1. 1 Private Student Lending 101 May, 2013

2. 2 iHELP provides Private Student Loans for undergraduate and graduate school, and consolidation loans for graduates who want to simplify and reduce repayment.

3. 3 Source: US Department of Education President’s 2013 budget Private Student Loans comprise 2% of all funding Source: US Department of Education, President’s 2013 Budget Total Cost of Education, $436 billion

4. 4 4 One of the fastest growing and most attractive consumer loan markets is also one of the youngest

5. 5 5 not Demand for Student Lending is increasing at faster rate than other consumer loans Source: Quartz | qz.com

6. 6 6 not Driven by rising tuition and flat federal loan levels, demand for Private Student Loans is projected to continue to increase Source: College Board

7. 7 7 not iHELP Private Student Loans fill a critical gap between the cost of college and other forms of financial aid Family Resources$8,000 Scholarships$2,500 Federal Loan$5,500 Private Student Loan $9,000 TOTAL COST: Tuition and Room & Board $25,000 Sample Worksheet of College Financing

8. 8 Student Lending Levels: More than 70% of Student Debt is $25k or below; 87% is $50k or below Source: Federal Reserve Board of New York Breakdown of Student Debt Levels by Amount

9. 9 9 not Families with higher incomes take out higher levels of Private Student Loans; these are often a Community Bank’s best customers Source: The College Board “Who borrows most?” 2010 Family Income Levels

10. 10 not Community Bank customers have had to turn to large financial institutions and Credit Unions for their Private Student Lending “The fastest growing loan category for Credit Unions in 2012 was Private Student Loans, which jumped 35.6% for the year.” “Sallie Mae Reports Private Student Loans up 22%” “Private Student Loans increased $431 million from the prior year.” “Wells Fargo is the 2 nd largest provider of Private Student Loans”

11. 11 not Private Student Loans can open the door to providing other banking needs

12. 12 not The Value of Education: Obtaining a college degree is still the most important factor in determining an individual’s financial success

13. 13 Since 2008, 2 million new jobs for college graduates; 200,000 fewer jobs for those with high school diploma College Graduates earn $1.5 million more than those with a high school degree College graduates earn more and have higher employment than those with a high school degree

14. 14 not Investing in college delivers a return of 15.2% a year, even factoring earnings students forgo while in school “This is more than double the average return to stock market investments since 1950, and more than five times the returns to corporate bonds, gold long-term government bonds, or homeownership.” Source: The Hamilton Project, Brookings Institution

15. 15 not Through iHELP, Community Banks can help customers reach their educational and financial goals

16. 16 While providing access to a safe, profitable, and insured product

17. 17 not  Made to nonprofit colleges & universities  Credit scored  Co-signed  100%+ insured (principal and interest) iHELP Private Student Loans are low risk

18. 18 not Traditional Private Student Loans with cosigners perform the best Based on profile of loan performance rates at largest Private Student Loan provider, Sallie Mae 95% of iHELP Loans are Traditional with Cosigner

19. 19 not With iHELP, Community Banks can bring customers back

20. 20 not Originating LenderParticipating BankReferral Partner Community Banks can participate in the iHELP Program in one or more of 3 profitable ways:

21. 21 not An Originating Lender : Helps market the program Is the lender of record Owns legal title to the loan Can sell the economics of a loan to a participating bank Originating Lenders generate fee income

22. 22 not A Participating Bank : Helps market the program Provides capital to the Originating Lender Owns the economics of the loans in which it participates Participating Banks generate margin income

23. 23 not A Referral Partner: Helps market the program Refers applicants to an Originating Lender that will make the loan Referral Partners generate fee income

24. 24 iHELP Supporting Partners: Insurance ► ReliaMax Surety Company  Provides insurance coverage of 100% of principal and interest on the loans  Specializes in private student loan insurance, default prevention and default collection  Highly regulated and backed by A rated reinsurance companies

25. 25 iHELP Supporting Partners: Loan Administration & Servicing ► Student Finance Loan Corporation (SLFC)  Performs all of the underwriting and loan origination functions  Manages all aspects of loan servicing and collections  Assures regulatory compliance  Supports borrower education through RightChoice.net

26. 26 not 1.Contact iHELP to sign on as an Originating Lender, Participating Bank or Referral Partner 1.Learn how to market iHELP to your customers and community 2.Follow loan performance through iHELP reports 3.Celebrate each graduate’s success Get Started Today

27. 27 not Timing Matters: Applications for Private Student Loans spike in Spring - Summer Typical Monthly Application Trends

28. 28 not Complex loan administration and regulatory compliance provided by an ICBA Preferred Service Provider Acquire an insured asset with a solid return Loans can be insured for 100% of principal and interest by an experienced surety provider Participate in a growing and attractive market without adding any staff iHELP Private Student Lending creates a path for Community Bank growth

29. 29 not Questions?

30. 30 Kevin Moehn office: 571.313.1307 kmoehn@iHELPloan.com www.iHELPloan.com For more information: