NEW YORK (8/7/13)--Neighborhood Trust CU in New York City will administer subsidized child care loans to middle class families in a program launched by City Council Speaker and mayoral candidate Christine Quinn, CNN reported Monday.
"We were approached by the City Council," Justine Zinkin, CEO of Neighborhood Trust Financial Partners and Neighborhood Trust CU, told News Now. "They were interested in a way to basically support families interested in better child care for their children.
"We were very specific that this loan should be bundled with financial education and counseling, not just debt, and fit into a broader format and goal," she added.
Qualified applicants must have an annual income of $80,000 to $200,000, a credit score of at least 620 and attend a free financial counseling session with a Neighborhood Trust counselor. The financial counselor will conduct a comprehensive review of the applicant's finances to assess the loan application, the New York City Council said in a press release.
Once any credit, savings or budgeting issues are identified and remedied, interested parents will then fill out a loan application and be referred to the $8.2 million asset Neighborhood Trust FCU for final loan underwriting, approval and disbursement, the city council said.
Neighborhood Trust Financial Partners is looking forward to joining Quinn and the New York City Council in the partnership, said Zinkin in the release.
"Neighborhood Trust has a nearly 20-year history in New York City of helping individuals achieve their financial goals by providing financial counseling and support services," Zinkin explained. "The Middle Class Child Care Loan Initiative combines two important tools to help families achieve their children's long-term education goals--access to early childhood education through a responsible low-interest loan and high-quality financial education and planning."
New York City has one of the highest child-care costs of any area in the country, the council said.
Child-care costs can run as much as much as $2,300 per month in Manhattan and $1,700 per month in Brooklyn, CNN reported.