Dec. 12, 2011


Comments

 
 
 
  • It would help to have an objective view of student lending, not a biased view from a vendor peddling student lending. Mr. Holt needs to realize that if the student walks away from the loan, which I think will happen with more frequency given what has happened with real estate loans, there is no long-term relationship. Credit unions need to assess the risk (and these loans are extremely risky) which should include member churning.
    David Green
     
     
     
  • I appreciate your comment, Mr. Green, and agree in my bias. Yet, I’m also a father with a son heading off to college – like thousands of your members – and will be taking advantage of a private student loan from a credit union as a co-borrower for my son. My wife and I have no plans on walking away from this obligation that also carries bankruptcy protection. What we will walk away from is the high rates being charged by the big bank brands despite our strong FICOs...the scary thought is so many of your members won’t. Collectively, we all need to help educate members to exhaust the most affordable solutions first (grants, scholarships, work study, & federal education loans), and if a remaining gap is present, offer low cost financing in the form of a private education loan. The cost of education is hard enough – adding a high cost loan is salt in the wound. And, doing nothing is well...doing nothing.
    Jim Holt