In this issue:

• Introduction
• Private Student Loan Overview
• A Word from our Sponsors
• Privacy and Subscription Information
• Back Issues
• Sponsor this newsletter!

Introduction

Welcome to the August 2004 issue of The Financial Aid News. As we're sure you're well aware, the fall semester is just around the corner, and we want to take some time to ensure you have everything you need for student loans as the first tuition invoices get mailed. Did you know that private student loans can fund in as little as 5 business days? It's true - so if you have a tuition bill that's larger than you expected, you can get help right away with a private student loan. Read the Private Student Loan Overview article in this month's issue for more.

This issue is shorter than normal because of the incredible popularity of private student loans - we're keeping busy meeting your needs and answering your questions.

Have you visited FinancialAidNews.com? The Financial Aid News web site provides you with the back issues of Financial Aid News, so that if you missed an issue or your email address unexpectedly changed, you'll still get to read the articles you need. As always, please share The Financial Aid News with your friends, family, and colleagues, by simply forwarding this message, or letting them know to subscribe by visiting www.FinancialAidNews.com today!

Enjoy this month's newsletter!

The Financial Aid News
1250 Hancock Street, Suite 703N
Quincy, MA 02169

Private Student Loan Overview

Whether this is your first year at a college or university or your last, you are bound to have "surprise" expenses that you did not factor into your educational costs. Tutors, computers or software, books, transportation needs—the START Alternative College Loan is a flexible supplement to your student aid package to help cover those expenses not met by your existing student aid package.

With a fast and easy application process, generous and flexible repayment terms, and competitive interest rates, our goal is to help you achieve your education goals.

Extra Benefits of the Alternative College Loan:

• We send these funds directly to you - you get your loan proceeds faster!
• Private student loans are based solely on your credit, and do not require you to go through the FAFSA financial aid qualification process.
• Private student loan programs are accepted at all TERI certified schools, without the hassle of determining which federal financial aid program your school belongs to.

Apply now for this program!

Alternative College Student Loan Program Details

Advantages

• Competitive interest rates
• Fast, easy, no hassle application process
• No application fees or other out-of-pocket fees
• Funding in as few as 5 days from receipt of application
• Preliminary approval in minutes if applying by Web or phone

Got past due balances? The START Undergraduate can be used to finance any portion of the current academic year’s educational expenses as well as to pay for balances from previous academic periods.

You don’t have to be currently enrolled to cover past due balances. After applying, a copy of the past due invoice from the appropriate academic period must be provided. In addition, the TERI-approved school must verify the details of the loan for the period in question. Apply for past due balances separately from a current or upcoming-year loan. If you’re not currently enrolled in college, the only available repayment option listed above is "Immediate repayment”. (see repayment example below)

Flexible Repayment Terms

• Choose from 3 different repayment options, including payment deferral until six months after graduation or you leave school
• No pre-payment penalties
• Minimum monthly payment as low as $25 (see repayment example below)

Loan Limits

• Borrow annually up to the lesser of $30,000 or the estimated annual cost of attendance
• $130,000 aggregate maximum borrowing limit
• $1,500 minimum loan amount

Eligibility

• An undergraduate student enrolled in a degree or certificate program
• Enrolled at least half-time as defined by your school
• Attending a TERI-approved school* (call 1-800-255-TERI to confirm eligibility of school)
• Proof of enrollment must be provided
• You must meet the credit guidelines requirements below: (a co-signer may be required)
• Have a satisfactory credit, residence and employment history of at least two years,
• Have proof of current income (If self-employed, have been in business for at least two years), and
• Are a U.S. citizen or permanent resident and have resided in the U.S. for the previous two years, or, you are an international student with a qualified credit-worthy U.S. citizen or permanent resident co-signer.

Deferment Options

Select a repayment plan to fit your financial situation.

Option 1: Immediate Repayment

• Allows maximum savings over the life of the loan.
• Pay principal and interest in a fixed monthly amount beginning approximately 45 days after funds are disbursed.

