The American Federation of Teachers Interest-Free Loan Program

In the event of a strike, lockout, or similar work stoppage, one of our Local’s affiliates, The American Federation of Teachers (AFT), will pay the interest for members who need to take a loan to cover personal expenses. Following are the procedures for eligibility, covered amounts, and timelines.

Eligibility

• A member in good standing becomes eligible for coverage of interest on a loan:
  • After at least five (5) days on strike, AND After one (1) payday has been missed during a strike;

OR

• • After one (1) paycheck reflecting the loss of at least 5 days of pay (or the equivalent of a regular work week as defined by the collective bargaining agreement. Examples include staff on irregular shift work such as three 12-hour shifts in one week; part-time/adjunct teaching one or two courses; those with combined night and/or weekend hours combined
    to make a full-time job; those working non-consecutive days; etc.

Strike Loan Amounts and Timelines

• The maximum amount of the loan for which AFT will reimburse the interest is $600.00 per week for the duration of the strike. Members may take loans for more than that amount if necessary and eligible. Interest is only reimbursed on ($600.00) a week.
• Maximum interest rate for reimbursement shall be set by agreement between the local and AFT to reflect the prevailing rate in that area.
• The loan repayment period shall be no more than one year except as described below:
  • Each week of strike beyond 4 weeks adds 3 months to the repayment period. (i.e. 5 weeks on strike is a max loan of ($3,000) with interest paid on a 15 month loan period; 6 weeks of strike is a max loan of ($3,600) with interest paid on an 18 month loan period.

Loan Process

• All members of AFT locals that are on strike should be informed that if they wish to take advantage of the AFT Interest Free Loan Option they may seek a loan through their bank or credit union.
• Upon receipt of a loan from their own bank or credit union, the member should complete and sign “Form A” and send it to the local’s Strike Loan Committee with a copy of the loan agreement. This form will become available in April if necessary.
• The loan must be applied for during the strike but not later than two weeks after the end of the strike, or two weeks before the first paycheck is received after the strike is over, whichever is later.
• When the loan has been repaid in full, the member will receive reimbursement for the interest on the loan.

Rejected Loan Applications

• If a member’s application for a loan from the bank or credit union is denied, the member should complete and sign “Form B” and send it to the local’s Strike Loan Committee with the bank/credit union’s rejection notice. This form will become available in April if necessary.
• In such cases, the local will work with AFT to attempt to secure a loan for the member in accordance with the policies outlined above. If determined to be necessary, all or part of such loan may be backed by a combination of AFT, the local and where applicable the state federation pursuant to the resolution approved by the Executive Council in 1977.
• The AFT will reimburse the member for the interest on the loan upon proper submission of proof of payment.

Reimbursement Process

• The AFT will pay the interest on the loan for a period of one year or as described above.
• To be reimbursed for the interest on the loan, the member should submit proof of repayment to the local.
• The local (United Academics) takes care of the rest.