Now it’s easier than ever for borrowers to find borrower education resources, thanks to a new addition on our web site – the borrower education section. Designed to be easy to use, borrowers can search for materials using drop down menus either by their enrollment phase or resource type:

T.H.E.’s offices will be closed in observance of the following holidays:

• May 26 – Memorial Day
• July 3 – Day Before Independence Day
• July 4 – Independence Day

Disbursements are not affected —- our holiday tables prevent disbursements from being scheduled on designated holidays. Our web site and online origination system remain accessible during holiday hours.

Security upgrade

To better protect each borrower’s account information, T.H.E. upgraded online security. One new feature is a personalized image and phrase that tells users they are logging in to an authentic T.H.E. online account page. Another feature is a set of three security questions all users will be asked to select and answer. These answers will be used to ensure that accounts are kept secure and private so users feel safe with every transaction. As part of this implementation, all existing users will have to go through a one-time enrollment process to collect the new security information for all logins starting April 16, 2008.

Earlier in the year, we introduced a new presentation, Student loan update: understand the details behind the headlines. Now, your students can see this material in an online tutorial on our website. The tutorial takes about 15 minutes and covers:

T.H.E. is temporarily suspending our consolidation loan program due to adverse financial market conditions and legislative cuts. The combination of the financial market disruption and the legislative cuts effective October 2007 has significantly reduced our financial ability to fund these types of loans.

Private loans are variable and change each quarter. From April 1, 2008 to June 30, 2008, T.H.E.’s three-month LIBOR index is 3.67%.

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.

Each spring, borrowers in repayment receive the T.H.E. privacy statement. This year, we included our announcement regarding the temporary T.H.E. Bonus suspension with the privacy statement mailing to keep students informed.

We at NorthStar Education Finance, Inc. regret to report that, due to the ongoing disruption in the global markets, the T.H.E. Bonus will be temporarily suspended, through the Total Higher Education (T.H.E.) Loan Program. As we have stated on our web site: T.H.E. Bonus amount is based on current financial market conditions and portfolio performance and is therefore subject to change.

Join us for the most up-to-date student loan finance news from Jamie Wolfe, industry veteran and CFO of NorthStar, the provider of T.H.E. Loan Programs. Jamie will share the latest insights affecting the financing of student loans in light of the mortgage crunch and recent legislative updates.

From January 1, 2008 to March 31, 2008, T.H.E.’s three-month LIBOR index is 5.14%.

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.

Now more than ever, your students need clear, practical and unbiased information to make wise decisions about their student loans. In response to this growing need, T.H.E. continues to focus on our commitment to borrower education and customer service.

We’re strengthening our borrower education programs by creating two new positions in the debt management department:

We are proud to add Nancy Harvey as a School Relations Director for the Southeast (SASFAA) region.

Bringing more than 16 years of experience in the industry, Nancy joins T.H.E. from another lender, where she worked with schools in eastern Pennsylvania and New Jersey. Nancy also brings firsthand knowledge of T.H.E.’s benefits for schools and students: while with a previous employer, she promoted T.H.E.’s nonprofit loan programs and savings to schools in the Northeast.

“I’m excited to join the team,” says Nancy. “T.H.E. has a great reputation for serving its customers and saving students a lot of money. I look forward to helping them pursue their mission.”

Taige Thornton, president and CEO of NorthStar, which developed the T.H.E. Loan Programs, is excited to add her to the School Relations team. “Nancy’s been in the financial aid community for 16 years, so she understands how the industry has changed and is changing. She has the experience needed to help our customers adapt and find new ways to meet their goals.” Nancy Harvey can be reached at 1-866-902-6038, extension 9321. Her e-mail address is nharvey@theloanprogram.org.

T.H.E.’s offices will be closed in observance of the following holidays:

• Nov. 22 and Nov. 23 — Thanksgiving
• Dec. 24 and Dec. 25 — Christmas
• Dec. 31 — New Year’s Eve
• Jan. 1— New Year’s Day

T.H.E.’s offices will be closed in observance of the following holidays:

• Nov. 22 and Nov. 23 — Thanksgiving
• Dec. 24 and Dec. 25 — Christmas
• Dec. 31 — New Year’s Eve

From October 1 to December 31, 2007, T.H.E.’s three-month LIBOR index is 5.52%.