Option 2: Interest-Only Repayment

• Allows low payments during school to help reduce overall debt.
• Defer principal and pay only interest while you are enrolled in school for up to four consecutive years (up to five years if enrolled in a five-year program). Interest payments begin approximately 45 days after disbursement. Repayment of principal and interest begins approximately 45 days after graduation or withdrawal from school.

Option 3: Deferred Principal & Interest Repayment

• Allows you the convenience of delaying repayment.
• Make no payment while in school for up to four consecutive years (up to five years if enrolled in a five-year program). Repayment of principal and interest begins approximately 180 days after graduation or withdrawal from school. The interest on deferred loans is capitalized quarterly and at the beginning of repayment.

Frequently Asked Questions About Alternative Student Loans

1. Who is eligible for this loan?
   1. What information do I need to apply?
2. What are the fees for this loan?
3. What are the repayment options?
4. Is this loan need-based?
5. What do I do if I have bad credit?
6. Who is a qualified co-signer?
   1. What are the obligations of a co-signer?
7. What do I do if my school/program is not listed?
8. How much money can I borrow?
9. Can I get a paper application?
10. How long does it take to get the loan?
11. What is the LIBOR mentioned in the rates?
12. I received a message saying I was declined, what do I do?
13. How high can the interest rate go?

1. Who is eligible for this loan?

This loan is available to US citizens and permanent residents attending schools within the United States of America. A co-signer is strongly recommended. International students should visit www.InternationalStudentLoan.com

1.1 What information do I need to apply?

The following information will be needed when you apply. When you apply with a cosigner, you will need the same information for your cosigner.

• Full Name
• Social Security Number
• Date of Birth
• Permanent Address and Number of Years at that Address
• Monthly Rent or House Payment
• Home Phone Number
• Occupation / Position
• Employer and How Long Employed
• Business Phone
• Gross Annual Income
• Reference: Nearest Relative or Friend Not Living with You, Must be Different than Reference for Cosigner (Name, Address, Home / Business Phone Number

2. What are the fees for this loan?

Origination fees vary based on the loan you are applying for, your credit rating, and the repayment option selected. Please see our Rates and Fees page as well as individual program pages for more information.

3. What are the repayment options?

K-12 Repayment Terms

• Immediate repayment after loan disbursement
• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

Undergraduate Repayment Terms

• Choose from 3 different repayment options, including payment deferral until six months after graduation or you leave school
• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

Graduate Repayment Terms

• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

Continuing Education Repayment Terms

• No pre-payment penalties
• Minimum monthly payment as low as $25 (click here for more detailed information)

When you apply online, you can specify which option you would like.

4. Is this loan need-based?

No! The Alternative Student Loan is a credit-based loan, relying on the credit rating/score of the student (or co-borrower, if applicable) or parent (for K-12 borrowers). This is one of the best features of the Alternative Student Loan - when Uncle Sam says no even though you have good credit, we say yes!

Do you know what your credit score is? Click here to request a credit report for $13.95.

5. What do I do if I have bad credit?

First, review your credit repair options. There are several tutorials online which offer helpful credit repair tips - visit StudentPlatinum.com for more information. If you cannot repair your credit quickly, you can still receive the loan with a qualified co-signer.

Apply now with a cosigner!

6. Who is a qualified co-signer?

A qualified co-signer is any person with at least US$18,000 in annual income over a two-year history, plus a good credit history (no late payments, defaults, bankruptcies, or adverse judgements) at least two years long, who has been a US citizen/permanent resident (Green Card) for at least two years, and a debt-income ratio less than 40%.

6.1 What are the obligations of a co-signer?

Co-signers are in fact co-borrowers and are jointly and severally liable for the loans. If the primary borrower has poor credit or no credit, a co-signer guarantees the lender that if the primary borrower does not make payments, the co-signer will assume the loan obligations and make payments on it in the primary borrower's place.

7. What do I do if my school/program is not listed?

Contact your school's financial aid office and have the Director of Financial Aid (or equivalent administrator) apply to TERI for school certification. School certification can take as long as 30 - 60 days, so if you know you will need a loan in a few months, contact your school now!

Click here to check if your school is eligible!

