Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
UW-Oshkosh moves to direct lending on student loans
OSHKOSH, Wis. (2/19/10)--The University of Wisconsin-Oshkosh announced this week it is changing its federal student loan process by requiring students borrow from the federal government--not from banks or credit unions. The new policy will begin this summer. In a press release, the university said the move is prompted by its joining "thousands of other U.S. higher education institutions in the Federal Direct Student Loan Program." Chancellor Richard H. Wells said the university compared two student loan programs, the Federal Family Educational Loan Program and the Federal Direct Student Loan Program, before its decision. "Many banks are no longer servicing student loans or are restricting who will receive loans," he said. The program "ensures funds are available for students," he added, saying that with direct lending, funding is secure, fees and interest rates are more favorable and processing is streamlined. As a result of the change, UW-Oshkosh students with federal Stafford, Grad PLUS and Parent PLUS loans will borrow funds from the federal government instead of from multiple private banks and credit unions. Students participate in the program by filling out a Free Application for Federal Student Aid (FAFSA), signing an electronic master promissory note and participating in online entrance counseling. Changes in federal student loan processes the past three years have prompted some credit unions to get out of the student loan business. Others have joined private student loan networks to fill the gaps between federal student loans and students' needs. Two companies that have proved popular with credit unions entering the private student loan market are Fynanz Inc., which powers cuStudentLoans.org, a private lending marketplace, and Credit Union Student Choice, a credit union service organization. Fynanz currently serves 30 credit unions in its turnkey program, and Credit Union Student Choice announced its 100th credit union client this week.
Other Resources

RSS print
News Now LiveWire
NCUA re-schedules start of tomorrow's closed meeting to 9 a.m. ET. Open meeting still at 10 a.m. ET.
13 hours ago
.@lisamurkowski @SenatorEnzi @SenJohnBarrasso are latest to weigh in on NCUA risk-based capital proposal. See #NewsNow tomorrow for more
14 hours ago
Now up on News Now: Fed stays course on taper, interest rates http://t.co/6DntsW58vA
16 hours ago
Positive performance indicators and the potential for rising interest rates in @TheNCUA 's latest economic update. http://t.co/yptPbIGvnU
19 hours ago
The @CFPB has launched a nationwide effort to provide financial education. http://t.co/sF3FXHpv3k
19 hours ago