Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

Products Archive

Products

CU Student Choice bucks private student lending trend

 Permanent link
WASHINGTON (8/19/08)--A new credit union service organization (CUSO) is finding success as a new entrant in the private student loan market. Credit Union Student Choice, launched in May, announced it has approved more than $25 million in private student loans for the upcoming academic year. "We could not have picked a better time to help credit unions successfully enter the private student loan market," said Jon Jeffreys, president of Credit Union Student Choice. "We've enabled credit unions to fill the void for students and families during a time of critical need, as many banks and finance companies have been forced to leave the market," Jeffreys said. "Credit unions are uniquely positioned to excel in private student loans, and we're proving that point," he said, noting that "more than 1,500 students have already been approved for a low-rate, zero-fee CU Student Choice loan with their credit union this season." Sixteen credit unions in 13 states offering the loans through the CUSO's services. With the turnkey solution, credit unions can offer their own full-service private student loan program without adding staff. Credit unions' balance-sheet lending capabilities places them in a power position to gain market share, form long-term relationships with young adults and schools, and provide a valuable financial service when other lenders are struggling with unfavorable market conditions, he said. "Most private student lenders rely on secondary market access to fund loans," Jeffreys said. "Due to the mortgage meltdown and ensuing credit crunch, that market has completely evaporated, forcing many lenders to stop funding new loans or significantly raise their fees and rates." Credit unions partnering with Student Choice are finding the loans are a significant source of Gen Y membership growth. Early results indicate that although they were eligible for membership, more than 80% of the student applicants were not currently members of the credit union. The CUSO's product features zero origination fees, lower interest rates, in-school deferred payment, co-signer release, and graduated repayment option. It is structured as a line of credit, allowing students to make multiple draws during their college years from a single application.

Products and Services briefs (08/18/2008)

 Permanent link
* MURRIETA, Calif. (8/19/08)--The Symitar Educational Conference and Technology Expo will take place Aug. 25-28 in San Diego. Credit union attendees also are invited to a TraceSecurity after-party event Aug. 26 with American Idol contestants William Hung and Renaldo Lapuz. TraceSecurity is a CUNA Strategic Services provider of security compliance and risk management solutions ... * FORT WORTH, Texas (8/19/08)--Fourteen credit unions partnered with CU Members Mortgage to provide members with home loan programs. Recently joining credit unions include: Meadows CU, Arlington Heights, Ill.; Caswell CU, South Burlington, Vt.; Natco CU, Richmond, Ind.; Memorial Herman CU, Houston; SPCO FCU, Houston; Florida Commerce CU, Tallahassee, Fla.; Community South CU, Chipley, Fla.; Russell County (Minn.) FCU; Yakima Valley CU, Yakima, Wash.; Hoosier Farm Bureau CU, Indianapolis; Champlain Valley CU, Essex Junction, Vt.; Hawaii USA FCU, Honolulu; AEA FCU, Yuma, Ariz.; and USC CU, Los Angeles ... * WEST CHESTER, Pa. (8/19/08)--CorePROFIT Solutions signed on new credit union clients this year. The credit unions signed two- or three-year agreements for CorePROFIT’s Behavior-Based costing and profitability solutions. Credit unions include: HarborOne CU, Brockton, Mass.; Virginia CU, Richmond, Va.; ORNL FCU, Oak Ridge, Tenn.; Fort Mill, S.C.; DuPont Community CU, Waynesboro, Va.; Members Choice CU, Houston; and Comstar FCU, Clarksburg, Md ...