Removing Barriers Blog

CUNA writes in support of H.R. 1661 prior to HFSC hearing on student loan debt
Posted September 10, 2019 by CUNA Advocacy

Prior to the House Financial Services Committee hearing on protecting student borrowers, CUNA wrote in support of H.R. 1661 in a letter to Chairwoman Waters and Ranking Member McHenry.

If enacted, H.R. 1661 would provide the NCUA board the flexibility to increase federal credit union loan maturity limits. Longer maturity limits for federal credit union loans would allow credit unions to better service members.  The ability to set a longer loan maturity for Federal credit union loans would provide student borrowers across the country with more opportunities for education that is more affordable both in the short and long term.

While most student loans originate with the government, more and more credit unions are finding ways to support student borrowers through private loans. However, one barrier for many federal credit unions from entering the student lending sector is the 15-year loan maturity limit. Except for mortgage lending, Federally-chartered credit unions are prohibited by statute from making loans with maturity limits in excess of 15 years.

H.R. 1661 would grant the NCUA board flexibility to increase federal credit union loan maturities past 15 years. Currently only one state, Oklahoma, has a similar restriction on state credit unions, and there is no such limit for banks.