Credit unions are committed to helping students finance their education through private student loans while large banks are backing out of the student lending business, according to Fynanz, a CUNA Strategic Services alliance provider that serves credit unions with customized student lending programs and the cuStudentLoans private student loan marketplace.
New York City-based Fynanz gained about 75 credit union partners in the past year, bringing its total credit union partner number to more than 180. Meanwhile, lending giants U.S. Bank and JPMorgan Chase have eliminated and reduced their private student lending programs, respectively, Fynanz emphasized. Going forward, JPMorgan Chase will only make private student loans for existing customers, the bank giant has said.
“Private student lending has experienced significant change over the past several years,” said Wes Millar, senior vice president for CUNA Strategic Services, a program jointly owned by CUNA and state credit union leagues. “Credit unions have created a strong foundation in student lending during this period and will remain steadfast in supporting students and families nationwide.”
More than 125 Fynanz credit union partners participate in cuStudentLoans, a program that’s managed and designed by participating credit unions using common underwriting and pricing, Fynanz said.
cuStudentLoans features the cuScholar Private Student Loan and the cuGrad Private Student Loan Consolidation.
“Students today face challenges in higher costs and less aid when financing their higher education,” said Alice Stevens, chair for cuStudentLoans LLC. “Credit unions are happy to answer the call and help these students reach their educational goals through responsible lending.”