First Marblehead expects to $89 million in upfront structural advisory fees on loan securitization. The company a lender in the student loan segment expects to collect a 12.3 percent upfront advisory free from $1.03 billion bond offering backed by a variety of student loans.

The National Collegiate Student Loan Trust plans to buy student loans from JP Morgan Chase bank and Charter one Bank to the tune of $ 725 million. First Marblehead is helping the trust pool the loans into asset backed bonds. This deal will be closed around the beginning of December. Last time the securitization fees collected by First Marblehead from the trust were around 12.5 percent.

Though it is a drop compared to the previous time, its earning will be around $89 million. These figures are subject to change according to reports. The shares of First Marblehead fell by $2.36. In the past year the shares have traded in the range of $27.57 to $77.87.

The trust said that around 90 percent of the pooled loans may be direct consumer loans sold to customers; the remaining will be school channel loans. The Education Resources Institute Inc., a non profit agency sponsors the trust. It encourages banks to lend money to students by guaranteeing the loans where as First Marble corp. provides services for private, non-governmental, and educational lending in the United States. It provides loan services to the various banks and financial institutions that are the orginators for federally guaranteed student loans. Among its many clients are JPMorgan Chase, Bank of America, HSBC, Wachovia, and PNC. CVS, AAA and General motors are corporations that benefit from the education financing programs