INDIANAPOLIS — Eli Lilly FCU added a new group to its field of membership as part of an effort to launch the new student lending CUSO called Student CU Connect.
The CUSO is designed to help ITT Technical Institute students find private lending resources (CU Journal, April 27). But part of the issue was ensuring the school's 162,000 students-and all future students-have access to a credit union, and through that, access to Student CU Connect's low loan rates.
"We thought it was a great opportunity for ourselves and other credit unions," said CEO Lisa Schlehuber. "This particular situation gives us the opportunity of bringing new members into the credit union with a different background than our standard member."
The $777-million institution began moving away from its 75-year history as a single sponsor credit union just three years ago and Schlehuber sees expanding Eli Lilly FCU's charter to include ITT Tech students at all 106 campuses nationwide as a perfect way to continue that trend.
"This allows us to have a diversity of membership that we didn't have the opportunity to serve prior to this year," she added.
More than a half-dozen credit unions have joined Student CU Connect, which started operations in March. As the CUSO continues to expand, Eli Lilly expects to shed some of the members that it brings in through the lending program. Schlehuber said that students will initially join Eli Lilly to be eligible for the loans but the credit union will eventually give up the rights to the new members so cooperatives near each one of their individual campuses can better serve them.
"The credit unions that are in their back yards, that are involved in the local campuses, should have a much higher success opportunity to work with those members and their families to meet their financial needs," the CEO said.
Even before Eli Lilly FCU expanded its FOM greatly, Schlehuber said the need for private student lending was already present in its existing membership. That need has only increased as the membership field has grown.
"We've had a big focus on [student lending] for at least a year and a half as we see more and more financial institutions pulling out of the area," Schlehuber added. "They have made their business decisions to withdraw from that market, whereas we see this as a tremendous opportunity. These are people trying to better themselves, to provide better for their families. That is the type of person we want to do business with."
"I truly believe this is a great opportunity to provide services to a population that really is looking to partner with a financial institution to improve their lots in life. The numbers will fall out from there," Schlehuber added.
