SOURCE: The First Marblehead Corporation
BOSTON, MA--(Marketwire - Jun 6, 2012) - The First Marblehead Corporation (NYSE: FMD) today announced that it has entered into a loan program agreement for the Texas Extra Credit Education Loan Program with Higher Education Servicing Corporation ("HESC"), a Texas-based non-profit organization. The loan program was launched on June 1, 2012, in time for the upcoming academic year.
Based on First Marblehead's Monogram® platform, the Texas Extra Credit Education Loan is a new private education loan program designed specifically for students attending an approved college or university in Texas as well as for Texas residents attending approved colleges or universities anywhere in the country. Under the loan program agreement, First Marblehead will perform a range of services in support of this loan program, including loan processing, portfolio management and program administration services.
"As the loan funding marketplace continues to evolve, quality organizations such as HESC, who possess deep roots in the higher education community, are seeking new ways to serve their constituencies," said Daniel Meyers, First Marblehead's Chairman and Chief Executive Officer. "By combining a flexible program design tailored to meet their risk and economic goals with an industry leading application and disclosure process, our Monogram platform provides these institutions with the types of high quality products capable of filling that need."
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. Through its subsidiary, Union Federal Savings Bank, First Marblehead offers private education loans, residential and commercial mortgage loans, and retail savings, money market and time deposit products. For more information, please see www.unionfsb.com. First Marblehead also 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.
About Higher Education Servicing Corporation (HESC) - Since its inception in 1978 as a private, non-profit organization, HESC has performed as a loan servicing agency for federal and private student loans to ensure Texas students and families have access to higher education. In addition, HESC administers education outreach activities throughout Texas to educate and inspire students to achieve a higher education by promoting a college-going culture through educational outreach activities, services and community partnerships. For more information about HESC or the Texas Extra Credit Education Loan Program, please see www.texasextracredit.com.
Statements in this press release regarding the loan program (the "Loan Program") contemplated by the loan program agreement (the "Program Agreement") among First Marblehead, First Marblehead Education Resources, Inc. and HESC, including statements regarding the expected implementation of the Loan Program and the provision of services by us pursuant to the Program Agreement, 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 historical performance and on our plans, estimates and expectations as of June 6, 2012. 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, estimates, intentions or 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 actual financial or operating results, including revenues or facilitated loan volumes related to the Program Agreement, 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 successful marketing of offerings pursuant to the Program Agreement; the time, emphasis and resources the parties devote to their marketing efforts; demand for tuition payment plans and private education financing generally; and the other factors set forth under the caption "Part II - Item 1A. Risk Factors" in First Marblehead's quarterly report on Form 10-Q filed with the Securities and Exchange Commission on May 10, 2012. We specifically disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release, and you should not rely on those statements as representing our views as of any date subsequent to the date of this press release.