After roughly four years away from the market, the $391 million USC Credit Union said Friday it will start offering student loans again.
The 58,000 member, Los Angeles-based credit union had offered loans to students at the University of Southern California until the 2009-2010 school year when concerns about the Great Recession and the possible performance of the existing portfolio led the cooperative to suspend the program, according to Audie Marzo, assistant vice president at USC CU.
“There was concern about the portfolio's performance and so the board of directors suspended it,” Marzo explained. “But then when we saw the portfolio was performing very well and that we had very low delinquency, we decided to get back into it. We decided to go with a CUSO in order to get it up to speed more quickly.”
USC CU launched its renewed program with CU Campus Resources, a Madison, Wis.-based CUSO that uses a student lending platform developed by Cology LLC, an end-to-end private student loan origination and repayment servicing firm in Scottsdale, Ariz.
“We are extremely fortunate to be a part of a great institution like the University of Southern California,” said Gary Perez, CEO of USC CU. “It goes without saying that the addition of this product for the student segment of our membership, our Trojan family, is long overdue. We have positioned ourselves as the low price leader on campus and we want the students to realize all of the financial resources the credit union offers, now and long after graduation.”
Mike Long, president/COO of CU Campus Resources, said he's confident that USC CU will once again become one of the student lending leaders in the credit union industry.
“As the cost of education continues to increase each year, members are in need of financing options,” Long said. “Our clients offer a wide range of loan programs to their members through our flexible technology platform. With the addition of their student loan, USC Credit Union is well positioned to help their members with a full suite of products.”
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