First Marblehead Announces Planned $1.68 Billion Securitization of Private Student Loans

BOSTON — The First Marblehead Corporation (NYSE: FMD), a leading provider of outsourcing services for private, non-governmental education lending, today announced the scheduled closing of a securitization enabling the purchase of private student loans by The National Collegiate Student Loan Trust 2005-3 (the Trust) and the related issuance of Student Loan Asset Backed Notes by the Trust and Student Loan Asset Backed Certificates by the related NCF Grantor Trust 2005-3. The Trust has filed with the Securities and Exchange Commission a preliminary prospectus supplement regarding this transaction. The Company expects the transaction to close on or about October 6, 2005.

The loans were originated from several different banks under various loan programs that were structured with the assistance of First Marblehead. The Trust expects to raise approximately $1.68 billion from the sale of asset-backed securities, and plans to acquire private student loans with a principal and accrued interest balance of approximately $1.2 billion in the transaction.

The loans are guaranteed by The Education Resources Institute, Inc. (TERI), the nation’s oldest and largest guarantor of private student loans.

A REGISTRATION STATEMENT RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AND HAS BECOME EFFECTIVE, BUT A FINAL PROSPECTUS HAS NOT YET BEEN MADE AVAILABLE. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED PRIOR TO THE TIME THE FINAL PROSPECTUS BECOMES AVAILABLE. THE INFORMATION ABOVE AND THE RELATED PRELIMINARY PROSPECTUS SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALL THERE BE ANY SALE OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH STATE.

THESE SECURITIES ARE BEING OFFERED IN CONNECTION WITH A DISTRIBUTION BY THE ISSUER AND REPRESENT NEW FINANCING.

A WRITTEN PROSPECTUS MEETING THE REQUIREMENTS OF SECTION 10 OF THE SECURITIES ACT MAY BE OBTAINED FROM JAMES MURPHY, DEUTSCHE BANK SECURITIES INC., 60 WALL STREET, 19TH FLOOR, NEW YORK, NY 10005, TELEPHONE: (212) 250-0658.

About First Marblehead
First Marblehead provides outsourcing services for private, non-governmental, education lending in the United States. The Company helps meet the growing demand for private education loans by providing national and regional financial institutions and educational institutions, as well as businesses and other enterprises, with an integrated suite of design, implementation and securitization services for student loan programs tailored to meet the needs of their respective customers, students, employees and members.

This is a “Safe Harbor” Statement under the Private Securities Litigation Reform Act of 1995. Any forward-looking statements contained herein, including statements related to our outlook for the industry and for our performance for fiscal year 2006 and beyond, are based upon the Company’s historical performance and on current plans, estimates and expectations. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved. These forward-looking statements represent First Marblehead’s expectations as of September 12, 2005. Subsequent events may cause our expectations to change, and we disclaim any obligation to update the forward-looking statements in the future. You are cautioned that matters subject to forward-looking statements involve known and unknown risks and uncertainties, including economic, regulatory and competitive and other factors that may cause First Marblehead’s performance or achievements to be materially different than those expressed or implied by forward-looking statements. Important factors that could cause First Marblehead’s actual results to differ from its expectations include the factors set forth under the caption “Factors That May Affect Future Results” in First Marblehead’s annual report on Form 10-K filed with the Securities and Exchange Commission on September 7, 2005. These risks could cause actual results of the industry or our actual results for fiscal year 2006 and beyond to differ materially from those expressed in any forward-looking statement made by or on behalf of the Company.