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in private student lending
             giving                                                            “Not only have we been able to provide

                                                                               hundreds of parents and students with a
                                                                               valuable product they’ve needed, but we’ve
                                                                               also been able to build strong community
                                                                               relationships with local colleges, universities,

 the cReDIT
                                                                               and high schools.”
                                                                                        Teresa Mayer, Vice President, Lending
                                                                                                       NuUnion Credit Union

       they deserve

 Credit Union Student Choice is America’s foremost

 private student loan CUSO – now providing turn-key
 service to nearly 120 credit unions and their nine million      private student lending?
 members. Founded, designed, and owned by 12 of the

 nation’s leading credit unions, Student Choice aims to          By working in a collaborative networked environment,
 position credit unions as leaders in education finance in       credit unions can do what is right for their members, the
                                                                 future of their cooperative, and their country. All while
 the 21st century. Our networked model manages the key           offering a product that will truly enable members to make
 operational challenges and risks associated with private        better lives for themselves.

 student lending, allowing credit unions to recognize the full   •	   Grow and diversify your loan portfolio—Leverage
                                                                      your balance-sheet lending capability to offer fair
 economic return from these attractive lending relationships
                                                                      rates and terms that will benefit both members and
 without adding any additional staff or on-site expertise.            the credit union.

                                                                 •	   Build life-long relationships with Gen Y members—
                                                                      Deliver a superior loan product to young adults and
                                                                      recognize the full value stream that can only come
                                                                      from a long-term productive loan relationship.

                                                                 •	   Turn-key solution—Enter this market easily and
                                                                      efficiently with our networked structure. No additional
                                                                      staff is necessary as we handle the most difficult and
                                                                      time-consuming aspects of student lending.

                                                                 •	   Achieve optimum portfolio performance—
                                                                      Mitigate risk and enhance performance by utilizing
                                                                      prudent risk-based underwriting, school certification,
                                                                      and optional portfolio insurance to maximize revenue.

                                                                 •	   Your members need you—With the bulk of credit
                                                                      union members falling in the 45-54 age range, it’s
                                                                      imperative that credit unions meet not only their
                                                                      financial needs, but also those of their college-bound
                                                                      children. Help them achieve the dream of higher
                                                                      education, without the higher price tag commonly
                                                                      associated with private student loans.

A Market in Need
 In the $200 billion a year higher education market, private student loans have carved out a
 significant piece of the pie, becoming a critical educational funding component for millions of
 American students and families.

 These loans help fill the funding gap—the difference                                                                                9% and 11%. On top of that, most lenders charge an
 between the cost of attendance and the amount covered                                                                               origination fee ranging anywhere between 3% and 8%.
 by other lower-cost sources of financial aid, such as                                                                               As many publicly traded lenders struggle mightily with
 scholarships and Federal loans—faced by many of today's                                                                             ongoing economic challenges and increasing cost of funds,
 college students.                                                                                                                   consumers will be likely be faced with even higher rates
                                                                                                                                     and fees.
 Fueled by skyrocketing tuition costs, meager increases to                                                                           OPPORTUNiTy AMiDST CRiSiS
 federal student loan limits, and fluid access to secondary                                                                          Historically, the private student lending market was
 markets, private student loan volume grew more than                                                                                 dominated by national lenders and specialty finance
 350% between 2000 and 2007. With the total cost of                                                                                  companies. These lenders typically funded new loans by
 attendance at both public and private schools increasing                                                                            selling existing loans into the secondary market—nearly
 rapidly, and many parents struggling with declining home                                                                            70% of private student loans entered this market in
 values and a weakened economy, these loans will continue                                                                            2007. in early 2008, because of the mortgage meltdown
 to be an important source of educational funding for                                                                                and ensuing credit crunch, the market for securitized
 years to come. A                                                                                                                    loans completely evaporated as investors backed away
                                                                                                                                     from asset-backed securities. This dramatic crash forced
 QUESTiONABLE QUALiTy                                                                                                                hundreds of lenders to exit the market and severely
 Known for questionable marketing tactics, little                                                                                    restricted capacity for those who remain, leaving billions
 transparency, and delivering poor economic value to                                                                                 in private student loans up for grabs, and students and
 borrowers, private student loans have often times placed                                                                            families scrambling like never before.
 profit ahead of people. interest rates can vary greatly
 from one lender to another, but in today’s market the                                                                               “Partnering with CU Student Choice gave us the expertise
 “average” private student loan has a rate between
                                                                                                                                     immediately in a true turn-key solution. We were able to
                                                                                                                                     launch quickly and members have been amazed at the ease
                                                                                                                                     of the process.”
   ONE-yEAR COST FOR TUiTiON, FEES, ROOM AND BOARD                                                                                                                    Diane Richard, Vice President, Consumer Loans
                                                                                                                                                                                         Digital Federal Credit Union
     Private Four-year                 Public Four-year (in-State)                                   Public Four-year (Out-of-State)




























