Starting July 1, the federal government will be handling its own student loan programs, removing financial institutions as the middleman.

So UW Credit Union is trying to tap into the market for college loans provided by the private sector.

For 40 years, Madison-based UW Credit Union has issued loans to students through federally guaranteed student loan programs; four years ago, it began offering its own brand of college loans, too.

Now, UW credit union has formed a subsidiary company, CU Campus Resources, to sell use of its student loan technology — developed by Cology, a Scottsdale, Ariz., company — and tips to other credit unions across the country. The package includes access to its system, as well as forms and marketing materials.

“We were one of the first in the nation to do private student loans,” said Mike Long, executive vice president of UW Credit Union and chief operations officer of CU Campus Resources.

“We have over $430 million of student loans on our books right now ... including about $37 million in private student loans,” said Long.

He said the average private college loan issued by UW Credit Union is $7,000.

UW Credit Union student loans are meant to supplement the federal programs, not replace them, he said.

“The cost of tuition and living expenses is much greater than what you can qualify for through federal loan programs,” Long said.

He said he thinks there will be a significant amount of interest from other credit unions in the idea of offering private student loans. “It’s one of the bigger growth areas for consumer types of loans. Private student lending continues to grow at a rapid pace,” Long said.

Individual credit unions that buy into UW Credit Union’s package would make their own decisions on who should receive the loans. They would also set their own rates and process and own the loans. “We’re just helping them put all the pieces together so they don’t have to do it themselves,” Long said.

UW Credit Union charges interest rates that start under 4.5 percent for student loans, subject to change, and carry no additional fees.

Long said he thinks there’s a market for his product. “Definitely, I think there’s potential. There’s definitely a growing interest in doing private student loans. Their members are telling them that they need this type of loan,” he said.