Fynanz Inc., a financial technology company that develops customized private student lending solutions and powers the cuStudentLoans.org private student loan marketplace, has marked a milestone, partnering with its 80th credit union to power its student lending platform.
Sandia Laboratory FCU has partnered with Fynanz Inc. to be the provider of a turnkey private student lending solution for its 61,000 members. The program is tailored to the product and credit requirements of the Albuquerque-based CU.
"The private student lending solution for Sandia Laboratory Federal Credit Union is a custom program," said Vince Passione, Fynanz CEO/founder. "The team at Sandia is currently working with our sales and implementation organization on defining the program parameters. This customer solution will allow the credit union to develop a specific program that is suitable for their members, which will include pricing-both rate and index, credit criteria, payment options while in school, as well as a number of borrower benefits once the student graduates. "
Robert Chavez, executive vice president/chief operating officer of the $1.5 billion CU is pleased to be able to offer new student lending options for its members.
"The Fynanz programs offer more competitive interest rates and a wider variety of features than we're able to provide internally," Chavez said. "We think this partnership will be a win-win situation both for members and for the credit union."
Before partnering with Fynanz, Sandia Laboratory FCU had a private student lending program that enabled students to borrow up to $40,000 for college expenses, Passione said.
Fynanz is now the exclusive student lending solution for 16 customized credit union programs, along with 64 credit union partners that are part of the cuStudentLoans.org marketplace through the EdAccess private student loan offering, which pools credit union funds to share loan risk and increase market reach.
Perhaps what makes Fynanz's student lending program unique, and what has led to the company now having 80 CU lending partners, is that it offers its credit union partners a simple and cost-effective way to give their members private student loans, Passione said.
"Our unique technology platform provides an underwriting solution that utilizes classic credit criteria along with the student's academic performance and class standing," Passione said. "In addition, Fynanz was one of the first servicers to initiate an in-school payment program that allows the borrower to start paying down some of the interest while in school and begins building good repayment habits early for these students."
When Fynanz works with credit unions as their exclusive student lending solution, it works very closely with the CU partners on program development, rollout and implementation, Passione said.
"The relationship is very collaborative where the credit unions offer suggestions regarding program enhancements and product changes," he said. "Our marketing programs are very extensive and we do spend quite a bit of time with our partners in development of both borrower- and school-marketing initiatives."
With Fynanz's CU partners that are part of the cuStudentLoans.org marketplace through the EdAccess private student loan offering, the program is a little different.
"This program is a cooperative program that has brought together over 60 credit unions across the county who are offering the same EdAccess Private Student Loan," Passione explained. "The program's underwriting and pricing is exactly the same and is managed by the student-lending CUSO. This CUSO is made up of credit union executives who have experience in private student lending and offering their expertise to their peers in order to gain broad awareness for credit unions with existing and new members who are searching for a private student loan. To date the program has brought over 3,000 new members to these participating credit unions."