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Candidate pitches military loan expansion

by jason lee
the southern

Friday, July 21, 2006 6:50 AM CDT

CARBONDALE - Alexander Giannoulias, Democratic candidate for state treasurer, stopped by Carbondale Thursday to pitch expanding the state's military loan program.

Giannoulias spoke at Carbondale City Hall and said if elected he would push for a raise in the interest rate cap for the state's Operation Protect and Provide loan program, which offers bridge loans of up to $10,000 to National Guard and U.S. Military Reserve soldiers.

The current rate cap of 3 percent disqualifies some soldiers for financial assistance, Giannoulias said. By allowing participating banks to offer an interest rate of up to 7 percent, banks would likely view the loan as less of a risk and would be more inclined to approve it, he said.

"The debt we owe our citizen soldiers ... is immeasurable," Giannoulias said. "We need to do more to assist our military families encountering economic hardship so they can meet their financial obligations."

Giannoulias' proposal also would extend the duration of the loan to 36 months from 24 months as well as offer the program to military personnel returning from active duty. Non-active soldiers would have up to six months to apply for the loan after returning home, he said.

"This would establish a safe and secure financial opportunity for our troops as they return from combat," he said.

Giannoulias faces Republican state Sen. Christine Radogno on the Nov. 7 ballot.