One of the toughest parts of borrowing money for education ispaying off the loans, especially if high interest rates are in thepicture. That's where credit unions can come in and offer reliefwith student loan refinance programs, several expertssay. 

The National Institutes of Health Federal Credit Union justlaunched a refinancing program geared toward health careprofessionals, a demographic that tends to be highly burdened withstudent debt, the credit union said. The $562 million, Washington,D.C.-based credit union, which serves the health care andbiomedical industries, built the “CareerBuilderEducation Refinancing Program” in response to requests from itsmembers who are especially strapped due to high costs of living inthe Mid-Atlantic region, explained Juli Anne Callis, president/CEOfor NIHFCU. 

“It's a solution we developed to meet the needs of ourconstituency,” Callis said. “We kept hearing about this heavyindebtedness among health care professionals, such as nurses. Thatmiddle tier is facing an ongoing challenge.”

NIHFCU's student loan refinance product features low fixed andvariable rates, as well as the option to extend loan terms to 15 or20 years to reduce monthly payments, the credit union said. 

Callis said the credit union plans to promote the loans, whichshe anticipates to average $20,000 each, during on-site visits tolocal health care associations and employers.  

The new program is also a win for the credit union from abusiness perspective. It's an opportunity for NIHFCU to see returnsfrom a niche, unsecured loan product, Callis explained. NIHFCU doesnot offer its own private student loan program, but it doesparticipate in Sallie Mae's Smart Option Student Loan referral program.

For any credit union, providing a student loan consolidationprogram is a great way to assist borrowers who face high interestrates from existing private student loans as well as continue thecredit union tradition of offering support in any way they can,said Jim Holt, vice president of sales operations for studentlending CUSO Credit Union Student Choice. 

“Relief for the cost of education can come in several forms,”Holt said. “First, students need to understand how to afford schooland know that government programs should be exhausted first.Second, if students need additional help, they should look to theirlocal credit union for a private student loan. And third, creditunions can help those unfortunate students who have been saddledwith high interest rates through consolidation programs.”