BOSTON – First Marblehead Corp., provider of a private label student loan platform, announced this morning it has agreed to acquire certain assets and liabilities of Cology Inc., 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 CUSO owned by University of Wisconsin CU that provides private student loans for more than two dozen of the biggest credit unions, including Alliant CU, CEFCU, Royal CU, University (of Texas) FCU, Harvard University Employees CU, Oregon Community CU and Notre Dame FCU. In the case of Notre Dame FCU, Cology originates and disburses its new student loan consolidation product.
In the twelve months 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.
Under the terms of the agreement, First Marblehead Education Loan Services LLC, a wholly owned subsidiary of First Marblehead, expects to complete the acquisition during the second quarter of fiscal 2013, and the transaction is expected to be accretive in the following year.