Ka Wai Ola - Office of Hawaiian Affairs, Volume 31, Number 3, 1 March 2014 — Changes to OHA loan program aim to ensure solvency [ARTICLE]

Changes to OHA loan program aim to ensure solvency

Debt consolidation resumes with lower limit

By Harold Nedd The Office of Hawaiian Affairs on Jan. 3 1 announced some key changes to its loan program that appeals to borrowers who want to improve homes, start businesses or cover education expenses. Now, the Mālama Loan Program will also allow Native Hawaiian borrowers to again consolidate

debt - to lower monthly payments - for the first time since September 2012, when this particular feature of the program was discontinued over overwhelming demand from consumers burdened with debt. But the programhas reduced the maximum size of all loans to $19,999, from $100,000. Also, the program has increased the interest rates on all loans to 6.5 percent, from 4 percent.

However, the repayment period on all loans remains seven years and First Hawaiian Bank will eonhnue to administer the program for OHA. "The changes are necessary to allow the program to remain solvent," said OHA Ka Pouhana, Chief Executive Officer Kamana'opono Crabbe. "But even with the changes, we believe that our Mālama Loan Program still remains a viable ophon for Hawaiian borrowers who are in debt trouble and want to get the lowest rates on loans." Since it was created, the Mālama Loan has been tapped by nearly 2,000 Hawaiian borrowers, who have received more than $34 million to start businesses, improve homes, consolidate debts and continue their education. For more information, visit www.oha.org/ malamaloan. ■