CUNA Supports Increase of Federal Loan Limits
Credit Union National Association (CUNA) wrote to the House Financial Services Committee (HFSC) in support of legislation what would provide the National Credit Union Administration (NCUA) board the flexibility to increase credit union loan maturity limits. The letter was sent ahead of the HFSC hearing on student loan debt.
“While most student loans originate with the government, more and more credit unions are finding ways to support student borrowers through private loans. However, one barrier for many federal credit unions from entering the student lending sector is the 15-year loan maturity limit,” the letter reads. Except for mortgage lending, Federally-chartered credit unions are prohibited by statute from making loans with maturity limits in excess of 15 years … The ability to set a longer loan maturity for Federal credit union loans would provide more opportunities for education that is more affordable.”
H.R. 1661 would grant the NCUA board flexibility to increase federal credit union loan maturities past 15 years. Currently only one state, Oklahoma, has a similar restriction on state credit unions, and there is no such limit for banks.