Latest news with #StudentChoice
Business Upturn
10 hours ago
- Business
- Business Upturn
Credit Unions Sound the Alarm on Student Loan Procrastination — Urge Families to Lock in Flexible Line of Credit Before Fall Deadlines
Washington, DC, June 18, 2025 (GLOBE NEWSWIRE) — CU Student Choice, a leading provider of education financing solutions, is renewing its nationwide outreach to help students and families avoid last-minute borrowing pitfalls and long-term debt. Backed by a network of more than 200 credit union partners, the flexible, multi-year education line of credit offers a smart, reusable alternative to traditional private student loans, just as tuition deadlines loom and financial decisions become most critical. Flexible Education Line of Credit The initiative, offered through the Student Choice platform, aims to give families an alternative to traditional private student loans, which often force borrowers to guess their total cost of attendance upfront and reapply every year. 'Many families wait until the last minute and feel forced into taking whatever loan they can get,' said Rich Kump, President and CEO, UMassFive College Federal Credit Union. 'This approach creates stress and leads to overborrowing. Our education line of credit removes that pressure by providing a reusable safety net so students can borrow as needed, when needed.' A Safety Net, Not a Sales Pitch Unlike most private loans that lock borrowers into one lump-sum loan amount year by year, the Student Choice model allows you to draw on funds over multiple academic years* That means students can adjust borrowing based on scholarships, financial aid, or changes in academic plans — avoiding interest on funds they do not need. Even if students don't plan to borrow right away, having the line of credit in place gives them a financial safety net they can tap into if or when it's needed. The credit union-backed program also offers: One-time application for multiple years of borrowing* No origination fees or prepayment penalties Support from real credit union representatives Repayment terms of up to 25 years for affordability This unique model has already helped 132,000 families finance their college education more confidently and has recently been expanded to support more than 2,000 colleges and universities. A Timely Warning for Procrastinators A recent report from Sallie Mae shows that more than 50% of families wait until July or later to finalize student financing — often leading to rushed decisions and higher loan balances. Traditional private loans, often promoted through paid aggregator sites, do not always provide the flexibility or transparency needed for smart borrowing decisions. 'We built this program for families who don't want to overborrow but also can't afford to wait,' said Kump. 'It's not about pushing debt. It's about doing the right thing and putting students in control.' Rising Awareness Amid Growing Concern As federal student loan headlines dominate the news, from stalled forgiveness debates to rising interest rates on new federal loans – families are facing a confusing and often frustrating borrowing environment. Many students don't realize until it's too late that federal loans alone may not cover the full cost of attendance, and traditional private loans often lead with unobtainable, low teaser rates, rigid terms, and limited protections. Amid this uncertainty, credit unions are stepping up. Backed by decades of member-first values, these not-for-profit institutions are offering a smarter, more transparent alternative – one that's designed around flexibility, and long-term financial wellness. With an education line of credit, students and families can secure funding without being forced into borrowing more than they need, offering a calmer path forward during an increasingly chaotic time. * Subject to credit approval and annual review. Must meet the school's Satisfactory Academic Progress (SAP) requirements. About CU Student Choice CU Student Choice is a credit union service organization (CUSO) that helps credit unions strengthen their role in education finance. Through private loan solutions and borrower education, Student Choice enables institutions to offer fair, flexible student lending that meets real-world needs. Since 2008, more than 132,000 families have accessed funding through Student Choice credit union partners. To learn more, visit NMLS #2123582 Press inquiries CU Student Choice Mike Weber [email protected] 563-599-1193 1001 Connecticut Avenue NW, Suite 1001, Washington, DC 20036
Yahoo
26-05-2025
- Business
- Yahoo
Credit unions challenge broken student loan system with revolutionary line of credit approach
