Capture Student Loan Borrowers in Five Steps

Although only 9.1% of credit unions offer student loans, this line of business grew 13.1% from year-end 2012 to September 2013, according to CUNA’s economics and statistics department.

Offering these loans allows credit unions to diversify their loan portfolios, generate income, and provide a valuable and affordable service to the coveted young adult market.

But capturing student loans isn’t a passive activity. LendKey—a CUNA Strategic Services alliance provider— suggests five steps to capture student loan borrowers:

1. Target both students and parents. Communicate your marketing message to the right audience. Segment your list into potential college students and their parents.
2. Engage young members with social media. College attendance is a huge topic for young members, and it presents great engagement opportunities via social media. Boost views and likes for your credit union fan page by offering college-related content that matches up to your marketing calendar.
3. Teach financial literacy. Providing complimentary build trust with your members and generate loans down the road when students are ready to apply.
4. Help your community. Local high schools are searching for ways to help students and families with college financial planning. Contact the guidance department to introduce yourself and your program.
5. Don’t lose business to banks. Other financial institutions will advertise aggressively to this young demographic, but they can’t offer the exceptional service or borrower benefits that credit unions can.