DES MOINES, Iowa — Iowa credit unions, particularly those with a membership base of college students, were scrambling this week to help out a state-run agency impacted by the national liquidity squeeze impacting the student loan market.
In a statement, the Iowa Credit Union League said a group of perhaps 10 CUs are currently "partnering with Iowa Student Loan Liquidity Corporation to create a strong contingency plan to provide student loans even if national conditions do not improve soon."
Moreover, said the league, CUs will help mitigate the impact "of this potential shortage in Iowa by holding federally guaranteed student loan assets on their books."
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The Iowa agency, like others elsewhere, has had difficulty selling secondary loans because of tightening conditions.
"Already, credit unions have made commitments to fund several million dollars in student loans from their portfolio," said the league noting CUs are committed to retaining future loans with the option to have ISL purchase the loans when funding becomes available.
Iowa CUs, remain "pleased to be able to provide Iowa's students with the financial support they need to fulfill their dreams," said Pat Jury, league president/CEO.
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