New York (4/18/12)--Credit unions nationwide remain committed to assisting students and families with higher-education financing through private student loans, while traditional banks have recently been reducing their footprint in student lending. More than 180 credit unions are providing private student loans through Fynanz, a CUNA Strategic Services alliance provider, which provides student loan marketing, education, origination, and repayment solutions for lenders.
Recent announcements by Chase Bank and US Bank to reduce and eliminate their respective private student loan programs is further downsizing an industry that services hundreds-of-thousands of students each year, said Fynanz. Chase Bank will continue to originate private student loans but only for existing Chase customers.
Private student loans are used by students to bridge the funding gap in their higher-education financing after all federal options have been exhausted.
"Private student lending has experienced significant change over the past several years," said Wes Millar, CUNA Strategic Services senior vice president. "Credit unions have created a strong foundation in student lending during this period and will remain steadfast in supporting students and families nationwide."
The majority of credit unions on the Fynanz platform participate in the cuStudentLoans program, which is a private student loan program that is managed and designed by participating credit unions using common underwriting and pricing.
The program, which features the cuScholar Private Student Loan and the cuGrad Private Student Loan Consolidation, includes loan participations to enhance risk mitigation.