The NAFCU Journal January-February 2020 - 16

impact on the economy beginning as
soon as six months into the presidential term. This will have an impact
on the economy, potentially in the
election year and for at least two years
to follow."

Student Loan Debt's
Economic Impact

As of Sept. 30, 2019, 44 million student
loan borrowers owed a total of $1.46
trillion, with the average loan being
$28,650 and 11 percent of them delinquent, according to the Federal Reserve
and the Institute for College Access
and Success.
"I don't think there is any question
that the student debt overhang is
crowding out other types of credit,
particularly housing," Long says. "It
remains a big reason why young borrowers are not even bothering to apply
for mortgage loans."
"This is one of my concerns for the
future," Inman admits. In addition
to being unable to afford to purchase
a home, he says, these borrowers -
including a significant number who
borrowed for college and then failed
to earn a degree - also delay auto
purchases, having a family or saving
enough for retirement.
Student loan debt will be a challenge
for the foreseeable future. "High
student loan debt levels will continue
to restrain spending for the younger
generation and even impact saving and
retirement for the older generation,
who continue to have this debt as well,"
Eisel predicts.

Advice for Tumultuous
Times Ahead

In the coming year, it's important
for credit union CEOs to continue
to focus on the growth of their
overall loan portfolios. "But how
do you position that if you're not in
an area with fertile growth, as we
here in northeastern Florida have?
With good, quality underwriting, as
well as managing the business in a
way that you can manage that interest
margin," Inman advises.
He also recommends paying close
attention to the credit union's overall
branding as a trusted financial resource
with expanded member options, such
as mobile banking apps and virtual
payment options.

Parrish believes most credit unions appear
to have built up capital since the Great
Recession, leaving them in better shape
from both capital and liquidity standpoints.
That kind of extended success, though, can
lead to becoming a bit lazy when it comes
to expense control, he warns.
"If you can quickly reduce expenses and
combine that ability with the solid cushion of capital and liquidity, you'll have a
pretty good defense set up for the next
downturn," Parrish says. "Also, remind
members that you managed to survive
the last extreme downturn - and then
show them that you're in much better
shape now to take on the next one."
Anne Saita is a business and technology
freelance writer and past contributor to
The NAFCU Journal.

''

The consumer is still the main reason the economy is
hanging in there despite uncertainty surrounding trade. It
seems consumer sentiment remains positive, given the
positive data in retail sales and still-robust housing.
- FRED EISEL, CHIEF INVESTMENT OFFICER, VIZO FINANCIAL CORPORATE CREDIT UNION

16

''

THE NAFCU JOURNAL  JANUARY-FEBRUARY 2020



The NAFCU Journal January-February 2020

Table of Contents for the Digital Edition of The NAFCU Journal January-February 2020

The NAFCU Journal January-February 2020
Contents
Conferences
From the Chair
2020 Advocacy Priorities
The Bottom Line
Leadership Download
Warning: Speed Bumps Ahead
Stepping Into 2020
2020 Vendor Directory
Executive Spotlight
Management Insight
Compliance Central
Inside NAFCU Services
From the President’s Desk
The NAFCU Journal January-February 2020 - The NAFCU Journal January-February 2020
The NAFCU Journal January-February 2020 - Cover2
The NAFCU Journal January-February 2020 - Contents
The NAFCU Journal January-February 2020 - 2
The NAFCU Journal January-February 2020 - Conferences
The NAFCU Journal January-February 2020 - From the Chair
The NAFCU Journal January-February 2020 - 5
The NAFCU Journal January-February 2020 - 2020 Advocacy Priorities
The NAFCU Journal January-February 2020 - 7
The NAFCU Journal January-February 2020 - The Bottom Line
The NAFCU Journal January-February 2020 - 9
The NAFCU Journal January-February 2020 - Leadership Download
The NAFCU Journal January-February 2020 - 11
The NAFCU Journal January-February 2020 - Warning: Speed Bumps Ahead
The NAFCU Journal January-February 2020 - 13
The NAFCU Journal January-February 2020 - 14
The NAFCU Journal January-February 2020 - 15
The NAFCU Journal January-February 2020 - 16
The NAFCU Journal January-February 2020 - 17
The NAFCU Journal January-February 2020 - Stepping Into 2020
The NAFCU Journal January-February 2020 - 19
The NAFCU Journal January-February 2020 - 20
The NAFCU Journal January-February 2020 - 21
The NAFCU Journal January-February 2020 - 22
The NAFCU Journal January-February 2020 - 2020 Vendor Directory
The NAFCU Journal January-February 2020 - 24
The NAFCU Journal January-February 2020 - 25
The NAFCU Journal January-February 2020 - 26
The NAFCU Journal January-February 2020 - 27
The NAFCU Journal January-February 2020 - 28
The NAFCU Journal January-February 2020 - 29
The NAFCU Journal January-February 2020 - 30
The NAFCU Journal January-February 2020 - 31
The NAFCU Journal January-February 2020 - 32
The NAFCU Journal January-February 2020 - 33
The NAFCU Journal January-February 2020 - Executive Spotlight
The NAFCU Journal January-February 2020 - Management Insight
The NAFCU Journal January-February 2020 - Compliance Central
The NAFCU Journal January-February 2020 - 37
The NAFCU Journal January-February 2020 - Inside NAFCU Services
The NAFCU Journal January-February 2020 - 39
The NAFCU Journal January-February 2020 - From the President’s Desk
The NAFCU Journal January-February 2020 - Cover3
The NAFCU Journal January-February 2020 - Cover4
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