--The First Marblehead Corporation (NYSE: FMD) today
announced it has entered into a three-year agreement with GE Consumer
Finance, a top provider of innovative financial solutions, to market a
full suite of Direct-to-Consumer (DTC) private student loan services
under its consumer brand, GE Money. GE Consumer Finance will offer
financing programs to a variety of education levels, including K-12,
undergraduate, graduate, and continuing education.
"Our partnership with GE Consumer Finance validates the benefits of our DTC marketing strategy and expands on the momentum we are creating in this area," said Jack L. Kopnisky, president and chief executive officer of First Marblehead. "GE Consumer Finance's program provides creative and essential education finance opportunities, tapping into various markets that have specialized needs we can fulfill."
"As a leading provider of credit services to consumers around the world, we are constantly looking for ways to enhance our product offerings," said Scott Young, senior vice president of GE Consumer Finance's Personal Finance unit. "First Marblehead provides an excellent solution that will allow us to enter the high-growth private student lending market."
Private student loans are important financing tools as they help bridge the gap between what federal student loans finance and the real, high costs of education. Private student loans can be used for most educational purchases, such as college "room and board" costs or computer system purchases, which are now required by many colleges and universities.
The GE Money Direct-to-Consumer program will be marketed nationally via the Internet and through direct mail channels to existing and potential GE Consumer Finance customers. While GE Consumer Finance will market student loans under the program, the student loans will be originated, funded, and serviced by other entities. First Marblehead will provide facilitation, securitization, and program management services and will play a critical role in advising GE Consumer Finance on its overall targeting and channel strategy and student loan Web site development.
About First Marblehead
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.
About GE Consumer Finance
With $163 billion in assets, GE Consumer Finance, a unit of General Electric Company (NYSE:GE), is a leading provider of credit services to consumers, retailers and auto dealers in 50 countries around the world. GE Consumer Finance, based in Stamford, Conn., offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance. More information can be found online at www.geconsumerfinance.com.
Statements in this press release regarding First Marblehead's agreement with GE Consumer Finance, including statements relating to First Marblehead's provision of private student loan services to GE Consumer Finance 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 June 22, 2006. 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 GE Consumer Finance loan programs; the demand for, and consumer acceptance of, GE Consumer Finance loan programs; First Marblehead's relationship with GE Consumer Finance; 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 May 10, 2006. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
"Our partnership with GE Consumer Finance validates the benefits of our DTC marketing strategy and expands on the momentum we are creating in this area," said Jack L. Kopnisky, president and chief executive officer of First Marblehead. "GE Consumer Finance's program provides creative and essential education finance opportunities, tapping into various markets that have specialized needs we can fulfill."
"As a leading provider of credit services to consumers around the world, we are constantly looking for ways to enhance our product offerings," said Scott Young, senior vice president of GE Consumer Finance's Personal Finance unit. "First Marblehead provides an excellent solution that will allow us to enter the high-growth private student lending market."
Private student loans are important financing tools as they help bridge the gap between what federal student loans finance and the real, high costs of education. Private student loans can be used for most educational purchases, such as college "room and board" costs or computer system purchases, which are now required by many colleges and universities.
The GE Money Direct-to-Consumer program will be marketed nationally via the Internet and through direct mail channels to existing and potential GE Consumer Finance customers. While GE Consumer Finance will market student loans under the program, the student loans will be originated, funded, and serviced by other entities. First Marblehead will provide facilitation, securitization, and program management services and will play a critical role in advising GE Consumer Finance on its overall targeting and channel strategy and student loan Web site development.
About First Marblehead
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.
About GE Consumer Finance
With $163 billion in assets, GE Consumer Finance, a unit of General Electric Company (NYSE:GE), is a leading provider of credit services to consumers, retailers and auto dealers in 50 countries around the world. GE Consumer Finance, based in Stamford, Conn., offers a range of financial products, including private label credit cards, personal loans, bank cards, auto loans and leases, mortgages, corporate travel and purchasing cards, debt consolidation and home equity loans and credit insurance. More information can be found online at www.geconsumerfinance.com.
Statements in this press release regarding First Marblehead's agreement with GE Consumer Finance, including statements relating to First Marblehead's provision of private student loan services to GE Consumer Finance 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 June 22, 2006. 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 GE Consumer Finance loan programs; the demand for, and consumer acceptance of, GE Consumer Finance loan programs; First Marblehead's relationship with GE Consumer Finance; 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 May 10, 2006. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this press release.
© 2006 Business Wire
