As the economy lumbers toward recovery, one financial concern remains paramount to millions of Americans: student loans.

With outstanding student loan debt topping $1 trillion, the college loan debt crisis threatens to undermine the financial health of an entire generation. And for those entering college, the prospect of taking on hundreds of thousands of dollars in high-interest loans is not only frightening, but increasingly difficult.

Several large lenders have recently pulled out of the private student loan market, making it harder for families to find private educational loans.

But as bigger banks pull out of the private student loan market, some credit unions and community banks are moving in to fill the niche.

Three years ago, Washington, D.C.-based Independent Community Bankers of America launched iHelp, a nationwide lending program that allows students to apply for loans of up to $10,000 per year through community financial institutions nationwide.

Some credit unions are also entering the market, offering both private student loans and college debt consolidation loans at rates as low as 4.75 percent.

Last year, cuStudentLoans, a network of more than 130 credit unions offering one loan with common underwriting and pricing, launched a nationwide student loan consolidation product for college graduates.

The credit unions tout their nonprofit status, which enables them to finance student loans at lower interest rates than large banks. The effect can translate into thousands of dollars in savings in interest each year for a graduate.

It’s an attractive offer, as well as a smart way to increase credit union membership among the coveted millennial market, since the student loan programs are offered only to credit union members.

Earlier this year, lending giant U.S. Bank pulled out of the private student loan market; JPMorgan Chase announced it would limit its student lending to existing customers. The moves followed the federal government’s decision two years ago to stop guaranteeing private student loans, and the Consumer Financial Protection Bureau’s recent announcement that it plans to increase scrutiny of private lenders.

The bureau said it expects complaints about “difficulties making full payment; confusing advertising or marketing terms; billing disputes; deferment and forbearance issues; and debt collection and credit reporting problems.”

The shrinking private student lending scene has made it harder for students and their families to obtain college financing. Over the past several years, the total amount of private student loans originated has decreased from $22 billion to $8 billion.

But the exit of large lenders has created an opportunity for community banks and credit unions to gain a foothold in the private student lending market. And by keeping their interest rates reasonable, they can help ensure students will be able to pay their loans, rather than default on them.

Many students now have difficulty paying off their high-interest, private student loans. And the percentage of student loans in default has climbed to a disturbing 14 percent.

But students will continue to attend college, and the need for private student financial assistance is growing.

Community banks and credit unions have an opportunity to offer private college loans to students and their families at reasonable interest rates, and to ease the debt load of graduates as they begin their careers and adult lives.

It’s yet one more way to differentiate themselves from big banks.