Experts shared the following other dos and don'ts in regard to student lending:

Don't go it alone. Find a partner (typically a CUSO) to help build a sustainable loan program.
Do educate borrowers before loaning. Student Choice provides individual counseling to members before extending loans. "We actually set up appointments – including evening – to discuss member questions and unique situations so that we can properly counsel on best practices," Jim Holt, chief development officer of CU Student Choice, said.
Don't lend to for-profit schools. Lend only to four-year, not-for-profit colleges with a proven history of low student loan default rates. Most defaults have come from students who borrowed more than they could pay at for-profit schools costing far more than they were worth.
Do require loans to be "certified" by the college's financial aid office (in order to validate enrollment and ensure the loan amount is not more than the cost of attendance minus other financial aid) and then disbursed directly to the school. Nearly all private student loans now follow this practice, which directly correlate to improved loan performance and repayment rates, according to MeasureOne, an industry data group.
Don't overdo it. Build student loans into your portfolio, but Long recommended limiting your exposure to less than 10%.
Do employ prudent, risk-based underwriting that encourages use of a co-borrower. More than 90% of private student loans have co-borrowers, usually a parent or other close relative, according to MeasureOne, an industry data group.
Do build long-term relationships with young borrowers. They are likely to need you again in the future. "We want to be there for each step when it comes to their financial needs, be it buying a car, starting a family or financing a home," Debbie Taverna, DCU's vice president of lending, said.

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