Washington, DC, May 26, 2025 (GLOBE NEWSWIRE) -- CU Student Choice, a credit union-owned organization that helps credit unions deliver private student loan solutions, announced expanded access to its flexible education line of credit product. The announcement comes as student debt continues to weigh heavily on millions of families. Traditional private loans often force students to estimate the full cost of their education upfront, a tough ask given how often financial situations and academic paths change midstream. Many borrowers end up on online lender marketplaces, dominated by national brands willing to pay big dollars for leads. But Student Choice's user-friendly CUSelect Finder Tool at helps students and families discover line of credit options from credit unions that often go unseen on major comparison sites. 'The conventional private student loan is fundamentally broken,' said Scott Patterson, President and CEO of Student Choice. 'Students are forced to guess their total expenses before the semester even begins, often leading to overborrowing or, worse, coming up short when unexpected costs arise. Our education line of credit model represents a complete paradigm shift — apply once, draw only what you need, when you need it.' Traditional Loans Fail to Match Real Student Experiences Most private student loans follow a rigid structure that doesn't reflect how students actually move through college. When classes shift, family budgets change, or unexpected costs pop up, traditional loans often offer little room to adapt — leaving borrowers overextended or stuck without options. A Credit Union Model Designed to Flex In today's education landscape, uncertainty is the new normal. Families are facing shifting rules around federal loan programs, unclear policies, and mixed messages. Meanwhile, students still need reliable, flexible ways to cover tuition now — especially when timing and access are critical. That's where the credit union line of credit stands apart. Student Choice's model allows students to apply once and access funds over multiple academic years, borrowing only what's needed each term*. It reduces the need to reapply, helps avoid excess borrowing, and gives students the ability to adjust if their plans or needs change. Funds are available quickly when they're needed most. 'It's time we stop pretending that traditional student loans work,' said Patterson. 'This model flips the script. One application, flexible access, and the freedom to borrow on your own terms. It's built for real life — not for lender convenience.' The Real Cost of Inflexible Loans When students take out more than they need just to avoid reapplying later, they often end up paying interest on funds they never use. The line of credit approach helps prevent that. It gives students the flexibility to borrow only what's necessary, when it's necessary — and if their situation changes, the loan can adapt with them. Traditional lenders often design products to maximize profit. Credit unions are offering something different — a borrower-first approach based on trust, flexibility, and long-term value. A New Tool to Help Borrowers Explore Their Options To help more families find these alternatives, Student Choice recently updated its Finder Tool at The CUSelect Finder Tool makes it easy for users to compare personalized lines of credit—from multiple credit unions the user is likely eligible to join—based on school, timing, and borrowing needs, with no credit check to compare and no obligation to apply. 'As borrowing decisions grow more complicated and private loan marketing becomes more aggressive, the CUSelect Finder Tool gives students a faster, clearer path to smart options — making informed decisions right from the start and helping them avoid feeling overwhelmed,' added in 2008 by several of the nation's leading credit unions and credit union service organizations (CUSOs), CU Student Choice works in partnership with credit unions to deliver innovative solutions that help members responsibly overcome the increasing challenge of higher education affordability. With cooperation and a keen focus on the future, the CUSO's programs have allowed hundreds of credit unions to deliver fair-value private education and refinance loans with corresponding financial education to more than 100,000 Unions Challenge Broken Student Loan System Press inquiries CU Student Choice Mike Weber mweber@ 563-599-1193 1001 Connecticut Avenue NW, Suite 1001, Washington, DC 20036 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
The Guardian
17-03-2025
- Politics
- The Guardian
T-levels are a disaster – and young people are suffering because ministers won't admit it
What's in a name? With T-levels, quite a lot. By choosing a title that sounded a lot like A-levels – with T for technical – the reformers behind England's latest post-16 qualification sent a message that the days of vocational education's second-class status were over. The two-year courses, launched in 2020 (and not adopted in the rest of the UK), were supposed to boost applied learning and the prospects of the more than 50% of young people who don't study for A-levels followed by a degree. There are more than 20 T-level options, ranging from early years education to engineering, with each student choosing only one. But nearly five years on, the courses haven't caught on. Fewer than 3% of 16-year-olds enrol for a T-level, with the vast majority preferring either A-levels, older 'applied general' qualifications (which include BTecs), or some combination. Last year, about 7,000 students qualified with a T-level. The dropout rate is higher than for other 16-18 courses, with almost a third of those enrolled in 2022 giving up. The figures for a T-level foundation course, intended as a stepping stone, are even worse. In 2021-22, only 8% progressed as intended. The picture is incomplete partly because ministers