Corporate Central Credit Union today announced a new student loan program–offered in partnership with Sallie Mae and made available through Corporate Central members–that is designed to help students graduate with less debt.
Key to the so-called Corporate Central Credit Union Smart Option Student Loan by Sallie Mae is that students pay interest while in school. This allows them to graduate with less debt and to incur reduced obligations. According to Corporate Central, a typical freshman will save 30 to 50 percent on finance charges over the life of the loan. Typically, too, loans will be repaid five to eight years faster after graduation compared to the standard 15 year interest deferred student loan, said Corporate Central in a statement.
In announcing the availability of this product to member credit unions, Corporate Central CEO Robert Fouch said: “At a time when many families are struggling to pay for higher education and credit unions are looking to provide assistance, this program enables our members to offer much-needed secondary education funding without incurring any costs or balance sheet risks.”
Fouch continued: “Not only is this a free program to our members, but they will be able to realize tangible earnings from the originated student loans while helping their members prudently and responsibly fund higher education.”