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SunTrust Banks (STI) in Atlanta will offer a new loan program that allows borrowers to refinance their existing private student loans.
August 3 -
The government-backed student loan market may be nearing a crisis, but private student loans continue to be a very good bet for lenders, according to a study released Thursday.
December 19 -
First Marblehead 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.
October 5 -
First Marblehead (FMD) in Boston plans to change its name to Collegiate Trust Corp. and initiate a reverse stock split to keep trading on the New York Stock Exchange.
November 12 -
The Providence, R.I., bank is introducing the loans at a time when regulators have been lamenting the lack of options for college graduates who are locked into high interest rates.
January 14
First Marblehead (FMD) in Boston has agreed to sell $53.9 million of private student loans to RBS Citizens Financial Group in Providence, R.I.
The sale represents roughly 73% of the private student loans held by First Marblehead's bank, Union Federal, according to the company's Thursday regulatory
"We believe these transactions, conducted at a premium to book value, confirms the liquidity available in the private student loan marketplace and reinforces our decision to generate high credit quality loans," First Marblehead Chairman and Chief Executive Daniel Meyers said in a Thursday
The $492 million-asset First Marblehead specializes in providing private student lending services to banks, credit unions and schools. The deal bodes well for the company's future, according to Sandler O'Neill analysts Christopher Donat and Robert Haderer.
"We have held the view for two years that First Marblehead needs to either access the securitization markets or sign more partnerships like the one it has with SunTrust," the analysts wrote in a Friday
"The loan sale to RBS Citizens could represent a third alternative to enable First Marblehead to scale its origination engine," Donat and Haderer wrote. "At this time we are not predicting any future loan sales, but we believe that such sales are now more likely."
The news comes in the wake of
First Marblehead