WEST PALM BEACH, Fla. - Despite the ongoing shake-up of the federal student loan market, CU student loan experts suggest there are some important opportunities for credit unions in this arena and offered the following advice for those considering getting into the game:
Court the schools. Even in today’s market, most schools have options.
Offer a total package. A number of CUs have bundled products they believe appeal to college students and meet their special needs with everything from credit cards to financial literacy programs. The schools want to know that you are interested in doing more than just making money off these students.
There are three keys to successful federal student lending: servicing, servicing, servicing.
Dedicate resources. Several student lending experts interviewed for this article noted they have someone on staff whose job it is to go do “hand holding” at the schools, attend local and national student lending conferences, etc.
Be prepared. “This is going to have some effect on your ROA,” noted Dana Rawlings of Smart Financial CU. (c) 2008 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved.http://www.cujournal.com http://www.sourcemedia.com
