In response to the House passage last week of the Obama's administrations plan to replace the Federal Family Education Loan Program, CUSO CU Student Choice notified credit unions that the bill has no impact on private student loans.

In a press release, CU Student Choice Jon Jeffreys said, "The bill obviously has a huge impact on lenders who participated in the Federal Family Education Loan Program, whereby they were able to originate federal student loans. However, it's important to note the distinction between federal and private student loans. While they do share the same bankruptcy exemption as federal student loans, private loans are completely separate from the federal government and are meant to help students fill the funding gap after federal loans have been exhausted. The demand for these loans remains very strong-to the tune of nearly $15 billion this year alone."

For this past peak lending period, Jeffreys said that CU Student Choice credit unions approved more than $100 million in loans.