Thank you for sharing!

Your article was successfully shared with the contacts you provided.

Possible changes in the student lending marketing outlined in President Obama’s 2010 budget proposal will not impair the strong opportunities credit unions have has private student lenders, according to Jon Jeffreys, president of Credit Union Student Choice.The Washington-based student lending CUSO has 24 credit union partners that have funded more than $23 million in loans since the CUSO was formed in May 2008.The plan proposed by President Obama includes expanding the size of existing federal loan programs, a provision that would allow the administration to lend directly to students and the end the Federal Family Education Loan program by the beginning of the 2010-11 school year.The Federal Family Education Loan program provides subsidiaries to banks and other private lending companies to provide Stafford loans, unsubsidized Stafford loans, federal PLUS loans and federal consolidation loans.“Shifting all federal student loans into the government’s direct-loan program will obviously have a huge impact on lenders who participate in the FFEL program, but it underscores the tremendous opportunity that exists for credit unions in private student lending,” said Jon Jeffreys, president of CU Student Choice. “The demand for private student loans, which help students fill the financing gap that exists after federal loans have been exhausted, continues to rise. And the need for lenders who can provide fair loan choices to America’s college students has never been greater.”The average interest rate on all private student loans disbursed by the CUSO and its credit union partners is 5.875%.“We see a tremendous opportunity for credit unions in private student lending and feel strongly they can leverage their cooperative structure and balance-sheet-lending capability to deliver superior value to students,” said Mike Weber, vice president of marketing for CU Student Choice.The CUSO plans to add 25 more credit unions to its network over the next three months.“I’m confident we will continue bringing unmatched value to borrowers,” Jeffreys said. “We also look forward to helping those credit unions who have been active in the FFEL program, as they will be forced to look for new business solutions in replaces those federal student loans.”In January, the CUSO helped MIT Federal Credit Union develop a student loan program for the MIT Sloan School of Management to replace Citibank as a lender.–[email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.