Student loans are thefastest-rising form of consumer debt in the U.S. and likely willremain that way for years to come. A new white paper from theFilene Research Institute wants to help credit unions grab agreater slice of what has become a $1.2 trillion pie.

In a market overwhelmingly dominated by government-guaranteedloans, private student loans offered by banks and credit unionscomprise just 8% of market share, with six banks capturing themajority of the private loan market, according to study authorMatthew Lieber, a political science instructor at Madison Collegein Madison, Wis.

Only one in 10 credit unions held any student loans in 2013,totaling $2.6 billion across 643 institutions, Lieber wrote in“Helping Members Navigate College Costs,” released on May 4. Altogether, credit unions accounted for just 3% of the $92.6billion in total private student loans outstanding and 0.2% of allU.S. student loans, the study said.

“Given the economic, financial and technological trendsdocumented in this report, it makes sense for these credit unionsto keep a toe in the water of private student lending,” Lieberexplained, “to offer personalized college financing services tomember-borrowers that leverage third-party resources andnavigators, enable financially sound decisions and deliverhigh-value loan products.”

But while an increasing number of student loans are managedonline, not all credit unions use their websites to promote studentloans as effectively as they could, the study said.

Some credit unions lack a student loan portal and websiteapplication capabilities, while others fail to provide a detailedset of FAQs about college finance to aide in memberdecision-making, the study noted. College-related financialcalculators also were absent from many sites – another feature thatcan help members the make the right decision.

Before launching or updating a credit union student loanwebsite, Lieber suggested the institution take into account thefollowing four aspects in creating an effective online tool.

1. Clarity

Many websites present sound content, but then obscure it withflashy graphics, distracting advertisements and general visualoverload.

Currently, no credit union presents the details that creditunions need to focus on in clear and accessible language, accordingto study participant Ericka Gorman, director of credit productsstrategy for the $8 billion Alliant Credit Union in Chicago.

The challenge will be to present necessary information clearlyand succinctly, preferably at seventh- or eighth-grade readinglevels, the study noted.

2. Integration

College selection is inherently tied to finance, noted studyparticipant Brian Ducharme, president of the $426 million MIT Federal Credit Union in Cambridge, Mass., and boardchairman for Credit Union Student Choice, one of several studentloan CUSOs. Unfortunately, existing online tools generally fallshort of a holistic approach that encompasses the relatedchallenges of career planning, college searches and financing.

Too many credit union websites are geared toward members whohave already decided they want a loan. To broaden the site'susefulness, the study suggested addressing the topic of paying forcollege first, then providing access to credit union loan rates andterms.

3. Analyticcapability

Online navigation tools are increasing in application andcomplexity, but still fall short in their desired depth and range.The ultimate state-of-the-art tool would be an application thatwould aggregate average graduates' salaries by job field andgeographic location, suggested Audie Marzo, assistant vicepresident for the $362 million USC Credit Union in Los Angeles.

Such a navigation tool would enable borrowers to makebetter-informed decisions on the college and major best suited fortheir desired career and the financial strategy that would serve tounderwrite their education, the report said.

4. Effectiveengagement.

Despite the shortcomings noted, there are still many excellenttools out there to help credit unions better serve membersinterested in financing higher education.

“The content is out there, but the problem is no one is lookingat it,” Scott Patterson, president/CEO of Credit Union Student Choice in Wash., D.C., said.

The secret, Patterson noted, is to boost member engagement withthe credit unions' websites. Credit unions should make use of allavailable formats, varied means of delivery and an emphasis oninnovation. Web tools that better engage members include shortvideo clips, video games such as Financial Football or viralmarketing bids through social media, possibly adapting an ALS “icebucket”-type strategy. There's no silver bullet to ensure greatermember engagement, Patterson said, just the knowledge thatcontinuous innovation will increase engagement possibilities.