SAN ANTONIO -
The loans, which are being marketed through U.S. Central's corporate members, will be originated by Campusdoor, a subsidiary of Lehman Brothers.
As many as 11 corporates have begun marketing the product and more than a half-dozen credit unions have begun offering it to their members. Among them are Fort Lee FCU, Connects CU, Deer Valley CU, and Altier CU, which went live on Nov. 1.
The program was unveiled at CUNA's annual Lending Council conference.
The private loans, called CU Student HELP (for Higher Education Loan Program), will provide lower-cost funding for students looking to supplement federally guaranteed loans or those not eligible for federal loans, according to Tracy Sniscak, client relationship manager for Campusdoor, Carlyls, Penn.
The product will help credit unions provide the private student loans-a growing market-without having to invest in infrastructure, she noted. The relationship with Campusdoor will also allow them to keep the loans off their books, thus eliminating any risk.
There are no set up fees, except for those credit unions that want co-branded marketing materials.
"This is also a good way for credit unions to build relationships with younger people, the so-called Gen Yers," Sniscak said.
Charlie Mac was created by U.S. Central in 1999 to provide a secondary market conduit for jumbo mortgages, and expanded to include auto loans.
