Edsouth, Edfinancial Services, and GSFC Form Strategic Alliance

8/7/2006

Knoxville, TN - Edsouth, the South's largest and fastest growing student loan secondary market and national student loan service provider, Edfinancial Services, are pleased to announce a new strategic alliance with the Georgia Student Finance Commission (GSFC). GSFC joins the Ed Group’s extensive list of regional and national industry partners including Arkansas Student Loan Authority, Louisiana Education Loan Authority, North Texas Higher Education Authority, Connecticut Student Loan Foundation and the Finance Authority of Maine.

Edsouth and GSFC share a common mission to expand access to higher education through low-cost student loans, outreach and support. Edfinancial Services provides economies of scale and an efficient servicing platform with enhanced flexibility for students and schools. Together, these companies will facilitate the financial aid process and provide state-of-the-industry web capabilities for students and schools.

"We're delighted to welcome the dedicated employees and management of GSFC to the Ed family," says Tony Hollin, CEO of Edsouth and Edfinancial Services. "We've worked closely with GSFC for nine years in their guarantor function. This new expanded relationship will maximize the combined resources of each organization to benefit students and families in Georgia."

GSFC funds and services 15 different low-interest education loan programs including Stafford and PLUS loans, consolidation loans and state service-cancelable loans. The partnership between Edfinancial Services, GSFC and Edsouth will generate new opportunities to market and leverage other financial aid programs that GSFC provides.

"We are very excited about this agreement," says Tim Connell, president of GSFC. "It puts us in a position to build a strong business relationship with one of the nation's leading servicers and secondary markets of education loans. That relationship will enhance our ability to offer borrowers excellent terms on Stafford and PLUS loans, as well as attractive alternative loans."

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Edsouth is one of the nation's largest providers of education loans. Offering low-cost student loan and benefit programs nationwide, Edsouth has funded over $7.1 billion in student loans enabling over a million students and families realize their dreams of higher education since 1988. Edsouth is the state designated secondary market for both Tennessee and Florida.

Since 1965 GSFC has provided more than $9 billion in financial aid to help nearly 2 million Georgians achieve their dreams of higher education. GSFC also administers multiple scholarship and grant programs, including the nationally acclaimed HOPE Scholarship Program.

Edfinancial Services is a private corporation headquartered in Knoxville, TN, with satellite facilities in Little Rock, AR and Jacksonville, FL. A top-ten nationwide student loan service provider, Edfinancial Services administers student loan volume in excess of $5.9 billion.

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