1. Presented by: Michael FullerFirst Marblehead www.fmd.com Sonja McMullenSallie Mae www.salliemae.com Joe StatutoWells Fargo Bank www.wellsfargo.com/student Billye Jean StroudDiscover www.discoverstudentloans.com

2. This presentation may highlight specific loan information from our four institutions and is in no way encompassing of all private loan programs in the industry. For specific details on other loan programs, please visit with your other lender partners.

3. The role of the Financial Aid Administrator has always been to assist students (and their families) in financing their higher education dreams. Today more than ever, students continue to depend on their college Financial Aid Administrator to provide unbiased advice and direction in finding available college financing options. Financial Aid Administrators are in the best position to provide available financing options to families, giving them the opportunity to choose the solution that best fits their particular needs.

4. These changes will be effective July 1, 2012 Parents will be responsible for the full 4% origination fee on all Direct PLUS Loans Graduate students will be responsible for the full 4% origination fee on all Direct Graduate PLUS Loans Prior to July 1, 2012, Grad PLUS borrowers have access to a 1.5% fee rebate making the fee 2.5% for many students. Graduate students will no longer have access to Federal Direct Subsidized Stafford Loans All Federal Stafford Loans will be unsubsidized meaning that the student will be responsible for the interest that accrues during the in-school, grace, and deferment periods. 4

5. When taking out a student loan, students and families should carefully compare all their options, including both federal and private student loans. Undergraduate Student Options: Parent borrows a Direct PLUS Loan For Parents on behalf of a student Borrow/Cosign for a Private Student Loan Graduate/Professional Student Options: Borrow a Direct PLUS Loan for Graduate and Professional Degree Students Borrow a Private Student Loan *Some Private Lenders offer a cosigner release program.

6. Parents Excellent credit looking to finance the education of their child Do not want to be the borrower Do not wish to complete the FAFSA Graduate Students Economy has increased demand for advanced degrees Enrolled in programs that lead to placement and higher income potential

7. Who can apply for this loan? Who is responsible for this loan? Parent PLUSGrad PLUSPrivate Loan ParentGraduate/Professional Student Student Borrower or Student with Parent, Relative, Other Sponsor as Cosigner if required Parent PLUSGrad PLUSPrivate Loan ParentGraduate/Professional Student Student and Cosigner

8. Enrollment Requirement: Program Eligibility: FAFSA Requirement: Parent PLUSGrad PLUSPrivate Loan At Least Half Time Varies by Lender Parent PLUSGrad PLUSPrivate Loan Yes Varies by Lender Parent PLUSGrad PLUSPrivate Loan Degree Seeking Varies by Lender

9. Fees: Reductions and Discounts Parent PLUSGrad PLUSPrivate Loan 4% Origination Fee Varies by Lender Parent PLUSGrad PLUSPrivate Loan 0.25% Auto Debit Only Varies by Lender

10. Fixed Variable Parent PLUSGrad PLUSPrivate Loan 7.90% Varies by Lender 3.25% to 13.99% Parent PLUSGrad PLUSPrivate Loan Not Available Varies by Lender 2.25% to 11.25%

11. www.myFICO.com 19.6% of the population has a credit score of 750-799 18.1% of the population has a credit score of 800-850 Borrowers or cosigners with the above credit scores may qualify for a private student loan thats priced more favorably than a Direct PLUS loan.

12. Deferment: Repayment Term: Parent PLUSGrad PLUSPrivate Loan Immediate repayment after final disbursement; may request in-school forbearance Most programs offer deferred payments while in school with an additional grace period Parent PLUSGrad PLUSPrivate Loan 10 Years Varies by Lender

13. Cosigner Release: Loan Forgiveness: Parent PLUSGrad PLUSPrivate Loan No Varies by Lender Parent PLUSGrad PLUSPrivate Loan Yes Varies by Lender

14. Does this loan help build the students credit history? Parent PLUSGrad PLUSPrivate Loan NoYes

15. Who services the loan? Parent PLUSGrad PLUSPrivate Loan U.S. Dept. of Education contracted servicers Lender

16. Consider adding comparison wording to your schools website or award letter to inform families that they have a choice in this important financial decision. There is no down side to shopping around. Applying for a private student loan does not impact eligibility for a Direct PLUS Loan Applying for multiple credit-based student loans (rate shopping) in a 30-day window is treated as one inquiry when determining a credit score * * Source: myFICO.com

17. If your school does offer students and families a lender list, make sure the information is up to date and links are accurate Prepare yourself and staff to discuss options for families that include Private and Direct PLUS loan programs Understand the different loan programs Understand the factors of the total loan cost

18. The mission of our office is to provide students and families with information and resources that will allow for a better understanding of how current financial decisions will impact future financial well-being. Our goal is to help families understand their choices, minimize student loan debt and maximize scholarship opportunities. Students and their families have choices when it comes to college financing. Every family is unique and no one solution is right for everyone. Review your options, run the numbers, evaluate your current financial situation and make the decision thats right for you. For some students there will be a financial gap between their student budget and the maximum they can receive from the Federal Stafford loans. As a result, the student and family would need to apply for an additional, credit-based, loan in the form of a Direct Parent PLUS loan or a private student loan.

19. The University of Mississippi University of Maine Drexel University Stanford Graduate School of Business University of Minnesota Texas Christian University