First Marblehead - Alternative Education Loans

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The First Marblehead Corporation provides outsourcing services for private student lending in the United States. We help meet the growing demand for private student financing by offering national and regional financial institutions and educational institutions an integrated suite of design, implementation and portfolio management services for private student loan programs. Using our services, our clients can offer borrowers access to competitive, customized private student loan products. We receive fees for the services we provide in connection with processing loans, managing our clients’ loan programs and administrating loan portfolios. We focus primarily on loan programs for undergraduate and graduate students. Private student loans are not guaranteed by the U.S. government and are funded by private sector lenders. They are intended to be used by borrowers who have first considered other sources of education funding, including the federally guaranteed loan programs, grants and other aid.

We enable our clients to offer student and parent borrowers competitive private student loan products, while managing the complexities and risks of these products. We have developed loan processing and support systems that are designed to accommodate new clients, additional loan products and incremental loan volume. We also own a proprietary database of more than 20 years of historical information on private student loan performance, which helps us to facilitate the structuring and pricing of our clients’ loan programs and to supervise the servicing and default management processes for the loans. In addition, our proprietary database increases the efficiency of the portfolios of our clients’ loans by enabling us to provide to holders of those loans the historical payment, default and recovery data on which to base estimates as to credit losses and reserves. We have provided structural advisory and other services for 38 securitization transactions since our formation in 1991. The First Marblehead Data Services group administrates the portfolios of loans in these securitized trusts over the life of the loans to meet investor expectations.

In addition to our core private student finance business, Union Federal Savings Bank, a federally-chartered thrift located in Rhode Island, is a wholly-owned subsidiary of The First Marblehead Corporation and offers select consumer and commercial banking products.