In anticipation of education spending cuts that could result from Federal budget negotiations, the nearly 200 credit unions partnered with Washington, D.C.-based student lending CUSO Credit Union Student Choice have pledged $1 billion in higher education financing, the CUSO said.
Credit Union Student Choice President Jon Jeffreys said while it appears the legislative debt ceiling/deficit reduction package includes funding for essential Federal student loan programs such as Pell Grants and subsidized Stafford loans, the CUSO's CU partners' collaborative pledge prepares student borrowers for cuts that could occur in the future.
"There are serious long-term questions," Jeffreys said. "The government will be aggressively looking for additional budget cuts in the coming months and it remains to be seen how educational funding programs could be affected. One thing that is certain, however, is that our credit union partners stand ready to support students, families and universities."
The participating CUs use Credit Union Student Choice's services to provide school-certified private education loans that they can hold on their own books. The CUSO has funded more than $400 million in student loans since its 2008 launch.
"We are thrilled to be part of such an important collaborative commitment to families and schools," said Linda Darling, executive vice president and CFO for the Tampa, Fla.-based, $5 billion Suncoast Schools FCU, a Credit Union Student Choice partner. "Credit unions may not be able to solve all problems stemming from the current federal government fiscal situation, yet, we know through this historic pledge, we can make a difference for many."
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Natasha Chilingerian
Natasha Chilingerian has been immersed in the credit union industry for over a decade. She first joined CU Times in 2011 as a freelance writer, and following a two-year hiatus from 2013-2015, during which time she served as a communications specialist for Xceed Financial Credit Union (now Kinecta Federal Credit Union), she re-joined the CU Times team full-time as managing editor. She was promoted to executive editor in 2019. In the earlier days of her career, Chilingerian focused on news and lifestyle journalism, serving as a writer and editor for numerous regional publications in Oregon, Louisiana, South Carolina and the San Francisco Bay Area. In addition, she holds experience in marketing copywriting for companies in the finance and technology space. At CU Times, she covers People and Community news, cybersecurity, fintech partnerships, marketing, workplace culture, leadership, DEI, branch strategies, digital banking and more. She currently works remotely and splits her time between Southern California and Portland, Ore.
