New Virtual Financial Advisor Available to Schools, Students and Families Nationwide

NEW YORK, NY – July 8th, 2010 – Fynanz, Inc., the financial technology company that develops customized private student lending solutions and powers the cuStudentLoans.org private student loan marketplace, today launched a new website that includes an entire section devoted to helping students and their families research and obtain valuable insight into college financing options.

The new cuStudentLoans.org website features Ken’s Korner, hosted by a virtual financial aid advisor complete with an extensive educational blog, Twitter feed, Q&A section and links to helpful sites and articles with content updated multiple times each week.

Ken O’Connor has joined the Fynanz team as Director of Financial Literacy and heads up the educational program that is showcased in the “Ken’s Korner” section of the new website. In his new role, O’Connor acts as a student advocate to extend his financial aid expertise on a national level. Prior to joining Fynanz, O’Connor spent ten years as a financial aid officer at Fairleigh Dickinson University Metropolitan Campus in New Jersey where he helped over 30,000 students with their financial aid needs.

“With the new website and Ken’s Korner, we are now able to help students find solutions for many top concerns including how to find grant and scholarship funding, how to choose the college that is right for them and how to handle the financial aid process along with many other issues,” said Ken O’Connor.

“We’re pleased to be the first private student lending partner to offer a robust educational component to our website that provides valuable insight to both students and their parents. We envision this new content becoming a key component to many of our credit union client’s financial literacy programs,” said Vince Passione, CEO and Founder of Fynanz., “We are also very fortunate to have Ken O’Connor’s extensive experience and insight into the type of assistance students need to help them fund their future.”

Schools and credit unions nationwide can link to Ken’s Korner and utilize the educational content on their own websites.

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About Fynanz

Fynanz, Inc. is a leading technology provider of custom private student lending programs and turn-key solutions. Fynanz pioneered innovative technology that easily puts lenders into the private student lending business without the need to purchase or install any software. This end-to-end integrated solution includes complete origination, underwriting, servicing and marketing. Fynanz also powers cuStudentLoans.org, the leading private student lending marketplace, and currently serves more than 50 credit unions across the country. For more information, call (800) 881-8985, or visit www.fynanz.com.

Media Contact

Alexi Venneri, Fynanz, Inc.
alexi@fynanz.com
206-669-6989

Published June 18, 2010

The CUSO will manage the EdAccess private student loan product. The loan is designed for credit unions to pool funds and share the loan risk. There are currently 46 credit unions that offer the loan.

“The CUSO came together to best make sure the credit unions had full control over the pricing and structure of the loan. All the credit unions participating were interested in being representing by CEOs and credit union executives that have the background to make underwriting decisions,” said Jim Merrill, senior vice president of sales at Fynanz.

The EdAccess loan also has a new late rate of 2.75%, which is currently the lowest starting loan rate listed on StudentLendingAnalytics.com. Once the student enters repayment and pays back 10% of the principle balance, he or she also qualifies for a one percentage point rate reduction.

“We’re pleased that we are achieving our goal of setting the standard for private student loans nationwide by offering an extremely competitive loan rate to help credit unions of all sizes meet the growing educational financing needs of their student members,” said Thomas O’Shea, chairman of CU Student Lending, LLC and president/CEO of Aspire Federal Credit Union.

By Lindsey Siegriest

New Low Rate on EdAccess Loan from Credit Union Service Organization

NEW YORK, NY – June 17, 2010 – Fynanz, Inc., the financial technology company that develops customized private student lending solutions and powers the cuStudentLoans.org private student loan marketplace, announced that CU Student Lending, LLC, their affiliated credit union service organization (CUSO), has released one of the lowest rates available nationwide for a private student loan.

The new EdAccess loan, with an interest rate starting at 2.75%, is one of the lowest rate private student loans in the nation. The new loan offers a simplified origination fee of 2.50% across all pricing tiers, replacing a variable fee structure from last year.

The EdAccess loan was recently reviewed by Student Lending Analytics (SLA), an independent research and advisory firm, and it is listed as one of the lowest rates among all of the private student loans that were included in the review. Students can apply for the loan at www.cuStudentLoans.org and see how easy it is to become a credit union member.

The EdAccess loan can be used for all qualified education expenses and features an automatic 1% interest rate reduction once the borrower enters repayment and pays back 10% of the principal balance. The loan also includes no pre-payment penalty, no cosigner option, cosigner release option and a 30-day no-fee return policy. It is one of the first loan programs to introduce a $25 proactive monthly payment plan which requires the borrower to make payments while in school.  This proactive payment enables the borrower to develop their credit history while providing a monthly reminder of how much they owe.

