A Message to College Bound Students & Parents

AS TRADITIONAL STUDENT LOAN LENDERS STEP BACK, SARATOGA’S COMMUNITY FEDERAL CREDIT UNION STEPS UP


In today’s financial world, there is no debate about the dismal state of student lending. In spite of government intervention to shore up federally backed loans, the last two years have been marked by a mass exodus of many traditional lenders from the student lending market. Caused in large part by cuts in subsidies, ongoing market turmoil and restricted access to capital, this exodus has left students and families scrambling for high-quality educational financing like never before.

According to Don Denofio, CEO of Saratoga’s Community FCU, while the availability of federal loans has come under intense scrutiny, consumers who are forced to rely on private student loans may actually feel the biggest pinch. “The cost of college education has risen dramatically over the last 15 years. This has led to an ever-increasing gap between what scholarships and federal loans cover and the actual cost of attendance,” said Don. “For a college student attending a public school for four years, that gap has grown to more than $30,000.  And for those attending a private school, the gap jumps to well over $100,000. Private student loans fill that gap, and with so many lenders leaving the market, students will not only find these loans harder to come by, but they will likely be faced with higher rates and fees.  This is why Saratoga’s Community FCU is committing $6 million to Saratoga County residents for higher education.”

In hopes of bringing superior economic value to the marketplace and meeting the educational financing needs of credit union members and local consumers, in June, 2010 Saratoga’s Community FCU joined with several of the nation’s leading credit unions to offer a new private lending solution called Credit Union Student Choice.

“With the turmoil in the marketplace, we felt it was imperative that credit unions, as not-for-profit balance sheet lenders with a unique ability and willingness to collaborate, get into the private student lending business," said Don. "Credit unions exist first and foremost to meet the needs of their membership, not to maximize profit by selling off loans to Wall Street. We are very proud to offer a private student loan solution that will deliver real value and meet a pressing need.”

Don also points out that many lenders take advantage of consumers’ lack of knowledge about education financing options. "The website we've built will help consumers make better decisions by providing in-depth information on all of the ways to finance a college education as well as calculators that will actually show them the numbers." To access this information and learn more about Saratoga’s Community FCU’s private student loan solution, visit www.saratogafcu.studentchoice.org.