The year in student lending: Key learnings from 2024

This year, more Americans are pursuing college degrees. And for those of us who have spent a large chunk of our careers helping provide affordable higher education financing, that’s not a surprise. According to the National Student Clearinghouse (NSC) Research Center, undergraduate enrollment for fall 2024 increased 3 percent compared with fall 2023.

Despite the overall growth, freshman enrollment is declining, down 5 percent from this time last fall according to NSC research. This decline is most significant at four-year colleges that serve low-income students, but freshman enrollment is down across all income levels. While some of this drop could be attributed to issues with the rollout of the revamped Free Application for Federal Student Aid (FAFSA), could access to more affordable private student loans help bolster those numbers?

Paying for higher education is one of the biggest financial challenges a credit union member can face. Often, it’s the very first loan young adults take out, with their parents serving as co-applicant. And it’s a critical point along their financial journey. For credit unions seeking new ways to attract and retain younger members, offering affordable education financing is a key connection point.

While many factors impact overall enrollment trends, we believe that access to affordable financing shouldn’t be one of them. More than 700 credit unions nationwide currently offer some type of education lending product. Your credit union has an opportunity to provide affordable and flexible funding for college and technical career pathways.

Whether your cooperative is focused on refreshing its current program or implementing a new one, offering the right mix of student lending solutions should be part of your 2025 plans.

With the average credit union member’s age hovering around 53, it’s likely you have a strong member segment of families with college-age children. And if your community or field of membership includes local colleges or universities, offering more affordable financing solutions could be a no-brainer. Your members are already seeking education financing solutions, so why not keep their loans within your credit union’s portfolio?

Overall, cooperatives tend to offer lower rates and fewer fees on lending products. Industry student lending solutions are no exception. Credit unions can also offer more flexibility through a private education line of credit solution, which allows families to apply once and secure funding for their entire college career without needing to reapply each year.

In addition to traditional four-year degrees, there’s an increasing demand for employees in high-paying skilled trades nationwide. If there are training programs for aviation maintenance, commercial pilots, nurses, or energy trades within your community, there may be an opportunity to provide financing for these additional career pathways. Not only are these relationships beneficial for your credit union, but they could also help fill employment gaps within your community and open new doors for your members.

Rolling out a program doesn’t have to be difficult or costly; an experienced CUSO partner like Student Choice provides customizable plug-and-play solutions with no need to hire additional credit union staff or worry about expensive technology integrations. In fact, the Student Choice team can even have your program up and running in about 30 to 45 days. From establishing program parameters to technical and marketing support, this private education offering involves a low lift for a high return. Contact us to learn more about how Student Choice can make it simple to offer profitable student lending solutions that benefit your current and future members.