees, though membership is also open to anyone who lives, works or worships in Ewing, or parts of Trenton and Burlington County.
They also serve businesses that are members of the Mercer County Chamber of Commerce.
Though it is a tumultuous time, Jaeger said having a pool of members comprised mainly of state workers presented a slightly lower risk than other lenders face.
Jaeger explained the difference between credit unions and banks was that the Credit Union offered small loans to its members that they wouldn’t be able to get at banks. Aside from that, he said, members had access to a full range of banking services, including savings and checking accounts, money orders, auto, student and mortgage loans and Internet banking, among others.
Jaeger said that because the credit union is a nonprofit organization, it can focus more on serving members rather than shareholders.
“People can trust the credit union to look out for their best interests,” Jaeger said.
Jaeger recalled an instance when the Credit Union made a student loan to a woman whose family had gone bankrupt after medical bills from a dying family member piled up. He said she wouldn’t have qualified for a mainstream loan.
“It would be rare to find that being done by a for-profit institution,” Jaeger said.
The Credit Union of New Jersey is also committed to educating its members. All of its financial service representatives teach customers about how credit scores work and dispense financial literacy and education lessons to their clients.
Credit Union Employees also frequently visit local high schools to deliver presentations on financial literacy.
The Credit Union of New Jersey has six locations in Ewing, Trenton, Princeton and Willingboro, including its headquarters at 1301 Parkway Ave. in Ewing. For more information, call (609) 538-4061 or go online to cunj.org.
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