Student loan debt has surpassed credit card debt and is predicted to cross $1 trillion this year
According to Emily Barker at Co-operative News, students may find a “saving grace” in credit unions.
While many banks have began to shy away from the student loan market, credit unions are still committed to providing fixed rate loans for students struggling with debt.
More than 130 credit unions nationwide have joined together to launch cuStudentLoans to connect students with not-for-profit lenders. cuStudentLoans now serves 2.1 million credit union members and has US$18 billion in combined total assets. Credit unions not only decrease the interest on student loans, but they actively encourage better debt management.
To read more of this article at Co-operative News, click here.
The Christian Science Monitor has a nice article highlighting the cooperative business model.
Two important points are made in the piece:
Co-ops worldwide represent much more than hippie grocery stores: They’re a fast-growing way to do business better in fields from finance to agriculture to industry…
…Cooperatives are more widespread than you might think. From banks and credit unions to apartment buildings to worker-owned businesses, co-ops appear in every facet of today’s economy. In most cases, they formed in response to economic crises like the Great Depression, or to let small groups compete in monopolized markets. In 2012, both of those conditions exist – and unsurprisingly, so do cooperatives.
All too often when talking to the general public about cooperatives, misconceptions and misunderstandings occur about the nature and scope of cooperative enterprises. The truth is, there is enough flexibility in the cooperative model to handle any type of business endeavour.