WASHINGTON (4/24/13)--A pair of key credit union concerns, member business lending (MBL) and student loans, and the Credit Union National Association's views on those issues, received prominent press coverage in two high-profile outlets on Tuesday: Fox Business and The Huffington Post.
In a foxbusiness.com story, CUNA Executive Vice President of Strategic Communications and Engagement Paul Gentile noted the help that credit unions could provide to a still-recovering economy if allowed greater MBL authority.
The Fox Business piece noted credit unions as one way small business owners can go "out-of-the-box" and obtain funds when banks turn them down. While banks are unwilling to do a lot of the loans needed today to stem the tough economic times, "credit unions do true small business loans," Gentile said in the piece. Banks are reluctant to make loans for less than $200,000. However, Gentile said, the average credit union business loan is right around that level: Credit union business loans average $217,000.
Most small business owners need the loans to cover smaller costs like equipment and inventory updates, Gentile told Fox Business. Others, he said, need the extra funds to keep their business running if consumer spending ebbs.
CUNA's recently released student lending survey also received coverage in a Huffington Post piece on student debt issues. That survey found that nearly half of high school seniors in the U.S. don't know how much money they will need for college.
The HuffPo story also includes other CUNA findings: 22% of those surveyed said they will owe between $11,000 and $50,000 when they graduate, and 15% expected debt of $10,000 or less. (Use the resource link to read April 17 News Now story: Survey: 50% Of High School Seniors Don't Know Student Loan Costs.)
While 70% of the CUNA survey respondents were confident they will receive a high-paying job upon graduating, the Huffington Post story painted a more complicated picture: Nearly 9% of recent college graduates are unemployed, and 18.3% are underemployed, according to an Economic Policy Institute survey cited in the same story.
For the Fox Business and Huffington Post items, use the resource links.