RALEIGH, N.C. — Collegiate Funding Solutions is helping credit unions bridge the gap between baby boomers and the young adult market by redefining "college planning."
"Regardless of their income, what parents want is a way to help reduce their out-of-pocket college costs," said CFS President Roger Lorelle. "The typical thinking is that college planning only means 'saving for college' and most people aren't even funding their retirement adequately so another savings plan isn't something they are interested in."
Incorporated in 1998 as a consulting service primarily for financial advisors Lorelle says he recognized early on the opportunity to serve a growing niche.
"Everyone is concerned about how to pay for college and there are so many ways to reduce college costs that most people aren't aware of," said Lorelle. "It was a great idea but the reason why so few professionals specialize in this area is because while there is a ton of public information out there it is scattered everywhere so it becomes a very labor intensive process."
Teaming up with a local financial service planner, Lorelle started developing a dynamic expert system that could be used as a tool in creating customized plans.
"We wanted this to be a dynamic solution that included a questionnaire that would ask the right questions to ensure the right solutions for each individual," said Lorelle. "Instead of just saying parents need to save a certain dollar amount to send their kids to college we go a step further and identify all the possibilities that actually reduce the cost of college."
The result is a Web-based system that can calculate customized plans, strategies and suggestions designed to minimize college costs.
"It is like the TurboTax of college planning," said Lorelle. "Schools are a business and our job as a smart consumer is to empower ourselves to get the best possible deal on our out-of-pocket total. CFS helps consumers do just that."
A longtime credit union member, Lorelle says partnering with credit unions seemed a natural fit considering their focus on serving members.
"All the credit unions I've spoken with are talking about the 'baby boomer' effect and a need to find new clients. College planning is a natural link between boomers and the younger generation," said Lorelle. "This helps deliver a unique value-added service to members."
With a focus on ease of use, the solution is just a click away from a CFS-designed banner based on the client's home page. From there members are directed to a co-branded site that explains the program where they answer an interactive questionnaire that generates a free report. Free reports cover everything from how much the school will cost, and how much the candidate is expected to pay, to determining how much of a decrease in out-of-pocket expenses can be expected and how much in tax savings can be achieved with a coordinated savings and funding strategy. Members can also opt for a more comprehensive customized report for a fee. In addition, CFS works closely with clients to provide marketing materials and promotions.
"It is very much a collaborative effort and we are here to support them and make it as easy as possible so whether it is a banner, statement insert, or a Webinar, we'll help to find different ways to leverage what we have here to make the buzz stronger," said Lorelle. "But ultimately it is up to the credit union to spread the word."
So far Fort Belvoir Federal Credit Union and Synergy One Federal Credit Union are the first to offer the service, but Lorelle says more CU partnership announcements will be made within the next few months.
–mdigiovanni@cutimes.com
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