Attracting student borrowers is a difficult task, credit unions say. But they’re exploring a variety of ways to reach that important demographic.
The real challenge is to get the word out and make sure you have the marketing resources, says Ethan Nelson, director of credit administration at Oregon Community Credit Union, Eugene, Ore.
The credit union’s Chris Whittaker, director of lending services, and other credit union student loan specialists say that to reach students, they use a combination of:
|The real challenge is getting the word out, says Ethan Nelson.|
Nationwide, technology-based marketing is becoming more prevalent, credit unions say. Some believe it’s the most effective marketing method, in particular for reaching younger demographics. This parallels financial institutions’ increasing use of social media, e-mail, and websites to communicate with members.
Students in dire need of loans
It’s important that credit unions do reach these younger demographics, however. Today, only 9% of credit union members are ages 18 to 24, and a disturbing 70% of nonmembers in that age group are “not at all familiar” with credit unions, according to CUNA’s 2011-2012 Survey of Potential Members.
And students are in dire need of private loans. As college tuition costs rise and federal financial aid declines, students are desperately looking for other financing options and financial management solutions.
Student loans also might be the start of a long-term relationship with student-members. The average 2009 graduate left school with $24,000 worth of debt. Because average student-loan debt is so high, it takes students a long time to pay back their student loans—and even longer still with today’s struggling economy.
Oregon Community certainly understands the importance of these relationships. That’s why it’s moving cautiously with its student lending services, says Nelson. It’s all about matching students with the right loans.
“We’re not interested in putting out a whole lot of student loans,” says Nelson. “We certainly want to grow [the program] outward from the University of Oregon, but we want to do it carefully.”
Next: A chance to expand
|"The real challenge is getting the word out," says Ethan Nelson.|