Off the Record, On the Issues with John

​A new bill could let credit unions offer longer loan terms to lower monthly payments for members.

By John Alexander, DakCU Director of Legislative & Regulatory Affairs

Expanding Access to Lending Options Act - Senate Bill (S.) 3616 and House Bill (H.R.) 4167
What changes if the bills pass
Today, the Federal Credit Union Act generally limits federal credit union loan maturities to 15 years, with specific exceptions. 
 
S. 3616 would add authority for the National Credit Union Administration (NCUA) Board to allow federal credit union loans up to 20 years through regulation. H.R. 4167 would change the baseline from 15 years to 20 years and states “or longer, as the Board may allow by regulation,” while emphasizing safety and soundness. 

America’s Credit Unions has framed this as maturity flexibility that can lower payments and expand access, with Sen. Kevin Cramer as a Senate sponsor. 
 
What would change for key loan categories:
1. Student lending and student refinance
What changes: Federal credit unions could offer longer amortization options (up to 20 years, and potentially longer if NCUA permits under the House language). 

What that does in practice: A longer term can reduce the monthly payment on a refinance or private student loan, which can help a member qualify based on debt-to-income. The tradeoff is higher total interest paid over the life of the loan because interest runs for more months.

2. Agricultural lending
What changes: Federal credit unions could better match loan terms to the useful life of farm-related purchases, especially higher-cost equipment, improvements, and long-cycle investments where a 15-year cap can force a payment that is unnecessarily high. 

What that does in practice: A longer term can lower the monthly payment and reduce cash flow stress during seasonal or commodity price swings. The risk tradeoff is longer exposure to collateral value changes and income volatility, so underwriting and collateral controls matter more, not less.

3. Environmental and energy improvement lending
What changes: Federal credit unions could spread repayment over a longer period for qualifying projects and upgrades that pay back over time, such as energy efficiency improvements or environmental mitigation work that members finance to reduce long-term costs. 

What that does in practice: Lower monthly payments can make projects pencil out for households and small operators. The tradeoff is that the credit union carries longer-duration risk, so structure, documentation, and realistic savings assumptions become more important.

4. Small business and member business lending
What changes: Federal credit unions could offer longer-term structures for eligible business-purpose credit when a 15-year cap pushes payments too high for startups or expansion plans. 

What that does in practice: Longer maturities can improve affordability, improve approval rates for otherwise viable borrowers, and let repayment better align with business cash flow. The tradeoff is concentration and duration risk, plus more time for the underlying business to face market shocks. Underwriting standards and portfolio limits remain the primary safety tools.

Plain-English bottom line
If these bills pass, the practical change is simple: federal credit unions get more room to use longer terms so payments can be lower, especially on large, long-horizon needs. The policy tradeoff is also simple: lower payments usually mean more total interest and longer risk exposure, so the safety and soundness frame stays central. 

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March 25, 2026 | 2 p.m. ET / 1 p.m. CT  / 12 p.m. MT / 11 a.m. PT
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