SOURCE: The First Marblehead Corporation

January 29, 2007 12:43 ET

First Marblehead to Provide Private Student Loan Services to E-LOAN

E-LOAN to Market Direct-to-Consumer Private Education Loans

BOSTON, MA -- (MARKET WIRE) -- January 29, 2007 -- The First Marblehead Corporation (NYSE: FMD), a leading provider of outsourcing services for private, non-governmental education lending, today announced it has entered into a multi-year agreement with E-LOAN, one of the nation's premiere online consumer direct lenders. First Marblehead will provide facilitation, securitization and program management services relating to the direct-to-consumer private student loan products to be marketed by E-LOAN.

"E-LOAN is a highly trusted and recognizable brand among online borrowers, and we are very excited to be working with them," said Jack Kopnisky, president and chief executive officer of First Marblehead. "They have distinguished themselves in the market through a relentless focus on the total customer experience. We look forward to helping them provide greater access to education for students and their families."

"By offering private student loan products, E-LOAN will be able to expand the loan solutions it offers to consumers," said Mark Lefanowicz, E-LOAN's President and Chief Operating Officer. "We are looking forward to working with First Marblehead in helping students and their families close the gap between available resources and the costs of college."

E-LOAN will market financing programs for a variety of education levels, including K-12, undergraduate, graduate, and continuing education. While E-LOAN will market student loans under the programs, the student loans will be originated, funded and serviced by other entities.

About The First Marblehead Corporation

First Marblehead, a leader in creating solutions for education finance, provides outsourcing services for private, non-governmental, education lending in the United States. 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 tailored to meet the needs of their respective customers, students, employees and members.

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About E-LOAN

E-LOAN is an online consumer direct lender dedicated to providing consumers with a simple, easy and open way to obtain mortgage, auto loans, home equity loans, and online savings and certificate of deposit accounts. Since its launch in 1997, E-LOAN has drawn upon its pro consumer values to improve the lending and online savings experience in revolutionary ways. By eliminating the traditional incentive structure to charge consumers higher rates, giving consumers free access to credit scores and eliminating lender fees, E-LOAN is providing a uniquely open, fair and honest process. Protecting consumers' financial privacy is also a paramount concern, leading E-LOAN to implement industry leading privacy practices and advocate strong consumer financial privacy protection laws. Consumers have recognized E-LOAN for its trustworthiness and respect for customers. Three independent studies conducted by TRUSTe and The Ponemon Institute ranked E-LOAN as one of the Top 20 Most Trusted Companies for Privacy in America. In another independent study conducted by The Customer Respect Group, E-LOAN received the overall highest rating in the Online Customer Respect Study of North America's largest financial services firms. Since it started its operations, E-LOAN has originated and sold over $32 billion in mortgage and consumer loans.

Statements in this press release regarding First Marblehead's agreement with E-LOAN, including statements relating to First Marblehead's provision of private student loan services to E-LOAN in the future and the expected benefits of the relationship, and 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 January 29, 2007. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates 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, regulatory and competitive and other factors that may cause First Marblehead's performance or achievements, 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: the time and resources devoted to the marketing of the E-LOAN loan programs; the demand for, and consumer acceptance of, E-LOAN loan programs; First Marblehead's relationship with E-LOAN; First Marblehead's success in structuring securitization of program loans; First Marblehead's success in processing applications for program loans; and 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 November 8, 2006. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.

© 2007 First Marblehead

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    Jeffrey Landis
    Corporate Communications