Brazos Loan Servicing, Inc. Acquires College Station Servicing Assets

WACO, TX – September 8, 2010 – In response to recent changes in legislation, Brazos Loan Servicing, Inc. (BLS), a Texas non-profit corporation, has acquired certain servicing assets in College Station, TX from Graduate Leverage, LLC. With the acquisition of Graduate Leverage Servicing Center in College Station, TX, BLS will be positioned to provide unique servicing capabilities for an increased focused on private loan products, existing FFELP portfolios, and possible participation in the proposed Direct Loan Servicing contracts for eligible 501(c)(3) student loan servicers.

As part of the acquisition, BLS is acquiring loan servicing agreements for existing FFEL and private loan portfolios. In announcing the acquisition, Murray Watson, Jr. (Chairman of the Board for BLS) stated: “With the recent elimination of the traditional FFEL Program, many lenders throughout the United States have refocused their efforts on private loan programs, which remain vitally important for students who are attempting to finance higher education. Acquiring the College Station Servicing Assets will enable BLS to assist lenders in product development and the necessary analytics and detailed reporting required by investors for private loan programs. Additionally, there are billions of dollars of existing FFELP Loan portfolios that require continued attention and focus to ensure borrowers have every opportunity to satisfy their debt. BLS intends to meet this critical need of existing FFELP holders and borrowers.” BLS is governed by a five member Board of Directors comprised of Murray Watson, Jr. of Brazos Higher Education Service Corporation, Inc in Waco, TX, Tom Chase of Insurors of Texas in Waco, TX, Michael Tassone CFO of Graduate Leverage, LLC in Waltham, MA, Todd Balsley CMO of Graduate Leverage, LLC in Atlanta, GA and Ernie Beardsley in Hershey, PA. The Board of Directors of BLS appointed Ernest Beardsley, former EVP for the Pennsylvania Higher Education Assistance Agency (“PHEAA”) and a 30 year veteran in student loan servicing and student loan finance, as BLS’ President.

In addition to Mr. Beardsley, BLS has obtained the services of Mr. Garry Graham, as Executive Vice President of Operations. Mr. Graham brings his over 20 years of experience in student loans to BLS and will manage the day to day operations of the BLS servicing center in College Station. Furthermore, BLS has acquired an exceptional team of employees located in College Station who have worked together for many years and have extensive experience in student loan servicing, including working for an entity that achieved the status of exceptional performer. Mr. Roger Saylor, of Scott Balice Strategies, served as financial and strategic advisor to BLS for this transaction. Brazos Higher Education Service Corporation, Inc. in Waco, TX will be providing certain administrative services to BLS through contract such as public relations and human resources services.

To learn more about BLS servicing, contact Ernie Beardsley at 1-717-835-0350 or Kelli Villarrial, General Counsel, at 254-299-6903.

Contact:
Ellis Treway
512-380-7799
ellis.tredway@brazos.us.com

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