Creation of New Company Reflects Restructuring

10/1/2003 


Knoxville, TN – Effective October 1, 2003, Tony Hollin, chairman & CEO of national student loan provider Edsouth, officially announces the creation of a new national lender called Edamerica to help students and families nationwide realize the American Dream through higher education. Edamerica will function exclusively as a student loan provider and should generate annual loan volume in excess of $700 million during the 2003-2004 academic year at 850 colleges and universities nationwide, making it the 17th largest student loan provider in the United States.

The newly formed Edamerica will function exclusively as a lender, whereas Edsouth will continue to exist as a secondary market. Established in 1988, Edsouth will remain an independent private, nonprofit corporation. With total assets of $2.8 billion, Edsouth recently issued $610 million in bonds in Tennessee and Florida to create access to student loan funding. Edsouth is the 13th largest holder of student loans in the country.

Furthermore, national student loan servicer, Edamerica Services, officially becomes Edfinancial Services, also effective October 1. Edfinancial Services administers student loans for 13 of the nation’s top 100 lenders, including Edamerica, Union Planters Bank and First Tennessee Bank. With nearly $3 billion in servicing volume, Edfinancial Services plans to service $5 billion by 2005. The company employs nearly 300 people at the Knoxville servicing center and satellite centers in Little Rock, AR and Jacksonville, FL.

"We're stove piping our companies to better serve our customers," says Tony Hollin, Edfinancial Services chairman & CEO. "This restructuring allows each company to streamline its operations and crystallize its focus."

All three companies, Edamerica, Edsouth and Edfinancial Services are headquartered in Knoxville, TN. Hollin serves as chairman & CEO of Edamerica as well as Edsouth and Edfinancial Services.


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Headquartered in Knoxville, TN, Edsouth is one of the nation’s largest providers of education loans. Offering low-cost student loan and benefit programs nationwide, Edsouth has helped over one million students and families realize their dreams of higher education since 1988.

 

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