OVERLAND PARK, Kan. (11/9/09)--Student CU Connect CUSO LLC reported that more than 5,400 students have received $40 million in loans to finance their education through a partnership between Student CU Connect and ITT Technical Institutes, a technology post-secondary education program. The credit union service organization (CUSO) was founded seven months ago by seven credit unions to help students receive education loans from credit unions. Student CU Connect specifically works with ITT students. The loans help pay tuition and other expenses not covered by student aid. Credit unions make a three-year commitment to fund a pre-specified amount of student loans each calendar quarter and an ownership capital contribution to the CUSO. They also are required to maintain an active relationship with a local ITT campus. Eli Lilly FCU, Indianapolis, is the originating entity and holds 10% of the loans. ITT Educational Services guarantees the repayment of loans that are charged off above a certain percentage, based on annual dollar volume. The other founding credit unions include:
* Bellco CU, Greenwood Village, Colo.; * CommunityAmerica CU, Lenexa, Kan.; * Workers’ CU, Fitchburg, Mass.; * Directions CU, Toledo, Ohio; * Veridian CU, Waterloo, Iowa; and * Credit Union of America, Wichita, Kan.
The Rochdale Group, Inc., a credit union service provider, administers the program.