“We’re pleased that we are achieving our goal of setting the standard for private student loans nationwide by offering an extremely competitive loan rate to help credit unions of all sizes meet the growing educational financing needs of their student members,” said Thomas O’Shea, Chairman of CU Student Lending, LLC and President/CEO of Aspire Federal Credit Union.

CU Student Lending, LLC is comprised of credit unions from across the country and was established to build a network of progressive lenders using a common platform to offer affordable student loans to cash-strapped students and their families nationwide.

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About Fynanz

Fynanz, Inc. is a leading technology provider of custom private student lending programs and turn-key solutions. Fynanz pioneered innovative technology that easily puts lenders into the private student lending business without the need to purchase or install any software. This end-to-end integrated solution includes complete origination, underwriting, servicing and marketing. Fynanz also powers cuStudentLoans.org, the leading private student lending marketplace, and currently serves more than 50 credit unions across the country. For more information, call (800) 881-8985, or visit www.fynanz.com.

Media Contact
Alexi Venneri, Fynanz, Inc.
alexi@fynanz.com
206-669-6989

NEW YORK, NY – June 9, 2010

Fynanz has more than doubled the number of credit union partners in just 90 days. This continued national expansion momentum further supports the many benefits the private student loan program provides to both credit unions and borrowers.

“Dort Federal Credit Union is excited about our relationship with Fynanz and we are looking forward to bringing a private student loan product to our market,” said Jeremy Zager, Chief Financial officer of Dort, “Both the loan portfolio diversification and the growth potential associated with offering private student loans are in alignment with our strategic vision and credit union mission.”

Dort Federal Credit Union is based in Flint, Michigan and serves the residents and workforce of Genesee, Lapeer, Shiawassee, and northern Livingston Counties through their network of seven offices. Princeton Federal Credit Union, originally chartered in 1972 by the faculty and staff of Princeton University, today serves members throughout New Jersey and also members from 60 employer groups nationwide.

“We’re extremely pleased to have credit unions of all sizes recognize the unique value our program offers and this expansion will allow us to meet the education financing needs of even more students nationwide,” said Vince Passione, CEO and Founder of Fynanz.

Fynanz was recently named the exclusive private student loan provider by CUNA Strategic Services, the association that works with credit unions nationwide, and secured extensive credit union league support from individual associations representing 28 states and the District of Columbia.

About Fynanz

Fynanz, Inc. is a leading technology provider of custom private student lending programs and turn-key solutions. Fynanz pioneered innovative technology that easily puts lenders into the private student lending business without the need to purchase or install any software. This end-to-end integrated solution includes complete origination, underwriting, servicing and marketing. Fynanz also powers cuStudentLoans.org, the leading private student lending marketplace, and currently serves 50 credit unions across the country. For more information, call 1-800-881-8985, or visit www.fynanz.com.

Media Contact

Alexi Venneri, Fynanz, Inc.

alexi@fynanz.com

206-669-6989

NEW YORK, NY – May 25, 2010 – Fynanz, Inc., the financial technology company that develops customized private student lending solutions and powers the cuStudentLoans.org private student loan marketplace today announced that Jim Merrill has joined its executive team as Senior Vice President of Sales, bringing more than 20 years of financial services experience to the Fynanz team including direct credit union management. In his new role at Fynanz, Merrill will manage the sales and client implementation teams that work with the company’s credit union and school partners.  He will also provide strategic input on the development of private student loan programs and work with credit unions and leagues at both the state and national level.

Merrill has extensive experience in both lending and operations, having held positions from Loan Officer to Chief Executive Officer in the credit union space.  Most recently, Merrill was the Senior Vice President of the New Jersey Credit Union League, where he built and grew the products and service division of the league by more than 30% in just four years. Merrill holds a Bachelor of Science Degree in Business Management from York College of Pennsylvania.

“In my prior role, we were the first of the growing list of more than 25 credit union leagues that formally announced their support of Fynanz and cuStudentLoans.org. I am extremely pleased that I was part of the first league that partnered with Fynanz and I continue to be impressed by the positive impact the program has on our credit unions, schools and students.  I look forward to being part of the team as Fynanz continues to set the standard for private student loans nationwide,” said Merrill.

“With his vast expertise in the credit union industry, the addition of Jim Merrill to our executive team further enhances our credit union expertise and shows our commitment to develop and manage private student loan programs that meet the needs of credit unions, their members and students nationwide,” said Vince Passione, Fynanz CEO and Founder.

