Student loans are growing6 of 7Since it launched in May 2008, the Credit Union Student Choice service organization has grown from seven credit union partners offering student loans to 165, according to Mike Weber, the organization's vice president of marketing. So far in the 2010-2011 academic year, participating credit unions have originated more than $210 million in loans, compared to a total of approximately $158 million for 2009-2010. Weber says the big jump in annual loan originations owes mainly to the spike in the number of affiliated credit unions.After the U.S. government took over processing of all federally backed student loans, the industry had to change how it approached college loans. But Fagan says consumer adoption of credit union student loans has been strong."When banks started shutting down some of their lending practices, (student) loans were a natural fit for credit unions as they tried to get that next-generation consumer to join," he says.« Back to the 2011 Credit Union Checking Study. Related Articles:Credit unions, small banksBanking at credit unions5 mobile banking must-havesJoin a credit union?Related Links:Pros, cons of credit unionsGet a credit union card?Credit unions faring wellMobile banking for you? advertisement
Since it launched in May 2008, the Credit Union Student Choice service organization has grown from seven credit union partners offering student loans to 165, according to Mike Weber, the organization's vice president of marketing. So far in the 2010-2011 academic year, participating credit unions have originated more than $210 million in loans, compared to a total of approximately $158 million for 2009-2010. Weber says the big jump in annual loan originations owes mainly to the spike in the number of affiliated credit unions.
After the U.S. government took over processing of all federally backed student loans, the industry had to change how it approached college loans. But Fagan says consumer adoption of credit union student loans has been strong.
"When banks started shutting down some of their lending practices, (student) loans were a natural fit for credit unions as they tried to get that next-generation consumer to join," he says.
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