COLUMBUS, Ohio – Eleven credit unions on Thursday will unveil a plan to commit $150 million to a new student lending program through Credit Union Student Choice.
Credit unions backing the initiative, to be known as Ohio Student Choice, plan to publicize the availability of funds at a news conference in the Atrium of the Ohio Statehouse.
Credit Union Student Choice is a program that was developed by Callahan & Associates and has been adopted by 130 credit unions so far. Participating credit unions have approved 14,000 loans for more than $176 million during the two years of the program, according to Jon Jeffreys, director of CU Student Choice.
Under the Ohio program, the credit unions will originate the loans and CU Student Choice will do the processing. “We’re doing the back end of it,” Jeffreys told Credit Union Journal yesterday.
Students enrolled at least half-time in a four-year-degree-granting program at a public or private non-profit school are eligible for CU Student Choice Loans. Once approved for a CU Student Choice loan, students can borrow from $1,000 up to the cost of attendance, less any other financial aid awarded. With a Student Choice loan, a student receives a line of credit of up to $75,000, which can be accessed as needed throughout the college years. The Student Choice loans feature several repayment options that can be selected depending on a student's particular situation, including fully deferring payment while in school, making interest-only payments during school, and immediate repayment of principal and interest.
The launch of the new private loan program comes as Congress is eliminating the guaranteed student loan program, a favorite of credit unions and banks for many years.
Credit unions participating in the program are BMI FCY, Cinco Financial CU, Directions CU, Day Air CU, Kemba CU, Kemba Financial CU, Seven Seventeen CU, Ohio Educational CU, Mid State Educators CU, Midwest CommunityFCU and Wright-Patt CU.
