Katie BaileyEvery credit union wants to attract more members, especially younger ones. Few products offer a better opportunity to begin those relationships than education loans.
SoFi, a digital financial services company that began in student lending, recognized this opportunity in 2011. A group of Stanford graduates pooled $2 million to fund loans for fellow alumni. Fifteen years later, SoFi has grown into a $38 billion deposit powerhouse serving 13.6 million members.
Student lending was not simply another product. It became the gateway to additional accounts, future loans and long-term financial relationships.
According to new research from LendKey, 85% of SoFi members who began with a student loan or student loan refinance later opened additional products. Even more concerning for credit unions, nearly 25% of the deposits SoFi has drawn from other financial institutions reportedly came directly from credit unions.
The timing could not be more critical. Beginning in July 2026, new federal student borrowing limits and the elimination of the Grad PLUS program will create significant funding gaps. Many graduate and professional students—as well as families that previously relied on federal borrowing—will need to explore private education loans.
Credit unions are well positioned to meet this need. They already possess something fintech lenders have spent years and millions of dollars trying to build: trust. What many lack is the technology and infrastructure required to deliver the seamless digital lending experience today’s borrowers expect.
That is where LendKey can help.
Through its partnership with LEVERAGE, LendKey offers turnkey private student loan and student loan refinancing solutions that help credit unions reach new borrowers, deploy capital, and build relationships with younger members. Private student loans can place a credit union at the beginning of a member’s financial journey, while refinancing and consolidation can create connections with graduates and professionals entering their prime borrowing years.
An education loan should not be viewed as a single transaction. It can be the first step in a relationship that eventually includes checking and savings accounts, credit cards, auto financing, a first mortgage and decades of future financial milestones.
The next generation of members is preparing to search for new education financing options. With LendKey, credit unions can be ready to meet them at that critical first borrowing decision and potentially earn their loyalty for years to come.
