Charlie Mac, LLC, has negotiated numerous pricing discounts for this product and ensures a no cross-selling policy.

Transcription

1 Acquainted... 1

2 Getting Acquainted Getting Acquainted CU Student H.E.L.P. (Higher Education Loan Program) is a complete education finance solution designed to bridge the gap between available federal loan dollars, and the actual cost of higher education. Charlie Mac, LLC, a subsidiary of U.S. Central specializing in the purchase of auto loans and jumbo mortgages, has partnered with CampusDoor/Lehman Brothers, to offer a special student loan program to all credit union members. CampusDoor was founded in 1995 and has become an innovative leader in education finance capitalizing on a foundation of experience, technical excellence and unmatched customer service. CampusDoor is headquartered in Carlisle, PA, has 155 employees and has originated over 100,000 loans to date. In 2006, CampusDoor was acquired by Lehman Brothers and is now a wholly-owned subsidiary of Lehman Brothers Bank. Loans are originated by CampusDoor, funded by Lehman Brothers, and serviced by American Education Services (AES). AES is one of the nation s largest student loan servicers and has been in business since CampusDoor has over 3,200 approved universities, community colleges, and trade schools representing greater than 82% of the enrolled student population in the U.S. and is well known among financial aid offices. CampusDoor not only offers private education loans for undergraduate, graduate and vocational school students, they also provide comprehensive resources for high school students to help them plan and pay for college. CampusDoor private loans provide additional funding when other financial aid does not fully cover the total cost of higher education, including tuition, room and board, and other incidental expenses incurred by attending college. Charlie Mac, LLC, has negotiated numerous pricing discounts for this product and ensures a no cross-selling policy. For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 2

3 Market Dynamics Market Dynamics For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 3

4 Market Dynamics Market Dynamics Trend of Private Loan Growth Private loans are the fastest growing segment in student lending Growth in Financial Aid ($bn) $17.3 $1.3 $8.1 $ % CAGR 8.7% CAGR 9.1% CAGR $18.6 $ Academic Year Academic Year Federal Loans Federal Grants Private Loans 9 For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 4

5 CU Student H.E.L.P. Products CU Student H.E.L.P. Products Loans Available For Vocational Schools 2-Year Schools 4-Year Schools Undergraduate Students Graduate Students Incidental Expenses Methods of Applying Online (24/7) Over 95% of Applications are Submitted Online Over the Phone 877.CUEDLOAN (8:30a 8:30p EST) Paper Application Via Mail For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 5

6 CU Student H.E.L.P. Loan Program CU Student H.E.L.P. Loan Program Competitive Pricing Origination fees are as low as 0%. Interest rates are as low as Prime minus 0.70%. Interest is capitalized once at the time of repayment. Eligibility A borrower has to be enrolled at least half-time and be at least 18 years of age (19 in Nebraska, 21 in Puerto Rico & Mississippi). Mississippi residents under the age of 21 may borrow with written consent from a parent or guardian. The borrower must also be a U.S. citizen or eligible non-citizen holding a valid I-151 or I-551 card. A school must offer a minimum of an associate s degree and meet federal default rate criteria. See Approved Institutions Listings For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 6

7 CU Student H.E.L.P. Loan Program CU Student H.E.L.P. Loan Program Flexible Loan Amount Loan amounts are available up to the total cost of education with a lifetime aggregate maximum of $250,000. Borrowers can apply for an incidental loan of $500 to $3,000 to pay for educational expenses not covered by traditional student loans. The incidental loan can be a maximum of 30% of the requested loan amount, up to $3,000, with a minimum of $500. Please note that if the financial aid office reduces the loan amount at certification, the amount of the incidental loan may be reduced or possibly eliminated. Funds may be applied up to 8 months in the past or 18 months in the future. Industry-leading Grace Period After Graduation This is the only private loan to offer a 12-month grace period after graduation (industry standard is 6 months), allowing graduates time to find a job and get settled before payments begin. For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 7

8 CU Student H.E.L.P. Loan Program CU Student H.E.L.P. Loan Program Affordable Repayment Terms Repayment period is up to 25 years. Graduated repayment options are available. No prepayment penalty. Borrower Benefits Borrower may request a 0.50% interest rate reduction for auto-debit and another 0.50% rate reduction after 48 consecutive on-time payments. No cosigner is required if the borrower is creditworthy and over 18. A borrower may request that a cosigner be released after 36 consecutive on-time payments (pending borrower s approved credit). A forbearance period of up to 12 months is available. For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 8

9 Key Benefits to Credit Unions Key Benefits to Credit Unions Minimal Risk Loans are underwritten by CampusDoor. Loans are funded by Lehman Brothers Bank, FSB. Lehman Brothers Bank is the lender of record. Loans are serviced by American Education Services (AES), one of the nation s largest student loan servicers, which has been in business since Maintain & Expand Member Relationships Credit union will retain customer ownership and loyalty. Program provides customized reporting for comprehensive tracking. Offering student loans can cement your relationship with the next generation of customers. For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 9

10 Co-branded Page Co-branded Page CampusDoor has designed an interactive customer interface for your members Your Credit Union Logo Here! For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 10

11 Co-branded Page Co-branded Page The website contains Extensive educational material Loan Types Rates and Fees Borrower Benefits Loans 101 First the FAFSA (Free Application for Federal Student Aid) Why Student Loans? Government Loans PLUS vs. The Private Loan The Cycle: Payout to Payoff Repaying Student Loans FAQ Tools Glossary College Life For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 11

12 Contact Information & Next Steps Contact Information & Next Steps Kansas Corporate Credit Union Contacts Sarah Holt, Business Development Representative Ext. 122 Circe Gleeson, Marketing Manager Ext. 106 Next Steps Review the Getting Started Packet Complete & Sign the contract Provide baseline information to CampusDoor for system set-up Upload link and private loan content to your website Determine marketing collateral needs and work with CampusDoor to set up branded materials Coordinate training for branch associates Develop member marketing plan Include inserts and messaging in statements Deploy campaigns Develop ATM messaging Upload internet banners and content Start Offering CU Student H.E.L.P. to your valuable Gen-Y Members! For Credit Union Use Only Not For Distribution CU Student H.E.L.P. Getting Acquainted 12