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First Marblehead Corp

First Marblehead Corporation was a publicly traded company in the USA that operated in the student loan industry. The company was founded in 1999 and was based in Boston, Massachusetts.

First Marblehead Corporation served as a facilitator between universities, students, and investors. It acted as a partner to universities and helped them create student loan programs. The company also originated and securitized student loans, providing investors with access to the student loan asset class.

At its peak, First Marblehead Corporation was a significant player in the student loan industry, managing billions of dollars in student loans. However, the company faced significant challenges in the wake of the 2008 financial crisis. The crisis led to a decline in the demand for student loans, and increased regulations made it more difficult for the company to operate.

In 2010, First Marblehead Corporation announced that it would discontinue its lending operations and focus on managing its existing portfolio of loans. In 2014, the company sold its remaining student loan portfolio to Navient Corporation for $1.5 billion.

After the sale of its student loan portfolio, First Marblehead Corporation shifted its focus to other areas of the financial services industry. However, the company struggled to find its footing in a rapidly changing financial landscape. In 2017, the company announced that it would be acquired by the investment firm, Fortress Investment Group, for $160 million.

Today, First Marblehead Corporation no longer exists as a separate, publicly traded entity. Its legacy, however, lives on in the student loan industry, where it played a significant role in shaping the way that student loans are originated, securitized, and managed.