HERNDON, Va. -- The $1.5 billion Northwest Federal Credit Union is the latest to sign on with Credit Union Student Choice, a newly launched private student loan network entity.

Northwest is not new to offering private student loans to members. However, after offering student loans strictly on a referral basis for several years, Northwest Federal Credit Union is opting for an entirely new model to better serve their members, according to CUSC.

"By passing students and parents off to a third party, we were losing control of the relationship and could not ensure high quality member service or deliver the full member value we know is possible," said Colleen Daly, vice president of lending at Northwest FCU. "The Credit Union Student Choice model allows us to set our own credit criteria, customize the product and pricing, and retain the full value streams that come from an active lending relationship with our member. All without increasing our staffing or taking on any undue risk."

Launched earlier this month by seven credit unions and backed by several noted CUSOs, CUSC now serves eight credit unions.