SOURCE: The First Marblehead Corporation

March 04, 2008 16:05 ET

First Marblehead Announces Plans to Offer One-Stop Loan Processing Solutions to Colleges and Universities and Student Loan Providers

BOSTON, MA--(Marketwire - March 4, 2008) - With the current credit crunch resulting in a number of student loan providers leaving the marketplace, The First Marblehead Corporation (NYSE: FMD) plans to offer enhanced, one-stop processing of student loans for colleges and universities and student loan providers across the nation.

First Marblehead currently provides its clients with an integrated suite of tailored design, implementation and securitization services for private student loan programs. Through this new loan processing program, First Marblehead expects to expand its suite of services to include new capabilities for for-profit schools and other student loan providers. Once implemented, First Marblehead's new service will offer back office support from borrower inquiry and web application to underwriting and servicing. The schools and banks are the ultimate lenders of the loans.

"One of First Marblehead's strongest core competencies is our ability to provide best in class loan processing and customer support," said Jack Kopnisky, Chief Executive Officer and President of The First Marblehead Corporation. "Many colleges have the funding to offer student loan products but are not interested in managing the overhead of the loan application process. By offering a one-stop solution for processing, we believe that we will be able to help institutions provide much needed private student loan solutions.

"Today's announcement also supports one of our top corporate objectives, which is to diversify our revenue stream by offering enhanced services and solutions that will help our clients, whether they are schools or quality student loan providers, prudently finance college education for more students and provide more value to our shareholders," added Kopnisky.

About The First Marblehead Corporation -- First Marblehead provides financial solutions that help students achieve their dreams. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs. First Marblehead supports responsible lending for borrowers and is a strong proponent of the smart borrowing principle, which encourages students to access scholarships, grants and federally-guaranteed loans before considering private education loans. For more information, go to www.firstmarblehead.com.

Statements in this press release regarding First Marblehead's plans as well as any other statements that are not purely historical, constitute forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based upon our plans, estimates and expectations as of March 4, 2008. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future results, plans, or expectations contemplated by us will be achieved. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, legislative, competitive and other factors which may cause our actual results, or the timing of events, to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include receipt of requisite regulatory approvals; the demand for, and market acceptance of, loan processing services; First Marblehead's ability to design, implement and support new loan process services operationally, including communications and information systems requirements; the time and resources devoted to the marketing of the new loan processing services; and to the other factors set forth under the caption "Item 1A. Risk Factors" in First Marblehead's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on February 11, 2008. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

Contact Information

  • Contact:

    Janice D. Walker
    Corporate Communications
    617-638-2047