UPDATE 1-First Marblehead posts wider-than-expected Q1 loss

* Q1 loss/shr $0.95 vs estimate loss/shr $0.05

* Unrealized loss on education loans jumps six fold

Oct 26 (Reuters) - First Marblehead Corp (FMD.N), one of the largest securitizers of student loans, posted a wider-than-expected quarterly loss, hurt by a six-fold increase in unrealized loss on education loans held for sale.

For the first quarter, the company posted a net loss of $94.1 million, or 95 cents a share, compared with a net loss of $92.9 million, or 94 cents a share, last year.

Analysts on average were looking for a loss of 5 cents a share, according to Thomson Reuters I/B/E/S.

Quarterly revenue of $13.5 million lagged Wall Street expectations of $18.8 million.

Total non-interest expense more than doubled to $150.2 million, including $121.5 million in unrealized loss on education loans held for sale.

On Oct. 16, First Marblehead sold a portfolio of private education loans with an outstanding principal balance of about $234 million for about $122 million. [ID:nWNAB0260]

In July, First Marblehead was ordered by the U.S. Office of Thrift Supervision to lower risk by reducing its concentration of private student loans. [ID:nN0296863]

Shares of the company were down 6 percent at $1.81 in trading before the bell. They closed at $1.92 Friday on the New York Stock Exchange. (Reporting by Archana Shankar in Bangalore; Editing by Vinu Pilakkott)