NEW YORK, April 17, 2012 /PRNewswire/ -- Credit unions nationwide remain committed to assisting students and families with higher-education financing through private student loans, while traditional banks have recently been reducing their footprint in student lending. More than 180 credit unions are providing private student loans through Fynanz, a CUNA Strategic Services alliance provider, which provides student loan marketing, education, origination, and repayment solutions for lenders.
Recent announcements by Chase Bank and US Bank to reduce and eliminate their respective private student loan programs is further downsizing to an industry that services hundreds-of-thousands of students each year. Chase Bank will continue to originate private student loans but only for existing Chase customers. Private student loans are used by students to bridge the funding gap in their higher-education financing after all federal options have been exhausted.
"Private student lending has experienced significant change over the past several years," said Wes Millar, SVP of CUNA Strategic Services. "Credit unions have created a strong foundation in student lending during this period and will remain steadfast in supporting students and families nationwide."
The majority of credit unions on the Fynanz platform participate in the cuStudentLoans program, which is a private student loan program that is managed and designed by participating credit unions using common underwriting and pricing. The program, which features the cuScholar Private Student Loan and the cuGrad Private Student Loan Consolidation, includes loan participations to enhance risk mitigation.
"Students today face challenges in higher costs and less aid when financing their higher-education," said Alice Stevens, Chairman of cuStudentLoans, LLC. "Credit unions are happy to answer the call and help these students reach their educational goals through responsible lending."
cuStudentLoans is a leading network of credit unions offering private student lending options to students and families nationwide. Formed in 2010, CU Student Lending, LLC is comprised of over 125 progressive credit unions that built a member-responsive private student loan program using a common underwriting and pricing platform. The program, which consists of both the cuScholar Private Student Loan and cuGrad Private Student Loan Consolidation, includes loan participations to enhance and mitigate risk.