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Today we have a sponsored post from Jason Bakker, the Director of Marketing at Campus Media Group, the exclusive sponsor of the Ypulse Campus Channel. This is the third in a monthly series of posts that’s part of Campus Media Group’s site sponsorship. If your company is interested in becoming a Ypulse sponsor, please contact Anne Weiskopf.

Student Lenders Are Missing an Opportunity

Choosing the right private student loan, federal student loan, government grant or other ways to pay for college is complex and befuddling. For many families and students that world can be a downright nightmare. It’s frustrating to digest it all and make sound decisions. Indeed, a recent Sallie Mae report found that many students were using credit cards to pay for tuition.

This trend doesn’t have to continue. Student lending is happening even in this economy, albeit on a smaller scale. There is a variety of new student lending models, such as GreenNote. Direct college lending options are taking root and gaining in popularity. And there are still plenty of student scholarships and grants. So why are students using credit cards to pay for college? I doubt it’s because these student are saving up rewards points for a new toaster oven. They are doing it for one simple reason: unlike the lending options provided by most banks and lending institutions, credit cards are convenient and easy to use.

Student lenders are missing a big opportunity to reach a new population of borrowers. Students are confused right now about the economy and credit. That confusion is exacerbated because too few financial institutions are stepping up and communicating. They’ve ceded the battle to the credit card brands, which have always understood the power of college student spending.

Banks, credit unions, student lending companies, and scholarship foundations should try to engage young customers immediately. This is a time when students need answers and are all-but asking to be educated and engaged by non-credit card players. They want solutions and will engage those financial institutions that help them in a genuine way.

So, what can a financial services or lending brand do right now? They should create new programs or re-launch existing ones that have been shelved over the past 18 months. They don’t need to focus on iPod give-aways or friending students on Facebook. Instead, they need a reliable brand image, competitive solutions, and messaging which both students and parents can understand.

These companies should be positioning themselves as brands that offer a financial lifeline and actually help students understand and prepare for their futures. They need to do it online, offline, on and off campus, and they need to do it consistently starting now and throughout the next school year.

For more campus coverage, visit the Ypulse Campus Channel.

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Categorized under: Collegians

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