CHAPEL HILL, N.C. — A student-led effort to establish a credit union at the University of North Carolina at Chapel Hillcould produce the state’s first newly chartered credit union in more than 20 years and what organizers say would be the nation’s only student-run credit union at a public university.
According to reporting by The Assembly. Carolina Students’ Credit Union has applied for a state charter and is awaiting regulatory approval. Its organizers hope to open in time for the spring semester, although the North Carolina Credit Union Division told The Assembly it has no estimated decision date and is working with organizers and the National Credit Union Administration on a final determination.
The effort was launched by Shiva Rajbhandari, a UNC student who struggled to find a suitable banking option after arriving on campus with scholarship funds. Rajbhandari, who had pledged to avoid banks financing fossil fuels, recruited other students to develop a financial institution designed around their peers’ needs.
The group has raised $400,000 in donated startup capital and secured commitments for another $1.6 million in deposits from credit unions around the country, The Assembly reported. It surveyed hundreds of students and submitted its business plan and charter application in June.
Services Designed for Students
If approved, the credit union would serve UNC students and their families, with graduates permitted to retain their accounts. Planned offerings include credit-builder loans for members with limited credit histories and low-interest, short-term internship loans to help students pay summer housing deposits. Organizers also envision financial education workshops and individual coaching, according to the Assembly.
Calie Justus, a junior serving as chief financial officer, told The Assembly that students need more options and guidance navigating financial decisions. International students could also benefit from peer assistance opening accounts and understanding U.S. banking practices, organizers said.
Student-Run Operations
About 45 students are working on the project. Once operational, participants expect to volunteer approximately 10 hours a week handling teller duties and functions including technology, human resources and marketing. They are practicing procedures for everything from customer interactions to electronic transfers, according to The Assembly.
The model has precedents at Georgetown University and the University of Pennsylvania, where student-run credit unions have operated for decades. Leaders from both institutions advise the UNC organizers, who are also preparing a guide to help students at other universities establish similar institutions.
A Key Challenge
A key challenge will be maintaining continuity as students graduate. Rajbhandari said recruitment interest has been strong, with applications exceeding available positions by more than eight to one.
UNC told The Assembly it values student entrepreneurship and recognizes that students have varied financial needs. The university said it already provides financial literacy resources through its Carolina Financial Well-Being Center and does not have an official banking partner.
Rajbhandari said the proposed institution is intended to give students a direct role in decisions about their money while providing practical experience in operating a regulated financial institution.
