First Carolina Corporate Credit Union has announced a new partnership with student loan provider CampusDoor to bring a private-label student loan program to participating credit unions.
“Our members told us they wanted a program where the credit union actually funds the loan,” David Brehmer, CEO of the Greensboro, N.C., corporate said in an interview. The CampusDoor program – which Brehmer indicated would be open to any credit union, not just to First Carolina members – allows that.
“This program will complement existing student loan programs,” added Brehmer. Other, popular student loan programs operating through credit unions often effectively outsource the loan, removing the credit union from the actual funding.
“This CampusDoor program can be a useful part of a credit union’s loan portfolio,” said Brehmer, who indicated many credit unions are looking for profitable, safe loans and this may be an option for them.
In a statement, Brehmer said, “With increasing tuition costs, limited federal aid and tighter family budgets, a growing number of students are seeking assistance to fund college expenses. Through the First Carolina-CampusDoor program, credit unions can support these efforts, making it possible for more members to receive a higher education.”
This loan program has been designed by Carlisle, Pa.-based CampusDoor and Silver Sword Capital Partners for credit unions that want to fund their own branded education financing program to generate and hold private student loan assets. It is available to the credit union community only through First Carolina.
Brehmer’s statement continued: “CampusDoor has processed more than $10 billion in private student loan applications, assisting some 1.2 million borrowers while establishing relationships with 3,200 schools nationwide.
"We’re confident in CampusDoor’s commitment to the credit union industry. This company is focused specifically on the education financial marketplace, and has the unmatched knowledge and technology credit unions need to help their members achieve their educational goals.”