DES MOINES, Iowa -- Reaching out to ease the liquidity squeeze in the student loan market, the Iowa Credit Union League said last week that member CUs are prepared to provide funding for Iowa college students through the Iowa Student Loan Liquidity Corp.
In a statement, the league said a group of perhaps 10 CUs are currently partnering with the agency "to create a strong contingency plan to provide student loans even if national conditions do not improve soon."
Moreover, said the league, CUs will help mitigate the impact "of this potential shortage in Iowa by holding federally guaranteed student loan assets on their books."
The Iowa agency, like others elsewhere, has had difficulty selling secondary loans because of tightening conditions.
"Already, credit unions have made commitments to fund several million dollars in student loans from their portfolio," said the league, noting that CUs are committed to retaining future loans with the option to have ISL purchase the loans when funding becomes available.
Iowa CUs remain "pleased to be able to provide Iowa's students with the financial support they need to fulfill their dreams," concluded Pat Jury, league president/CEO.
