Loan Relief and Financial Counseling for Federal Employees (Federal Layoffs/Funding Cuts Program)

Loan Relief and Financial Counseling for Federal Employees

Geographic Scope: Hawaiʻi statewide

Background: Joint effort between Hawaiʻi Community Lending and Hawaiian Community Assets (HCA) to support workers impacted by federal layoffs and funding cuts.

Scope of Impact: Expected impacts:

• More than 2,200 federal worker layoffs
• Estimated 1,200 additional layoffs due to government downsizing and cuts to federal programs

Eligibility:

• Current HCL borrowers who have lost employment or income
• Workers recently laid off by federal government
• Those impacted by federal funding cuts across Hawaii
• Must provide proof of financial hardship

Relief Options for HCL Borrowers:

• Refinance: Available to borrowers with 12+ months of on-time payments; helps lower monthly payments
• Forbearance: Pause payments for up to 12 months
• Temporary Interest-Only Payments: Make interest-only payments for up to 12 months
• Loan Modification: Adjust loan terms to reduce monthly payments

Support Services (HCA):

• Emergency financial counseling for all affected workers
• Create emergency household budgets
• Access to benefits and public assistance information
• Referrals for:
  • Rental support
  • SNAP (food assistance)
  • Healthcare
• Long-term financial stability planning
• Support applying for OHA Emergency Financial Assistance Program

Additional Resources:

• Educational video series on financial rights and options
• Tools to prevent foreclosure
• Available on HCL and HCA websites and social media

Contact & Information:

• HCL: HawaiiCommunityLending.com
• HCA: HawaiianCommunity.net
• Navigation Specialists available for assistance
• Contact: www.hawaiicommunitylending.com

How to Access Loan Relief and Financial Counseling

1. Contact HCL/HCA: Reach out through one of the listed contact methods
2. Verify Eligibility: Provide proof of:
   • Federal employment layoff or funding cut impact
   • Financial hardship
   • HCL loan account (if borrower)
3. Assess Relief Options: HCL reviews loan history and circumstances
4. Select Relief Program: Choose appropriate relief option (refinance, forbearance, interest-only, or modification)
5. Emergency Financial Counseling: Enroll with HCA for comprehensive counseling services

Required Documentation

• Proof of federal employment layoff or funding cut impact
• Proof of financial hardship
• HCL loan account information (if applicable)