                                                                                                                                                                                             Source: The College Board,
                                                                                                                                                                                             Annual Survey of Colleges
A credit Union Solution
 In hopes of redefining the economic value found in private student lending, several of the
 nation’s leading credit unions and credit union service organizations (CUSOs) formed Credit
 Union Student Choice to help members lower their overall cost of higher education.

 The CUSO launched in May 2008 and offers a turn-key            PROVEN RESULTS
 private student lending solution that benefits members         Since launching in May 2008, credit unions partnered with
 through lower loan rates, zero origination fees, and           Student Choice have funded more than $170 million in
 more flexible repayment options. This revolutionary new        private student loans and helped nearly 14,000 students
 loan product fills the growing funding gaps that federal       attend college. Bringing the superior balance-sheet lending
 student can leave behind, without the higher price tag         ability of credit unions to private student loans, these
 commonly associated with “private loans”.                      credit unions are providing students with honest, cost-
                                                                effective solutions to their education finance needs from
 PRODUCT OWNERSHiP                                              a local institution that is prudently run, trustworthy, and
 Student Choice puts your credit union directly in the          working with their best interest in mind. The results clearly
 student lending business so that you can serve your            indicate that superior economic value is being delivered to
 members with products, services, and rates designed by         borrowers while returning good business to credit unions.
 you. With just a small capital investment, our network
 enables you to make certified private student loans and        “This program allows BECU to maintain ultimate control
 hold them on your own balance sheet, without adding
                                                                over pricing, underwriting, and marketing, while Student
 any additional staff. Under this scenario, you set the rates
                                                                Choice handles all of the complex operational details.
 and recognize the full value stream that can only come
 from a long-term productive loan relationship.This is not      The support and guidance we’ve received from Student
 a referral program—it is your loan with your Gen Y             Choice has been phenomenal.”
 member at the most critical stage of their young financial
 lives. This unique solution will give you the opportunity to           Tom Berquist, Senior Vice President, Member Strategies
 grow and diversify your loan portfolio while helping you
 solidify lifelong relationships with young adults who are
 the future of your credit union.                               B: STUDENT CHOiCE LENDiNG PROCESS

 By pooling our collective resources Student Choice has
 centralized the expertise necessary to stay on top of this
 rapidly changing market. Our network of best-of-breed
 partners handles the most difficult and time-consuming
 aspects of private student lending, such as:
    •	 regulatory compliance
    •	 risk management
    •	 loan processing and servicing
    •	 guarantor relationship
    •	 web services, including online application and
    •	 24x7 call center operations

 This collaborative structure allows you to do what you do
 best—use prudent underwriting to lend member deposits
 at appropriate terms, providing superior economic value
 to borrowers while bringing revenue growth and member
 relationships to the credit union. B
Make the Right choice
     DECiDiNG FACTORS                          THE STUDENT CHOiCE PROGRAM

 Member Experience                      We provide a content-rich co-branded website, online application, 24/7 call center, and experienced student
                                        loan servicing. With our training, marketing, and operational support, we help you take full ownership
                                        of the program, ensuring high-quality service to your members.

