Need for Diversification Spurs Interest in Student Loans
Offering private student loans can be advantageous to a credit union in many ways, and more and more CUs are taking an interest in the product.
"I have not been at a credit union strategic planning meeting in the last nine months where student lending has not come up. It has become a major topic of strategic conversation because students need the loans and credit unions need the business," said Dennis Dollar, principal partner of credit union consulting firm Dollar Associates.
Fynanz added a financial literacy component to its offerings last month, when it announced the release of a program to syndicate its College Resource Center to all of its credit union partners. By including a small snippet of code on their websites, credit unions can host dynamic, automatically updated content designed to help students navigate the financing process.
"If you give them good advice, a loan is more than a product, it's a solution that will help the student in the future," said Ken O'Connor, director of student advocacy at cuStudentloans.org.