Student Loan Processing Software
The long-term effects of student loan debts on American citizens have been mentioned many times by politicians in recent years, particularly President Obama, and it continues to be an important issue for lenders.
According to a recent report published in USA Today, millions of Americans owe more than $1 trillion in total debts solely for education. Because of the sheer amount of loans being taken out, companies need to be selective and use credit application processing tools to vet specific cases.
A piece in the Boston Globe recently highlighted another factor in this whole situation, which is that credit unions are becoming more active in encouraging students to take out loans. Throughout the country, the amount of credit unions that issue student loan has grown by a quarter over the past two years, the source asserts.
Globe contributor Deirdre Fernandes specifically notes that many credit unions may not be prepared to handle the amount of work they need to do by themselves.
“Many credit unions have entered the private student loan industry by contracting with third parties, called credit union servicing organizations,” she writes. “These for-profit businesses provide credit screening and collection services for credit unions that don’t have the money and staff to do it themselves.”
Rather than outsourcing the entire operation, lenders can use application processing software to streamline your workflow. The advantages of having automated decisioning on your company’s side are obvious: you have the tools to make your job efficient, provide better service to customers and protect your organization’s bottom line.