MEDFORD, MA--(Marketwired - July 05, 2016) - The First Marblehead Corporation (NYSE: FMD) today announced that First Marblehead Education Resources, Inc. (FMER), a wholly owned subsidiary of FMD, has launched its new raise^ private student loan program. FMD and FMER developed the new program using over twenty years of proprietary private student loan performance data so that FMER may offer education funding options to a broader range of students than is addressed by the current market. The raise^ private student loan program provides borrowers with a compelling alternative to credit cards and personal loans, which previously may have been the only options for some students to fund their education.
"We want to provide more students in the market with access to attractive financing options. The private student loan marketplace offers many options for super prime borrowers, while many prime borrowers are left to seek financing in the general market of unsecured consumer products, which often have higher interest rates and upfront fees. We have leveraged our data so that FMER can provide a competitively priced product without upfront fees that is customized for these borrowers. It's time for the market to extend its reach beyond the super prime segment," said Daniel Meyers, First Marblehead's Chairman and Chief Executive Officer.
Approved borrowers will have the ability to select from three different repayment terms and can choose to start repayment immediately or make monthly interest payments while in school.
About The First Marblehead Corporation
First Marblehead helps meet the need for education financing by offering national and regional financial institutions and educational institutions the Monogram® platform, an integrated suite of design, implementation and credit risk management services for private label, customizable private education loan programs. For more information, please see www.firstmarblehead.com. First Marblehead supports responsible lending 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; please see www.SmartBorrowing.org. First Marblehead offers outsourced tuition planning, billing, payment technology services and refund management services through its subsidiary Tuition Management Systems LLC. For more information, please see www.afford.com. Through its subsidiary, Cology LLC, First Marblehead offers private education loan processing and disbursement services for lenders. For more information, please see www2.cology.com.
Safe Harbor for Forward Looking Statements
Statements in this press release regarding the raise^ private student loan program, 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 expectations as of July 5, 2016. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future expectations expressed or implied 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, regulatory, competitive and other factors, which may cause our actual financial or operating results, or the timing of events, to be materially different from those expressed or implied by forward-looking statements. Important factors that could cause or contribute to such differences include: the successful introduction of the raise^ private student loan program and market acceptance of the raise^ private student loan program. We specifically disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, even if our estimates change, and you should not rely on those statements as representing our views as of any date subsequent to the date of this press release.