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About Fynanz
Fynanz, Inc. is a leading technology provider of custom private student lending programs and turn-key solutions. Fynanz pioneered innovative technology that easily puts lenders into the private student lending business without the need to purchase or install any software. This end-to-end integrated solution includes complete origination, underwriting, servicing and marketing. Fynanz also powers cuStudentLoans.org, the leading private student lending marketplace, and currently serves more than 45 credit unions across the country. For more information, call (800) 881-8985, or visit www.fynanz.com.

Media Contact:
Alexi Venneri, Fynanz, Inc.
alexi@fynanz.com
206-669-6989

Fynanz was chosen by CUNA as the exclusive provider for private student loans in February.

“The broad support from the state leagues validates our selection of Fynanz as the sole provider of private student loans through CUNA Strategic Services. This additional collaboration at the state level will reinforce our message to credit unions nationwide that private student loans can attract new Gen Y members, and that the Fynanz program offers unique benefits to meet the needs of this important market segment,” said Wes Millar, senior vice president with CUNA Strategic Services.
The state leagues announcing support for the program include: Arizona; Arkansas; California/Nevada; Idaho; Indiana; Kentucky; Louisiana; Massachusetts/New Hampshire/Rhode Island; Maryland (and D.C.); Maine; Minnesota; Mississippi; Montana; New Mexico; North Dakota/South Dakota; New Jersey; Oregon; South Carolina; Tennessee; Texas; Vermont; Washington; Wisconsin; and West Virginia.

By Lindsey Siegriest

NEW YORK, NY – May 10, 2010

The state credit union leagues announcing their support serve the following states: Arizona; Arkansas; California/Nevada; Idaho; Indiana; Kentucky; Louisiana; Massachusetts/New Hampshire/Rhode Island; Maryland (and D.C.); Maine; Minnesota; Mississippi; Montana; New Mexico; North Dakota/South Dakota; New Jersey; Oregon; South Carolina; Tennessee; Texas; Vermont; Washington; Wisconsin; and West Virginia.  The marketing efforts of the participating state credit union leagues will complement the activities CUNA Strategic Services implements at the national level.  More state leagues are expected to voice their support of Fynanz in the coming months.

Fynanz was chosen by CUNA, the national credit union association, as their exclusive provider for private student loans this past February. The tremendous show of support by state credit union leagues is further recognition of the many benefits of the program, including the ability to attract younger members and help borrowers improve their financial literacy.

“The broad support from the state leagues validates our selection of Fynanz as the sole provider of private student loans through CUNA Strategic Services. This additional collaboration at the state level will reinforce our message to credit unions nationwide that private student loans can attract new Gen Y members, and that the Fynanz program offers unique benefits to meet the needs of this important market segment,” said Wes Millar, SVP with CUNA Strategic Services.

“The financial education component of the Fynanz program will appeal to many credit unions. The in-school servicing model will also help each participating student as they develop good payment behavior and build a positive payment history,” said Sylvia Fath, SVP Business Services, California League Services Corporation.

Also commenting on their support, Paul Rosenberger, Chief Services Officer, Maryland & DC Credit Union Association, said that “the Fynanz private student loan program provides a great channel to attract the younger members that every credit union needs, and the cuStudentLoans.org website helps draw them in.”

“It is noteworthy that so many state leagues have joined CUNA Strategic Services in support of not just Fynanz, but the creation of a private student loan program that includes a unique financial literacy component, which can enhance a credit union’s loan offering to its members,” said Vince Passione, CEO and Founder of Fynanz.

Fynanz offers both custom private student loan programs and end-to-end solutions. All programs come with marketing through cuStudentLoans.org, the leading private student lending marketplace that is powered by Fynanz. The programs also include:

• Proprietary Fynanz Academic Credit Score (FACS) to help mitigate risk
• Students apply for a new loan each year, giving students the chance to obtain a lower rate if their FACS improves
• In-school servicing with a monthly payment made while students are still in school, helping students increase financial literacy and build their credit
• Monthly email billing and notifications to both borrower and co-signer to help reduce default rates and increase awareness of financial obligation
• Electronic loan certification and funds disbursement

Private student loans are used to fill the funding gap that remains for many students after exhausting all other forms of financial aid such as grants, scholarships and federal student loans.

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About Fynanz, Inc.

Fynanz Inc. is a leading technology provider of custom private student lending programs and turn-key solutions. Fynanz pioneered innovative technology that easily puts lenders into the private student lending business without the need to purchase or install any software. This end-to-end integrated solution includes complete origination, underwriting, servicing and marketing. Fynanz also powers cuStudentLoans.org, a private lending marketplace, and currently serves more than 40 credit unions across the country. For more information, call (800) 881-8985, or visit www.fynanz.com.