8. How much money can I borrow?

Up to US$30,000 per academic year, with a maximum total of US$130,000 overall. Undergraduate and graduate borrowers may not borrow in excess of the estimated annual expense of the program they are enrolled in.

9. Can I get a paper application?

Yes!

Simply download the Adobe Acrobat PDF application, fill it out, and fax it back to us. The fax number and directions are included in the PDF.

• K-12 Paper Application
• Undergraduate Paper Application
• Graduate Paper Application
• Continuing Education Paper Application

Remember, you can apply by fax, telephone (866-301-3637), or online! If you have questions about the application as you're filling it out, call us toll-free!

10. How long does it take to get the loan?

It varies depending on several factors:

• Your credit history and rating
• Your school
• The amount of funding you have requested

Generally, loans are approved usually between 5 and 10 business days, but extenuating circumstances can prolong the process up to 25 business days.

To improve the chances of approval and potentially expedite the loan approval process, we recommend applying with a co-signer.

11. What is the LIBOR Index mentioned in the rates?

London Inter Bank Offering Rate (LIBOR) Index is an average of the interest rate on dollar-denominated deposits traded between banks in London. The LIBOR Index is an international index, which follows the world economic condition. It allows international investors to match their cost of lending to their cost of funds.

12. I received a message saying I was declined, what do I do?

Simple! You need to locate a creditworthy cosigner and reapply online. Doing so will improve your chances of approval.

13. How high can the interest rates go?

The interest rates for private alternative student loans are based on two variable factors, the LIBOR Index rate and your credit rating. Your credit rating makes the most difference! If you have less than perfect credit, your rates will be higher by as much as 3%, so it is strongly advised that you get a qualified co-signer.

Learn more, read frequently asked questions, or apply today for an alternative student loan at:

http://www.AlternativeStudentLoan.com

And now a word from our sponsors...

Find Scholarships!

Early in the year 2000, a group of concerned education professionals, parents, and students met to discuss how to better serve the needs of college undergraduate and graduate students and college-bound high school seniors as they look for ways to pay for their education.

After taking a close look at both the fee-based and the "free" scholarship search sites already available on the Internet, we recognized that many of those services do not provide quality results. Often the search results generated on those sites are riddled with outdated and inaccurate information, and often the results do not match the student profiles.

Another issue of concern when evaluating the existing sites was privacy. Although the use of profile-matching technology when searching for scholarships requires users to submit personal information, we were troubled that many of the free scholarship search services then sell or distribute students' personal information in order to generate revenue.

And so, having seen first-hand how difficult (and risky!) it is for parents and students to find genuine leads for scholarship possibilities, we agreed that there must be a way to help. We figured that with the right technology and search processes and the right system for research and data entry, a secure and time-saving accurate scholarship search service could be built. We then decided to build a Scholarship Experts--an Internet service that could instantly provide accurate and tailored scholarship search results without compromising the privacy of students and parents.

Try it today!

Visit: http://www.financialaidofficer.com/scholarship_search/

Traveling Abroad?

Make sure you're covered with international travel medical insurance! InternationalStudentInsurance.com provides you with comprehensive coverage options, from short term policies for those vacations in the Caribbean to multi-year plans for students studying long term abroad.

Visit: http://www.InternationalStudentInsurance.com

Public Service Announcement

Are you an American citizen/permanent resident that is eligible to vote this fall? Register to vote in the upcoming elections.

http://www.rockthevote.com/rtv_register.php

The Financial AId News does not endorse any political position or stance, except to say that all eligible citizens should participate in the electoral process, college students included. Please vote. If you are not eligible to vote, please encourage all your friends and family members that are eligible to vote!

Alternative Student Loan Program Notes

The Alternative Student Loan program is open to all college and graduate students, as well as continuing education students and parents of K-12 students, attending TERI-approved schools. A co-signer is strongly recommended. The lender for this loan program is Charter One Bank, N.A., a Member FDIC and Equal Opportunity Lender. Alternative Student Loans are guaranteed by TERI, The Education Resources Institute, Inc., a non-profit association.

http://www.AlternativeStudentLoan.com

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