Student Loans

Farmers Insurance has branched into offering student loans.

The insurer will make college loans of up to $25,000 through its 15,000-member agent network. The loans will be underwritten by Service Financial Corp. and funded by Norwest Bank.

Farmers, the nation’s third-largest home and auto insurer, already offers auto loans and decided that student loans were a logical next step.

“Because everything is so competitive now, insurance companies are looking for additional ways to serve their customers,” said spokeswoman Diane Tasaka. “The theory is that the more they [customers] have got with you, the less likely they are to leave.”

Farmers isn’t the only insurer offering student loans; the Automobile Club of Southern California, which sells car insurance through its Inter-Insurance Exchange, offers student loans through an alliance with PNC Bank.

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Times staff writer Liz Pulliam, who covers personal finance, banking and insurance, can be reached at liz.pulliam@latimes.com.