 Member Costs – Origination Fees        zero origination fees

 Member Costs – interest Rates          Extremely competitive as set by the credit union, helping you deliver value to borrowers AND the cooperative.

 Loan Type                              innovative line-of-credit structure equals member convenience, affordable repayment, and significantly
                                        reduced credit union origination expenses on subsequent draws.

 Member Payment Options                 Flexible repayment options, including full in-school deferment, allow borrower choice. This lessens the
                                        chance of in-school delinquency and potential loan cancellation. 20 or 25-year repayment periods (based on
                                        loan balance) allows lower monthly payments to reduce defaults.

 Opportunity for School Relationships   Program “ownership” gives the credit union an excellent opportunity to partner with leading colleges and
                                        universities in your local community. Financial aid administrators are actively searching for fair-value private
                                        student loans for their students and have been very receptive to credit unions in the Student Choice program.

 Credit Union Portfolio Economics       Positive impact on the bottom line as the credit union holds the entire loan balance.

 Credit Union Risk                      As with any loan, risk is present. Numerous risk-mitigation tactics are utilized to enhance performance:
                                              •	 Prudent risk-based underwriting, with credit tiers set by credit union
                                              •	 Co-Borrower highly recommended and necessary for vast majority of borrowers
                                              •	 All loans are school-certified (validate enrollment and loan amount)
                                              •	 Loans are non-dischargeable in bankruptcy
                                              •	 Variable interest rate that adjusts quarterly
                                              •	 Only lend to schools with a proven history of low student loan default rates
                                              •	 Optional portfolio insurance with 100% coverage

 Organizational Structure               Credit Union Service Organization (CUSO) – credit union owned and directed

 Program Sustainability                 Based on credit union owners, not stockholders


   collaborative spirit...
                                    in action                              FOUNDiNG ORGANizATiONS
                                                                           Affinity Plus FCU: Saint Paul, MN
                                                                           BECU: Tukwila, WA
                                                                           Digital FCU: Marlborough, MA
    Epitomizing the collaborative spirit of the credit
                                                                           Eli Lilly FCU: indianapolis, iN
    union movement, Credit Union Student Choice has
                                                                           MIT FCU: Cambridge, MA
    accomplished what no single credit union program
                                                                           NASA FCU: Upper Marlboro, MD
    could. With cooperation and a keen focus on
                                                                           NuUnion CU: Lansing, Mi
    the future, the CUSO developed a networked
                                                                           San Antonio FCU: San Antonio, Tx
    business model that gives credit unions, with just
                                                                           Star One CU: Sunnyvale, CA
    a small capital investment, the ability to offer
                                                                           Suncoast Schools FCU: Tampa, FL
    private student loans that deliver true member
                                                                           Workers CU: Fitchburg, MA
    value with minimal risk. The key to the CUSO
                                                                           Wright-Patt CU: Fairborn, OH
    is the unique business model that relied on the
                                                                           PSCU Financial Services: St. Petersburg, FL
    leadership of several of the nation’s leading credit
                                                                           Callahan & Associates: Washington, D.C.
    unions and CUSOs to help bring together partners
                                                                           CUFSLP (Callahan Credit Union Financial Services
    that provide expertise in all areas of student
                                                                             Limited Partnership)
    lending. These providers are much more than just
    contractors. They are investors in a new model
    that will help position credit unions as leaders in
    21st century education financing.
America’s largest private                                              Workers CU
                                                                       Mid-Atlantic FCU
                                                                                                             66 FCU
                                                                                                             AmeriChoice FCU

