Edfinancial Services Announces Strategic Alliance with FAME

5/24/2004

Knoxville, TN – National student loan servicer, Edfinancial Services, is pleased to announce a new strategic alliance with the Finance Authority of Maine (FAME). Edfinancial Services will service loans originated through FAME’s partner lenders. FAME joins Edfinancial’s extensive list of regional and national industry partners including First Tennessee Bank, Bank of America, Union Planters Bank, SouthTrust Bank, Arkansas Student Loan Authority, Louisiana Education Loan Authority, North Texas Higher Education Authority, Hibernia Bank, Edsouth and Edamerica.

“We are looking forward to offering our unique brand of attentive, customized student loan servicing to lenders in the Northeast,” says Tony Hollin, chairman & CEO of Edfinancial Services. “FAME shares Edfinancial’s commitment to putting relationships first and enhancing student loan products and services to benefit borrowers. It’s all about expanding access to higher education.”

An independent state agency, FAME develops, administers and funds higher education programs in Maine such as the state’s 529 savings plan and the state grant program. Already functioning as a guarantee agency for lenders statewide, FAME will now serve as the state’s designated secondary market as well, having recently issued $75 million in tax-exempt bonds.

“FAME is excited to be working with Edfinancial to offer Maine students and families greater access to higher education through low cost student loans,” says Greg Gollihur, FAME’s director of education services. “Edfinancial Services has an excellent track record of providing high quality service in similar partnerships across the country.”

FAME features a 3% origination fee reduction as well as an additional .50% interest rate reduction upon repayment for Stafford and PLUS borrowers under the HELP program.

Governor John E. Baldacci of Maine has made higher education a priority during his administration, designating FAME as the state’s official student loan secondary market last year. The Governor had this to say, “Creativity and commitment are key to helping Maine achieve the goal of affordable higher education. This initiative is an example of how it is possible to help families realize their goals without additional cost to taxpayers.”

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Edfinancial Services is a private corporation headquartered in Knoxville, TN. Servicing student loans nationwide, Edfinancial Services administers student loan volume in excess of $7 billion.