plans to complete a securitization of $725 million of student loans.
Under the program, the securitization will allow National Collegiate Funding to purchase the loans and raise about $1.03 billion from the sale of related asset-backed securities. The deal is expected to be completed on Dec. 7, the Boston-based student loan servicing firm said.
The loans were originated by several different banks under loan programs structured with the assistance of First Marblehead. About 93% of the loans purchased are direct-to-consumer loans, while the remaining 7% will be "school channel" loans, First Marblehead says.
The loans are backed by Education Resources Institute, a guarantor of private student loans.