BOSTON – First Marblehead Corp., a provider of a private label student loan platform which acquired credit union student lender Cology last month, reported a loss of $13.9 million for its fiscal first quarter.
The loss was lower than an $18.8 million loss for the first quarter last year, mainly because of a $2.4 million decrease in general and administrative expenses as a result of $1.5 million in lower loan acquisition costs.
First quarter revenues were doubled to $1.2 million.
First Marblehead, which operates the Monogram student loan platform, agreed in October to acquire 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 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.