student lending network                                                NASA FCU
                                                                       Signal Financial FCU
                                                                                                             Corry FCU
                                                                                                             CTCE FCU
Credit Union Student Choice is now partnered with                      Harborlight CU                   MI   Discovery FCU                PA
nearly 120 credit unions across the country.                           NuUnion CU                       MI   Erie Community FCU           PA
                                                                       United FCU                       MI   Erie General Electric FCU    PA
Alabama CU                      AL   Maroon Financial CU          IL   Affinity Plus FCU                MN   Glatco CU                    PA
Arkansas FCU                    AR   Meadows CU                   IL   Novation CU                      MN   JSTC Employees CU            PA
Arizona State CU                AZ   Motorola Employees CU        IL   American Eagle CU                MO   Members 1st FCU              PA
Addison Avenue FCU              CA   Eli Lilly FCU                IN   Anheuser-Busch Emp CU            MO   Merck, Sharp and Dohme FCU   PA
Cal State L.A. FCU              CA   Evansville FCU               IN   Missoula FCU                     MT   NET FCU                      PA
Christian Community CU          CA   Interra CU                   IN   North Carolina Comm FCU          NC   New Cumberland FCU           PA
San Francisco Fire CU           CA   Three Rivers FCU             IN   Holy Rosary CU                   NH   Superior CU                  PA
South Western FCU               CA   University of Kentucky FCU   KY   Polish and Slavic FCU            NJ   Three Rivers FCU             PA
SRI FCU                         CA   Main Street Financial FCU    LA   ACMG FCU                         NY   Tobyhanna Army Depot FCU     PA
Star One CU                     CA   Boston Fire Fighters CU      MA   AmeriCU                          NY   Washington Community FCU     PA
USA FCU                         CA   Bridgewater CU               MA   Mid-Hudson Valley FCU            NY   West Branch Valley FCU       PA
Elevations CU                   CO   Digital FCU                  MA   Money FCU                        NY   Leaders CU                   TN
Public Service CU               CO   Energy CU                    MA   Quorum FCU                       NY   Amplify CU                   TX
Ledge Light FCU                 CT   Everett CU                   MA   Saratoga's Community FCU         NY   Irving City Employees FCU    TX
Bank-Fund Staff FCU             DC   Harvard Univ Employees CU    MA   Visions FCU                      NY   San Antonio CU               TX
Transit Employees FCU           DC   Hingham FCU                  MA   BMI FCU                          OH   ABNB FCU                     VA
Transportation FCU              DC   Liberty Bay CU               MA   Cinco Family Fin Center CU       OH   Apple FCU                    VA
Community First CU of Florida   FL   MAFCU FCU                    MA   Day Air CU                       OH   Chartway FCU                 VA
Grow Financial FCU              FL   MassMutual FCU               MA   Directions CU                    OH   DuPont Community CU          VA
Suncoast Schools FCU            FL   Millbury CU                  MA   Fremont FCU                      OH   Northwest FCU                VA
Emory Alliance CU               GA   MIT FCU                      MA   International Harvester Emp CU   OH   Univ of Virginia Comm CU     VA
Hawaii Community FCU            HI   NMTW CU                      MA   Kemba Financial CU               OH   NorthCountry FCU             VT
HawaiiUSA FCU                   HI   Seaport CU                   MA   MidState Educators CU            OH   BECU                         WA
Univ of Iowa Comm CU            IA   UMassFive College CU         MA   Midwest Community FCU            OH   Southern Lakes CU            WI
BCU                             IL   Worcester CU                 MA   Wright-Patt CU                   OH   UniWyo FCU                   WY

       “It was important for us to work with an organization that understood the credit union industry, was passionate
       about serving members, and was fully committed to helping credit unions enter this market. We found that partner
       in CU Student Choice, and are very pleased with the results thus far.”
                                                                                     Rick Thornburg, Senior Vice President, Lending
                                                                                                       Eli Lilly Federal Credit Union

 for more                                                              By credit unions,
        information                                                      for credit unions
 To learn more about the Student Choice program, including product specs and pricing, or to schedule a presentation,
 simply contact Jim Holt, Vice President of Sales Operations for Credit Union Student Choice.

           Jim Holt, VP Sales Operations

   Connect with young adults