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 section and are updated each quarter to reflect the current interest rate.

Please be advised that we can no longer accept P.O. boxes for a private loan borrower’s permanent address.

T.H.E.’s offices will be closed in observance of the following holidays:

• July 4 – Independence Day
• Sept. 3 – Labor Day
• Nov. 22 and Nov. 23 – Thanksgiving
• Dec. 24 and Dec. 25 – Christmas
• Dec. 31 – New Year’s Eve

Disbursements are not affected —- our holiday tables prevent disbursements from being scheduled on designated holidays. Our web site and online origination system remain accessible during holiday hours.

From July 1 to September 30, 2007 T.H.E.’s three-month LIBOR index is 5.35%. 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 section and are updated each quarter to reflect the current interest rate. Below is a history of LIBOR rates we have used in the last 12 months.

Remember to stop by booth 406 at NASFAA between July 8 and July 11 and register to win one of two $500 scholarships! We’ll see you there!

We are proud to add Lacey Carter as a School Relations Director for the West region, covering the states of Alaska, Arizona, California, Hawaii, Nevada, Oregon, Utah and Washington. She will be based out of Arizona. With more than 15 years of experience in the financial aid business, Lacey most recently served as vice president of sales for another lender in Arizona. Prior to that, she worked for another leading education lender. Lacey has extensive experience in sales, marketing, product development, loan origination and customer service. She can be reached at 1-866-902-6038, extension 9262. Her e-mail address is lcarter@theloanprogram.org.

We want to remind you that T.H.E. can run loan reports on almost any loan data any time you need it. Our savings reports are also a great way to show the benefits your financial aid office provides to students every year.

Two of our most popular reports are the T.H.E. Bonus report and the GradPLUS endorser listing report.

We’re celebrating 10 years in business, and we’re proud of our achievements over the past decade. Since our founding in 1997, we’ve returned almost $190 million to students in borrower benefits. And, after becoming one of the first national lenders to introduce zero-fee loans, we started a trend that has since been copied by other lenders in the industry.

Today, we continue our nonprofit mission of lowering the cost of higher education through our real, reliable and predictable T.H.E. Bonus as well as new programs we’ve created:

The Ramen Report, our lender-neutral student blog that offers tips on making smart decisions about education financing

Electronic Loan Counselor, an online tool that helps students select a repayment strategy that’s right for them

Borrower education brochures, including our Blue Skies: A Quick Guide to Smart Borrowing

We’ve come a long way but our mission remains the same. We look forward to many more years of helping to shape the student loan industry.

T.H.E. has changed the requirement of one time-only loan options for the Residency and Relocation loan and Bar Prep loan. Effective immediately, students may request more than one Residency and Relocation loan or Bar Prep loan as long as they don’t exceed the $15,000 loan limit or the aggregate loan limits. Students will also be able to apply for a Residency and Relocation loan or Bar Prep loan at any time after graduation as long as the loans are fully disbursed within 12 months of graduating. This means that students who graduate on May 1, 2007, will be able to apply for a Residency and Relocation loan or Bar Prep loan any time before April 29, 2008, as long as the loan is fully disbursed by April 30, 2008.

As one of the top 16 lenders in the country, we at T.H.E. have received the request for information from Senator Kennedy, and we will cooperate with the Senate’s review of relationships between schools and lenders. Total Higher Education has always acted with the highest ethical and legal standards and we are confident that this inquiry will show that to be true. We have never offered illegal inducements to schools or anyone else. While we do not expect that this request will affect your school or your students (or require any effort on your part), we will keep you up-to-date as the inquiry progresses.

Come see us July 8 —- July 11 in Washington, D.C., for the annual NASFAA conference. We will be giving away two $500 scholarships, so stop in at booth 406 for your chance to win!