A new private student loan competitor has entered the market, and this one is modeling its products and services after some of the most popular private lenders. The First Marblehead Corporation Education Resources, Inc. launched a new program that focuses on broad and accurate private student loan servicing.
Owned by the First Marblehead Corporation, the subsidiary company is heading the raise^ private student loan program. How is this program different from the products offered by other competitor lenders? The basis of this program comes from twenty years of data pertaining to student loans. It tailors itself from the payment, default, and delinquency histories of proprietary private student loans.
First Marblehead Corporation Education Resources, Inc. plans on offering viable funding options to students in need of higher education financial assistance. These viable options are going to be applicable to a much broader range of students. Going off the large block of data, a tailored private student loan plan can be comprised which increases the chances of a future graduate successfully paying a loan throughout its term.
One key aspect of these Marblehead loans includes tailored interest rates for prime borrowers. It is known that super prime borrowers enjoy considerably more flexibility than their prime counterparts, but First Marblehead Corporation Education Resources, Inc. aims to provide that flexibility to the lower prime borrowers.
In order to compete even further in the market, these loans are not accompanied by origination or application fees. This is a competitive tactic used by many different private student loan lenders. All of these efforts, according to CEO Daniel Meyers, are meant to reach out to the sub-prime and prime markets which do not receive the same service as the super prime market.
These loans have flexibility in more ways than just interest rates. Borrowers have the choice between different repayment terms (three terms, in fact). On top of this, borrowers can decide on making full payments immediately, or they can opt to pay interest each month during university enrollment.
It is no surprise that First Marblehead has made its push into the student loan market since it specializes in financial services and lending. It has always offered loans under the principle that smart borrowing is the key to success, and it provides more ways to fund higher education than just private student loans such as scholarships and grants. Additionally, it has partnered with SunTrust in the past to offer student loan consolidation. All in all, it is striving to make its mark on the student loan origination, student debt repayment, and higher education financing.