Credit Union begins student loan service
The Georgetown University Alumni and Student Federal Credit Union announced Monday that it would start providing Georgetown students with affordable student loans. The Credit Union leadership hope that the student loan portfolio will someday endow a fund to the University, helping to make Georgetown a more affordable place for its students.
According to GUASFCU CEO Laura Krivacek (COL ’15) and Chief Lending Officer Peter LiVolsi (COL ’15), the use of deposits to fund student loans was something George Houston, whose $100,000 deposit helped found the Credit Union, intended from the Credit Union’s inception in 1983.
“With George Houston’s generous spirit in mind, we will be donating 5% of all our student loan interest revenue to a fund at the university,” Krivacek and LiVolsi wrote in an email to Vox. “The goal of our donation to the university is to help make Georgetown more affordable for future generations of Hoyas.”
The most attractive part of the loan program is its competitive rates. According to Krivacek and LiVolsi, a student loan from GUASFCU has a variable rate starting at 3.23 percent for both graduate and undergraduate students and has no origination fee. A Direct Unsubsidized Loan from the government for an undergraduate student has a fixed rate of 3.86 percent but charges an additional 1.072 percent origination fee on all loans. And a government loan for a graduate student starts at 5.41 percent, plus the fee.
Krivacek and LiVolsi gave the rates for PNC and Discover, 3.46 percent and 3.25 percent, respectively, as examples of rates from other private lenders.
Krivacek and LiVolsi anticipate rapid growth for the Credit Union upon this announcement and wrote that their greatest challenge will be reaching out and advertising to the incoming class of students. GUASFCU will reach out to new students through the New Student Orientation email.
“Our goal is to become the primary private student loan financier of Georgetown undergraduates and graduates,” Krivacek and LiVolsi wrote. “Whether our members need to finance their first year on the Hilltop or their professional studies at another institution, we want to provide them with the necessary funding to accomplish their goals.”
They went on to explain that GUASFCU will be able to meet the high demand because the Credit Union’s credit union service organizer, which services its loans, gives the Credit Union enough flexibility in its total loan holdings.
Photo: Ryan Greene/Vox Populi