Credit unions that offer the EdAccess student loan from Fynanz have announced they are joining together to create a new CUSO, CU Student Lending LLC.
The CUSO will manage the EdAccess private student loan product. The loan is designed for credit unions to pool funds and share the loan risk. There are currently 46 credit unions that offer the loan.
"The CUSO came together to best make sure the credit unions had full control over the pricing and structure of the loan. All the credit unions participating were interested in being representing by CEOs and credit union executives that have the background to make underwriting decisions," said Jim Merrill, senior vice president of sales at Fynanz.
The EdAccess loan also has a new late rate of 2.75%, which is currently the lowest starting loan rate listed on StudentLendingAnalytics.com. Once the student enters repayment and pays back 10% of the principle balance, he or she also qualifies for a one percentage point rate reduction.
"We're pleased that we are achieving our goal of setting the standard for private student loans nationwide by offering an extremely competitive loan rate to help credit unions of all sizes meet the growing educational financing needs of their student members," said Thomas O'Shea, chairman of CU Student Lending, LLC and president/CEO of Aspire Federal Credit Union.