decided, in January, to postpone adding T-level data to performance tables. Behind the scenes, a row is raging over what happens next. The original plan was to scrap other vocational qualifications once T-levels were up and running. Further education and sixth-form colleges soon realised this was a terrible idea. In 2021, a Protect Student Choice campaign was launched with a warning that if BTecs were axed, 155,000 teenagers would be left without any options at all. You would think rising concern about young people not in education or work, and particularly the growing number of teenagers and young adults on disability benefits, would make post-16 education a priority. Last week, Sir Keir Starmer spoke of a 'wasted generation'. But Labour's policy in opposition, which was to 'pause and review' the situation, was ditched after the election. Instead the skills minister, Jacqui Smith, postponed the defunding of older qualifications and relaxed the rules around the T-level's compulsory 45-day work placement. But the central problem remains: T-levels are narrower and harder than the courses they are meant to replace, making them unsuitable for students without a specific job in mind, and also for those who passed GCSEs with grade 4s or 5s rather than 6s or higher. College leaders have repeatedly challenged ministers over which courses they think such students should take. They are waiting for an answer. It is not an accident that faith in T-levels transcends party loyalties. The commission that came up with them was appointed by a Conservative, Philip Hammond. But its leading figure, Lord Sainsbury, is an influential Labour donor (and the chancellor of Cambridge University). A non-partisan approach to curriculum reform is, generally, a good thing. The danger otherwise is that each new government rips up the efforts of the one before. But in this case the problem appears to be the reverse: groupthink. Even the education select committee failed to break the spell. Its chair, Robin Walker MP, accused Rishi Sunak's government of 'prioritising saving face over … the interests of young people' after a report highlighted evidence that T-levels do not balance 'rigour and accessibility' and noted that more than £1bn had been spent. Another review, from the charitable Education Policy Institute, proposed breaking down T-levels into smaller components. It also pointed out that economically disadvantaged pupils, and the growing number with special needs and disabilities, would be disproportionately affected by the removal of more accessible alternatives. T-levels will be examined by MPs again as part of a new inquiry into further education, and also in Prof Becky Francis's curriculum review. The danger is that the issue doesn't gain the kind of traction that would force a proper rethink. That's because aside from A-levels, sixth-form studies are seen as a niche subject. Arguably, this attitude is the most elitist thing about education in England – more than the role of private and grammar schools, more than the dominance of a handful of highly selective universities. It also helps explain why the reforms haven't worked. The experts commissioned to reshape the curriculum were clever people with good intentions. But in a democratic society, where a high premium is placed upon personal choice, more attention should have been paid to what teenagers want and are capable of. Because in the end, that is the test: no one can force them. What happens now will depend partly on campaigners. Lord Sainsbury continues to be active on the pro-T-level side. A charity he founded, the Gatsby Foundation, told MPs that rival qualifications must be defunded to ensure T-levels' success. Last year, Gordon Brown was enlisted in support. But the Protect Student Choice campaign has backers too, including hundreds of college principals, MPs with colleges in their constituencies, and peers who care about FE. To put things right, it will be necessary to admit what went wrong. Far from sorting out vocational education, the T-level saga has turned into the latest illustration of a longstanding problem, namely the poor treatment of colleges by the educational powers that be. Anyone seeking further proof only needs to consider the decision not to give college teachers in England the same 5.5% pay rise as school teachers last year – a disgraceful choice by a Labour government that ought to be trying to narrow the school-college gap. As one college principal told me, it is as if the highly able people in charge of education don't fully grasp that the 155,000 pupils that the sector is most concerned about really exist – or think that if they and their teachers only tried harder, their grades could be nudged up. The reality, it is worth remembering, is that fewer than a quarter of GCSEs in England are graded higher than a 6. Of course ambition is vital, but any teacher will tell you that realism matters too: students who lose confidence in their ability quickly lose interest. All young people need courses, pitched at a level they can manage, to provide them with knowledge and interests to support and enrich their lives – as well as helping them find jobs later on. It's time to tell the truth: T-levels don't fit the bill. Susanna Rustin is a Guardian journalist
