First Marblehead (FMD) in Boston has agreed to acquire certain assets and liabilities of Cology, a provider of student loan processing and servicing for more than 250 lenders, most of them credit unions.
Among others, Cology provides the processing for CU Campus Resources, a credit union service organization owned by University of Wisconsin Credit Union that provides private student loans for more than two dozen of the nation's largest credit unions. In the 12 months that ended June 30, Cology processed over 65,000 applications and disbursed more than $451 million in private student loans.
"Since the financial crisis, credit unions have demonstrated their commitment to financing high quality, credit-tested private student loans," said Daniel Meyers, CEO of First Marblehead. "Cology is a rapidly growing private student loan originator that derives the largest share of its business directly from credit unions. We believe that First Marblehead's expertise can help Cology's diverse client base better understand, analyze, control, manage and grow their portfolios."
Financial terms of the deal were not disclosed. First Marblehead expects to complete the acquisition in early 2013.