MEMBER NOTIFICATION
FEDERAL RESERVE RATE INCREASE
In an effort to slow down the growth of record-high inflation, on June 15, the Federal Reserve made the decision to increase the federal funds rate by 0.75%.
The federal funds rate is important because it affects many other rates, including the prime rate, which determines the rates on variable-rate loans, such as credit cards, lines of credit and other products.
What does this mean for Members?
You will see a rate change to the products listed below. Please refer to your Agreement and Disclosure Statement for specific information on how your loan or credit card is affected.
When will Members see changes to rates for new and existing loans?
June 15, 2022 (0.75%) Fed Rate Decision
| Loan/Credit Card Type | Rate Change for Existing | Rate Change for New Loans/Credit Cards Begins |
|---|---|---|
Special Curriculum Loan | July 1, 2022 | June 22, 2022 |
| Higher Education Loan (School Employees) | July 1, 2022 | June 22, 2022 |
| Home Equity Line of Credit (HELOC) | July 21, 2022 | June 22, 2022 |
| Inspire Mastercard® | August 1, 2022 (Based on your statement cycle) | June 22, 2022 |
| Rewards Mastercard | August 1, 2022 (Based on your statement cycle) | June 22, 2022 |
| School Employee Mastercard (School Employees) | August 1, 2022 (Based on your statement cycle) | June 22, 2022 |
| Line of Credit (Legacy Schools Financial Members) | August 1, 2022 | Not Available |
| Signature Line of Credit (Legacy Schools Financial Members) | August 1, 2022 | Not Available |
| Student Line of Credit (Legacy Schools Financial Members) | August 1, 2022 | Not Available |
| Loan Type | |
|---|---|
| Special Curriculum Loan (School Employees) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | June 22, 2022 |
| Higher Education Loan (School Employees) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | June 22, 2022 |
| Home Equity Line of Credit (HELOC) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 21, 2022 |
| Rate Change for New Loans/Credit Cards Begins | June 22, 2022 |
| Inspire Mastercard® | |
| Rate Change for Existing Loans/Credit Cards Begins | August 1, 2022 (Based on your statement cycle) |
| Rate Change for New Loans/Credit Cards Begins | June 22, 2022 |
| Rewards Mastercard | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 (Based on your statement cycle) |
| Rate Change for New Loans/Credit Cards Begins | June 22, 2022 |
| School Employee Mastercard (School Employees) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 (Based on your statement cycle) |
| Rate Change for New Loans/Credit Cards Begins | June 22, 2022 |
| Line of Credit (Legacy Schools Financial Members) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | Not Available |
| Signature Line of Credit (Legacy Schools Financial Members) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | Not Available |
| Student Line of Credit (Legacy Schools Financial Members) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | Not Available |
May 4, 2022 (0.50%) Fed Rate Decision
| Loan/Credit Card Type | Rate Change for Existing Loans/Credit Cards Begins | Rate Change for New Loans/Credit Cards Begins |
|---|---|---|
Special Curriculum Loan | June 1, 2022 | May 12, 2022 |
| Higher Education Loan (School Employees) | June 1, 2022 | May 12, 2022 |
| Home Equity Line of Credit (HELOC) | June 21, 2022 | May 12, 2022 |
| Inspire Mastercard® | July 1, 2022 (Based on your statement cycle) | May 12, 2022 |
Rewards Mastercard | July 1, 2022 (Based on your statement cycle) | May 12, 2022 |
| School Employee Mastercard (School Employees) | July 1, 2022 | May 12, 2022 |
| Line of Credit (Legacy Schools Financial Members) | July 1, 2022 | Not Available |
| Signature Line of Credit (Legacy Schools Financial Members) | July 1, 2022 | Not Available |
| Student Line of Credit (Legacy Schools Financial Members) | July 1, 2022 | Not Available |
| Loan Type | |
|---|---|
| Special Curriculum Loan (School Employees) | |
| Rate Change for Existing Loans/Credit Cards Begins | June 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | May 12, 2022 |
| Higher Education Loan (School Employees) | |
| Rate Change for Existing Loans/Credit Cards Begins | June 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | May 12, 2022 |
| Home Equity Line of Credit (HELOC) | |
| Rate Change for Existing Loans/Credit Cards Begins | June 21, 2022 |
| Rate Change for New Loans/Credit Cards Begins | May 12, 2022 |
| Inspire Mastercard® | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 (Based on your statement cycle) |
| Rate Change for New Loans/Credit Cards Begins | May 12, 2022 |
| Rewards Mastercard | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 (Based on your statement cycle) |
| Rate Change for New Loans/Credit Cards Begins | May 12, 2022 |
| School Employee Mastercard (School Employees) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | May 12, 2022 |
| Line of Credit (Legacy Schools Financial Members) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | Not Available |
| Signature Line of Credit (Legacy Schools Financial Members) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | Not Available |
| Student Line of Credit (Legacy Schools Financial Members) | |
| Rate Change for Existing Loans/Credit Cards Begins | July 1, 2022 |
| Rate Change for New Loans/Credit Cards Begins | Not Available |
Is the federal funds rate expected to fluctuate again this year?
It depends on how the economy is performing. The Federal Open Market Committee (FOMC) will meet multiple times this year to assess interest rates and the current environment.
Does this mean rates on deposit products will also be increasing?
We always strive to maintain very competitive rates to help Members save. The federal funds rate is just one factor we consider when determining if we will increase dividend rates. You can find our current rates on our website.