How many of your members’ households include students bound for college this fall? The answer is probably more than you think! Fall 2025 undergraduate enrollment is projected to increase over last year, with 19.57 million undergraduate students nationwide.
And with rising price tags, millions of those students will need funding assistance. According to the latest figures from the Education Data Initiative, the average in-state student attending a public 4-year institution and living on campus spends $27,146 for one academic year. The average private, nonprofit university student spends $58,628 per academic year living on campus—$38,421 of it on tuition and fees.
Where will your members turn for help?
Credit unions have an opportunity to help guide their members through the increasingly complex and highly stressful college financing process. If your cooperative isn’t offering college financing solutions, your members are going elsewhere to find what they need—whether it’s an online fintech or the bank down the road. These are young adults heading off on their own for the first time, likely taking out their very first loan, and beginning a life-long financial relationship—somewhere other than your credit union.
An opportunity to welcome profitable, new members and offer flexible solutions
Based on a recent TransUnion analysis of borrower data from Student Choice client credit unions, a private student loan is typically the very first trade taken out by these young adults. And for credit unions looking to build long-term relationships with the next generation of members, within 13 years of opening their private education loans, 81% of student loan borrowers took out an auto loan; 60% took out a credit card; and 48% took out a mortgage. If these young adults start a relationship with another financial institution when they take a student loan, they’re likely to fulfill future needs there as well.
Credit unions can step up to provide a unique college funding opportunity and build the foundation of a relationship that lasts for decades. Offering an education line of credit that allows students and families to establish their line—even if they’re unsure of the amount they may need, and then return later to draw necessary funds—is especially important right now. Uncertainty surrounding the Department of Education and federal student loans is causing stress for many families as they finalize their plans for the 2025-26 academic year.
Supporting members & communities beyond the 4-year degree
In addition to traditional higher-education financing, a growing number of credit unions are experiencing significant growth in career education funding. In-demand career pathways such as aviation, nursing, and energy trades often may not be eligible for traditional lending options, including federal student aid. This leads to a funding gap that credit unions are in a unique position to fill.
Getting started is simple & stress-free
CU Student Choice offers one-of-a-kind solutions, such as a private education line of credit that offers tremendous convenience to borrowers and is truly unique in the marketplace. With no implementation fees and no need for additional credit union staffing, the Student Choice student lending program offers a low lift for a high return. Contact us to learn more about how Student Choice can make it simple to offer customized student lending solutions that benefit your current and future members.
