CFSI Collegiate Funding Services (MM)

Platform, Available Through CFS-SunTech Servicing, Benefits Students, Financial Aid Officers and CFS-SunTech Clients FREDERICKSBURG, Va., Aug. 23 /PRNewswire-FirstCall/ -- Collegiate Funding Services, Inc. (NASDAQ:CFSI) today announced the launch of an in-school student loan origination platform through its wholly owned subsidiary, CFS- SunTech Servicing LLC. (Logo: http://www.newscom.com/cgi-bin/prnh/20050714/DCTH039LOGO ) With this new platform, CFS can offer its college partners a seamless, paperless transaction for originating and disbursing in-school loans made under the Federal Family Education Lending Program. Adaptability of the new system allows CFS-SunTech Servicing to also provide this service for other FFELP lenders and their customers. CFS-SunTech services approximately $12 billion in student loans for more than 460,000 borrowers. CFS-SunTech is one of only two student loan servicers that have been publicly rated in Moody's Investor Service's SQ1 category for servicing of FFELP loans. CFS-SunTech has originated federally guaranteed consolidation loans since 1990, but had previously completed all in-school FFELP loan originations through a third party. "By maintaining our own origination platform, we gain greater control over the service we offer our student, parent, college and third-party customers," said John R. Elam, executive vice president of Collegiate Funding Services and president of CFS-SunTech. "Using the new platform, we can rapidly originate and disburse a loan and disburse funds in accordance with each partner's specific requirements." "We believe the capabilities of the new CFS-SunTech origination platform will enable our company to further penetrate the in-school channel for education financing, further leveraging our investment in SunTech," said J. Barry Morrow, president and chief executive officer of Collegiate Funding Services, Inc. "We continue to identify strategic solutions that provide students and their families with access to higher education funding through channels that are convenient for them." The new CFS-SunTech origination platform uses the AppWorks origination system developed by V-Tek Systems Corporation. AppWorks is used by many of the nation's largest student loan lenders and servicers. About Collegiate Funding Services Collegiate Funding Services is a leading education finance company dedicated to providing students and their families with the practical advice and loan solutions they need to help manage and pay for the cost of higher education. Collegiate Funding Services also offers a comprehensive portfolio of education loan products and services -- including loan origination, loan servicing and campus-based scholarship and affinity marketing tools -- to the higher education community. As of June 30, 2005, Collegiate Funding Services had facilitated the origination of more than $20 billion in education loans; the company currently manages almost $12 billion in student loans for more than 460,000 borrowers. For additional information, visit http://www.cfsloans.com/ or call 1-888-423-7562. Forward-Looking Statements This news release includes "forward-looking statements" about Collegiate Funding Services, Inc. within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used in this release, the words "looking forward," "expects," "plans," "intends," "believes," "forecasts," or future or conditional verbs, such as "will," "should," "could" or "may," and variations of such words or similar expressions are intended to identify forward-looking statements. Among the key factors that may have a direct bearing on the company's operating results, performance or financial condition are (1) changes in terms, regulations and laws affecting student loans and the educational credit marketplace; (2) changes in the demand for educational financing or in financing preferences of educational institutions, students and their families; (3) changes in the credit quality or performance of the loans that the company purchases, retains, services and securitizes; or (4) changes in interest rates and in the securitization or secondary markets for education loans. Important factors that could cause the company's actual results to differ materially from the forward-looking statements the company makes in this release are set forth in the company's filings with the Securities and Exchange Commission, including in the section entitled "Risk Factors" in the company's Quarterly Report on Form 10-Q for the Quarter Ended June 30, 2005. The company undertakes no obligation to update or revise forward-looking statements which may be made to reflect events or circumstances that arise after the date made or to reflect the occurrence of unanticipated events unless the company has an obligation to do so under the federal securities laws. http://www.newscom.com/cgi-bin/prnh/20050714/DCTH039LOGO http://photoarchive.ap.org/ DATASOURCE: Collegiate Funding Services, Inc. CONTACT: Investors: Edward Nebb of Euro RSCG Magnet, +1-212-367-6848, , for Collegiate Funding Services, Inc.; or Ann Collier, Senior Vice President of Collegiate Funding Services, Inc., Phone: +1-540-368-5970, Fax: +1-540-368-5963, Web site: http://www.cfsloans.com/

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