SOUTHBEND, Ind. - With college tuition rising and the economy making it tougher to save, Notre Dame FCU has partnered with College Funding Solutions to offer an online tool to help parents plan for their kids? education.
Notre Dame FCU?s College Planning Service, a product of the Salem, Ore.-based College Funding Solutions, provides detailed information on schools and their costs, and closely analyzes a family?s financial situation. Ultimately, the tool allows parents to craft a realistic plan for college that meets their financial needs, the credit union says.
?The service takes a very accurate look at a family?s ability to pay for college and outlines what they can afford,? said Rick Burden, SVP and chief lending officer.
It?s a free, value-added service the $427-million credit union believes improves member loyalty?and as a byproduct, greater share of wallet.
?We?ve always felt our strength is providing sound financial information to our members,? said Burden. ?And if we do that well, we?ll get the additional products.?
The Time Is Right
With prices for gas and commodities rising, the time is right for the service, Burden suggested. ?America is not saving money. Parents are trying to figure out how to use their current income to pay for their children?s future. Sometimes it simply comes down to a parent saying, ?I don?t have any money saved so I?ll just borrow it.??
Undergraduate tuition at Notre Dame is approximately $35,000 per year, plus another $9,000 for room and board.
By using the service now and setting up the right savings approach, parents won?t get caught without the money they need when it?s time for kids to head off to college, Burden said.
?This service is much more advanced than similar programs that want to know how much money you have and then calculates how much you need to save. It goes in-depth, asking for income tax returns, investments, and where money is saved and in what vehicles. It also takes into account where you want your child to go to school... The analysis report is detailed. I did one for myself and it was 26 pages long.?
The report includes a look at the equity in an individual?s home and suggests a HELOC?and the impact of taking out the loan?if the product fits with the member.
?Here we insert information about whom to contact at the credit union for a home equity loan,? Burden said.
Since launching the service in April, 383 people have visited the site and 51 members have generated a personalized report.
Members access the service through the credit union?s website and a special access code provided through NDFCU?s newsletter and home banking site. The service cost the credit union less than $10,000, Burden said, and it?s hosted by College Funding Solutions. Previously, NDFCU didn?t offer a college planning service, explained CU President and CEO Leo Ditchcreek.
?We were looking for a solution that made sense for our members,? Ditchcreek said. ?There are a lot of planning tools out there that are nothing more than simple math models. In addition to the detailed analysis, our service lets you pick schools and see their tuition. And it addresses a wide variety of lending sources available to parents, like student loans, grants, and scholarships...It?s robust?a college planning service on steroids.?(c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
