Private student loans account for just 0.2% of the U.S. credit union loan portfolios, according to Callahan & Associates, but student loan CUSOs and credit unions that offer student loans believe they're a worthwhile addition to any CU's product suite, citing potential relationships with young members as a major benefit.

Tapping in to the college student market is an obvious motive for credit unions with a student loan offering, but how does the product affect their bottom lines? Experts from student loan CUSOs CU Student Choice and CU Campus Resources and one CU Campus Resources credit union partner said student loans are a good investment, but ultimately, the loans pay off in the form of young member cultivation.

The complex student loan making process entails certifying loans through schools, arranging for tuition disbursement and abiding by government regulations. While it's possible for credit unions to develop student lending programs on their own, most partner with a CUSO, which assist CUs with student lending aspects such as technology, paperwork, underwriting, pricing and educational resources for students and parents. By working with a CUSO like CU Student Choice or CU Campus Resources, credit unions can make student loans without the added cost or hassle of creating their own program, the CUSOs say.