Student loans are the fastest-rising form of consumer debt in the U.S. and likely will remain that way for years to come. A new white paper from the Filene Research Institute wants to help credit unions grab a greater slice of what has become a $1.2 trillion pie.

In a market overwhelmingly dominated by government-guaranteed loans, private student loans offered by banks and credit unions comprise just 8% of market share, with six banks capturing the majority of the private loan market, according to study author Matthew Lieber, a political science instructor at Madison College in Madison, Wis.

Only one in 10 credit unions held any student loans in 2013, totaling $2.6 billion across 643 institutions, Lieber wrote in “Helping Members Navigate College Costs,” released on May 4.  Altogether, credit unions accounted for just 3% of the $92.6 billion in total private student loans outstanding and 0.2% of all U.S. student loans, the study said.

“Given the economic, financial and technological trends documented in this report, it makes sense for these credit unions to keep a toe in the water of private student lending,” Lieber explained, “to offer personalized college financing services to member-borrowers that leverage third-party resources and navigators, enable financially sound decisions and deliver high-value loan products.”

But while an increasing number of student loans are managed online, not all credit unions use their websites to promote student loans as effectively as they could, the study said.

Some credit unions lack a student loan portal and website application capabilities, while others fail to provide a detailed set of FAQs about college finance to aide in member decision-making, the study noted. College-related financial calculators also were absent from many sites – another feature that can help members the make the right decision.

Before launching or updating a credit union student loan website, Lieber suggested the institution take into account the following four aspects in creating an effective online tool.

1. Clarity

Many websites present sound content, but then obscure it with flashy graphics, distracting advertisements and general visual overload.

Currently, no credit union presents the details that credit unions need to focus on in clear and accessible language, according to study participant Ericka Gorman, director of credit products strategy for the $8 billion Alliant Credit Union in Chicago.

The challenge will be to present necessary information clearly and succinctly, preferably at seventh- or eighth-grade reading levels, the study noted.

2. Integration

College selection is inherently tied to finance, noted study participant Brian Ducharme, president of the $426 million MIT Federal Credit Union in Cambridge, Mass., and board chairman for Credit Union Student Choice, one of several student loan CUSOs. Unfortunately, existing online tools generally fall short of a holistic approach that encompasses the related challenges of career planning, college searches and financing.

Too many credit union websites are geared toward members who have already decided they want a loan. To broaden the site's usefulness, the study suggested addressing the topic of paying for college first, then providing access to credit union loan rates and terms.

3. Analytic capability

Online navigation tools are increasing in application and complexity, but still fall short in their desired depth and range. The ultimate state-of-the-art tool would be an application that would aggregate average graduates' salaries by job field and geographic location, suggested Audie Marzo, assistant vice president for the $362 million USC Credit Union in Los Angeles.

Such a navigation tool would enable borrowers to make better-informed decisions on the college and major best suited for their desired career and the financial strategy that would serve to underwrite their education, the report said.

4. Effective engagement.

Despite the shortcomings noted, there are still many excellent tools out there to help credit unions better serve members interested in financing higher education.

“The content is out there, but the problem is no one is looking at it,” Scott Patterson, president/CEO of Credit Union Student Choice in Wash., D.C., said.

The secret, Patterson noted, is to boost member engagement with the credit unions' websites. Credit unions should make use of all available formats, varied means of delivery and an emphasis on innovation. Web tools that better engage members include short video clips, video games such as Financial Football or viral marketing bids through social media, possibly adapting an ALS “ice bucket”-type strategy. There's no silver bullet to ensure greater member engagement, Patterson said, just the knowledge that continuous innovation will increase engagement possibilities.