About CUNA Strategic Services

CUNA Strategic Services Inc., owned jointly by Credit Union National Association (CUNA) and the state leagues, saved credit unions $40 million in 2009 through its national pricing programs. It provides credit unions with access to high quality products, services, and technologies delivered with a competitive advantage made possible through volume pricing and strategic program development. For more information, call (800) 356-8010, and press 3, or visit cunastrategicservices.com.

Media Contact:

Alexi Venneri

Fynanz, Inc.

alexi@fynanz.com

206.669.6989

Published April 28, 2010

While this legislation does eliminate private lenders from participation in federally guaranteed loan programs, it does not impact the private student lending programs that many banks, and most recently credit unions, provide in an effort to bridge the funding gap that many families face once all of their federal aid and grants are exhausted.

For many credit unions that have not offered a private student loan program, this new legislation could be very positive news. The majority of private student loans have been underwritten by large banks and Sallie Mae. Since many of these institutions were also FFELP lenders, they enjoyed a government subsidy since they used some of the same sales, service and technology infrastructure to support both their federal and private student lending programs. The elimination of FFELP evens the playing field for credit unions that are interested in entering the private student lending market.

In addition to the elimination of the FFELP and the Pell Grant funding increases, the recent legislation also includes the following government funding increases to improve college affordability.

$750 million to bolster college access and completion support for students. It will increase funding for the College Access Challenge Grant program, and it will also fund programs at states and institutions that focus on increasing financial literacy.

$1.5 billion to strengthen an Income-Based Repayment program that currently allows borrowers to cap their monthly federal student loan payments at 15% of their discretionary income.

$2.55 billion in historically African-American colleges and universities and minority-serving institutions to provide students with the support they need to stay in school and graduate.

$2 billion in a competitive grant program for community colleges to develop and improve educational or career training programs.

The recent increases in government funding are a positive for the more than 16 million students that are expected to enroll in colleges across this nation this coming fall. However, many industry watchers have noted that with record-breaking enrollment statistics paired with increased college tuition costs, the need for U.S. families to seek alternative sources of funding will continue to grow. Historically, students and their families could tap into home equity, family savings or perhaps a college savings plan. However, depressed real estate prices and record unemployment have severely impacted these options for the foreseeable future placing continued demand for economical private student loans.

Credit unions are fairly recent entrants into the private student loan business. It is estimated that approximately $150 million of private student loans were originated by credit unions for their members in the 2008-2009 academic year. While this is a small fraction of what is estimated at $12 billion of origination volume in that same period, it is a great development for students.

Credit unions continue to offer a better alternative for students and their families seeking affordable private student loans.

A private student loan program provides credit unions with the opportunity to service their existing members in need of college education financing while providing a channel to develop new Gen Y members. Given the complexities of college education financing, private student loan programs should be combined with a comprehensive financial literacy program. Credit unions have the opportunity to reach out to their members who have children in high school and begin the process of educating them on college education costs, the financial aid process, filling out the FAFSA forms and providing information on college education funding options.

This program need not stop after college enrollment. Once a student obtains a loan it is important to keep them informed of how much money they owe and what their private student loan payments will cost them once they go into repayment.

As student enrollments increase and their need for higher education funding continues, credit unions can mirror and expand the benefits of the new legislation. By offering private student loans, especially programs that include a financial literacy component and rate reductions for excellent academic achievement, credit unions can provide even more benefits and a highly beneficial new program, which will not only benefit current members, but help them attract new, younger members for life.

Vince Passione is CEO and founder of Fynanz. He can be reached at 800-881-8985 or vince.passione@fynanz.com

NEW YORK, NY – March 23, 2010

“The bill overall doesn’t affect private student lending, and even if it does, it helps the borrower,so it is a positive for the industry,” said Chirag Chaman, chief operating officer of Fynanz, a New York, N.Y.-based provider of custom private student loans. Fynanz has a new alliance with CUNA Strategic Services to help credit unions in the private student loan market. It has 23 credit unions on board and 16 to be implemented in the next nine months, he said.

“If [the bill] helps the students, it helps the customers of the credit union, and by helping them, it helps the credit union” meet members’ needs, he told News Now.

The bill revamps the federal student loan programs and eliminates fees paid to private banks to act as intermediaries in student lending. Instead, the government will expand a direct lending program and use the $61 billion that taxpayers would save over 10 years to increase Pell grants for students (The New York Times March 21).

The bill sets automatic annual increases in the maximum Pell grant, scheduled to increase to$5,975 by 2017 from $5,350 this year. It also includes $13.5 billion to cover a shortfall caused by a steep increase in the numbers of students enrolling in college and seeking financial aid during the recession, said the Times.

