Federal Loan Funding Update:

T.H.E. plans to make available federal Stafford, PLUS and GradPLUS loans through the “Ensuring Continued Access to Student Loans Act of 2008.” We are now accepting applications for these federal loan programs but potential borrowers should be aware that the Department of Education will not make funds available to lenders under this program until sometime in July 2008. Until the Federal Register notice is published, as noted in DCL GEN-08-08 , we are waiting for final definition of the terms as well as guidance on the specific requirements for participation and implementation of the funding process.

T.H.E. wants to remind schools that some guarantors may be instituting a 1% default fee beginning with new loans on or after July 1, 2008. We have reached out to our guarantor partners and the following chart illustrates their position on charging the default fee, based on information available at the time of this publication. Schools may decide to change their guarantor preference and may contact our customer service experts to discuss how to go about doing this. School-based software product setups may require changes to profiles and schools may want to consult with their appropriate vendor.

This spring saw the beginning of our annual calling campaign, aimed at reaching all T.H.E. borrowers who are slated to graduate. The goal of the calling campaign is to work with graduates in setting up a personalized repayment strategy other than the standard repayment term and helping them take advantage of other options that will save them money.

This summer and fall, T.H.E. will roll out additional borrower education resources aimed at helping students better manage their money. These lender-neutral materials include online tutorials, brochures, calculators and presentations that tackle topics such as budgeting, gauging your debt, and identity theft.

From July 1, 2008 to September 30, 2008, T.H.E.’s three-month LIBOR index is 2.95%. Private loans are variable and change each quarter.

Our private loan rates are based on a spread of LIBOR rates plus an additional amount (defined in the borrower’s Truth-in-Lending Disclosure), according to the discipline of study. The interest rates for private loans are posted on our web site within the Rates/Savings sections of different loan programs and are updated each quarter to reflect the current interest rate.

Since the beginning of this year, our Corporate Presenters Joe Pruden and Erin Adams have spanned the country giving 38 presentations at 24 schools. From California to Maine, they have provided borrower education on such topics as the Roadmap to Repayment, Gauge Your Debt, Credit, Student Loan Industry Updates and others.