Page 20 - 2015 Contact Magazine: 3rd Quarter

How Credit Unions Are
Helping Bridge the Gaps
in Student Lending

By Jenna Lennon

Going to college is an exciting time for many students. For others, it’s a
time of financial worry and questions about how they will afford four years
at a college or university.

While many credit unions have not historically offered private student
loans, an increasing number—including several in Michigan—are doing
so with the help of CU Student Choice, a student lending CUSO that

has been in operation since 2008. Student Choice aims to help ease
worries by partnering with credit unions to offer borrowers a struc-
tured line of credit that can be used throughout a student’s time in

school. It is an alternative to taking out federal loans and one specif-
ically designed to help students pay back their loans successfully.

Sheryl Hogle, CEO and director of financial education at Harborlight
Credit Union in Whitehall, says her credit union has had great
success with offering loans through CU Student Choice. She said

only two of Harborlight’s student loan borrowers have failed
to meet the payments since the program launched in 2009.
Harborlight CU currently has $3.9 million in loans out to 151

borrowers, with a line of credit topping out at $45,000. They
have relied mostly on word of mouth to get the buzz going
about the program, along with Hogle doing presentations
at local area high schools.

Student Choice only requires students to apply
once during their time pursuing a four-year degree.
Harborlight only offers loans for bachelor’s degrees,

but participating credit unions have a say in what types
of credit they offer and how much they’d like to lend
out. Hogle was surprised to hear that only 18 credit

unions in Michigan offer student loans through
Student Choice.

“It’s a great program,” Hogle told C o n t a c t . “I think
most credit unions shy away from it because of
the initial cost, but we made our money back
within the first two years of lending. They also
have great customer service. I always get a call
back within the same day, if not the hour.”

20 T hird Q uarter 2016 I Contact