1. NCHER Conference Remarks Dave Hawn, Chief Executive Officer ECMC Group & Zenith Education Group June 1, 2015

2. 2 Student Lending Trends (as of 2012) 66% of graduates from public colleges had student loans 75% of graduates from private nonprofit colleges had student loans 88% of graduates from for-profit colleges had student loans Source: The Institute for College Access & Success. 2014. Quick Facts about Student Debt. http://bit.ly/1lxjskr.

3. 3 Student Lending Trends: National 2-Year Cohort Default Rates Source: Information for Financial Aid Professionals (IFAP). National https://www2.ed.gov/offices/OSFAP/defaultmanagement/defaultrates.htmlhttps://www2.ed.gov/offices/OSFAP/defaultmanagement/defaultrates.html For-profit http://www.ifap.ed.gov/DefaultManagement/press/http://www.ifap.ed.gov/DefaultManagement/press/

4. 4 Student Lending Trends: 2011 3-Year CDRs Default rates remain far too high for demographic served by career colleges and community colleges. Source: Information for Financial Aid Professionals (IFAP). 2014 Official FY 2011 3-Year CDR Briefing. http://ifap.ed.gov/eannouncements/attachments/2014OfficialFY20113YRCDRBriefing.pdf.

5. 5 Why Zenith? As a guaranty agency, saw detrimental impact of high student debt, low completion and joblessness Guaranty agency assets allow us to give back in a meaningful way Opportunity to assist an underserved student demographic Opportunity to improve upon existing models of career education

6. 6 Zenith Key Initiatives Lower tuition, grants and scholarships Tuition reduced by 20% for new Everest students Current students who complete their programs will be eligible for a scholarship providing a 20% tuition reduction, prorated for the student's remaining time in the program Created Zenith Student Grant, which offers up to $10,000 annually to students who demonstrate financial need Solutions default managemen t ECMC cohort default management program, Solutions, rolled out across all Zenith campuses More robust financial literacy program implemented LoanTracker reporting software implemented

7. 7 Zenith Key Initiatives Student Choice Identified academic programs that had not met acceptable job placement rates over an extended period of time Provided students with three options: change to another program with a credit for all tuition and fees paid; receive a full refund; or continue their studies Phasing out or capping under-performing programs Given the choice, most students remained enrolled

8. 8 ECMC Foundation $265 million endowment Our grantmaking priorities: College readiness Career readiness College retention Research on teaching and student success

9. 9 Start-up Investments Pre-K EducationK to 5 th Grade5 th to 9 th Grade 9 th to 12 th Grade Postsecondary Continuing Learning Artist Medical Education Ace Learning Company, Inc. Voxy, Inc. 2U, Inc. Galvanize New Engineering University Bridge International Academics Qubed, Inc. BrightBytes Three Ring Course Report General Assembly Neverware NoRedInk. Corp. Regent Education Civitas Learning TeachersStudentsAdminParents Other Company Audience: Ellevation Education