First Marblehead Cuts 500 Jobs

The Boston-based student loan provider First Marblehead is the latest local casualty of the global credit crunch.

The company laid off 500 people yesterday-- about half its workforce. Most of those layoffs were at First Marblehead's Medford office.

Officials say the layoffs came in part because Bank of America, which used to sell First Marblehead's packaged loans, has decided to stop offering private student loans.