Chaman noted there are few changes from earlier versions of the bill. “There’s nothing thrown in that’s new,” he told News Now. The Pell changes will provide aid, and “Need-based aid for students is important. The funds hadn’t been growing the past few years and [the increases] were needed,” said Chaman.

He noted that the average student takes out a private student loan as a last resort. “They will take the federal loan aid, state grants, scholarships first. A private student loan is the last thing they should look at,” he added.

Private lending can still be among the options schools can present to students with their information, although schools cannot recommend one over the other. “And the bill has no extra regulatory burden other than what’s already come down the pike” when Congress introduced Title X changes in loan forms, he said.

The Credit Union National Association (CUNA) closely monitors student financial aid and loan consolidation matters. Many credit unions, particularly campus credit unions, are heavily dependent on federal subsidies so that they can offer student loans at reasonable rates. This issue has taken on added importance as the national credit crunch has dried up many lending pools for college students. In addition recent federal legislation has decreased federal student lending subsidies to financial institutions in favor of direct government to student loans, said CUNA.

Student lending helps credit unions build their current and long-term lending base by reaching out to the college-student market, which is expected to reach record levels in coming academic years. Student lending helps credit unions attract members age 18-24 where credit union membership is weakest.

Copyright © 2010 – Credit Union National Association, Inc.

As of press time, no official deal had been signed, but CUNA said it was close to completing due diligence for Fynanz to become a CUNA Strategic Services partner.

“We’re continuing to make positive progress with our due diligence and are moving along the timeline. The partnership is not completed yet, but at this point in the process, we have not discovered any issues that would keep us from moving forward,” said Wes Millar, vice president of CUNA strategic alliances.

Fynanz and CUNA are scheduled to jointly host a reception at CUNA’s Governmental Affairs Conference on Feb. 22 to formally announce the partnership.

Millar said CUNA had been looking for a student lending solution to partner with for the past few years.

“There’s a huge need in the market place for a product like this. We wanted to fill in the gap in the process for members with a college-age child, and it brings in members at a younger age,” he added.

As part of the partnership, CUNA will provide Fynanz with feedback from credit unions on the loan product. Since student lending is a new area for credit unions, the two will also work together on training and education, white papers, seminars and panels on how to market private student loans.

Last May, Fynanz started a cooperative loan program with 12 New Jersey credit unions to pool funds and spread risk. Each credit union owns 10% of the loan and is responsible for completing a part of the due diligence. The program, which offers the Fynanz EdAccess Loan, now has 30 credit unions participating in New Jersey, Pennsylvania, New York and Minnesota. In addition to the EdAccess program, Fynanz also has four credit union clients that have developed their own custom loan programs.

Fynanz created the custudentloans.org portal for its EdAccess and custom loan program clients. The portal connects students looking for financing options with credit unions. The underwriting on the loan is rewritten annually. Fynanz determines the interest rate and creditworthiness of the loan by using what CEO Vince Passione calls the “academic credit score.” Fynanz looks at the FICO score of the both the signer and co-signer, the students probability of graduation, years of study and grade-point average. Because the loan is written each year, the student has the chance of a lower rate if the academic credit score improves.

Recently, Fynanz was able to close $6.5 million in series A funding from a group of investors. Passione said that the financing will be used to build future products, implement a new call center and hire additional staff. One of those future products is a consolidation loan similar to the EdAccess loan.

Passione said a group of credit unions came together with an interest in building a loan for students who graduate and need to consolidate their debts. The fixed-rate consolidation loan, called EdSucceed, already has credit unions across the tri-state area and Minnesota interested in participating. The 15-20 year closed end loan offers a two year interest-only option and one tier pricing at 7.4-8.4%. Like the EdAccess loan, the credit unions will pool funds and spread out the risk.

“It’s a good product for credit unions struggling to make multiple loans. For students, there are better products available now. It gives them the option to consolidate for more favorable terms,” said Paul Gentile, president/CEO of the New Jersey Credit Union League. Gentile helped New Jersey credit unions come together to start the EdAccess loan program.

Down the road, as part of the CUNA partnership, Passione said he is working to develop a financial literacy program to accompany the student loan products. The program would be three-pronged to offer education before the student obtains a loan, while the student is in school and when he or she graduates. CUNA will provide collateral educational materials that will be incorporated into the Fynanz platform.

“There is a lot of misinformation when it comes to student lending, and Fynanz is set up to provide communication and follow up with a solid loan product,” Millar said.

Looking at this peak lending season, Passione said that when it comes to student lending there is a lack of capacity but not demand. Tuition continues to increase, statewide funding is decreasing and unemployment is continuing to drive people back to school.

By Lindsey Siegriest