The First Marblehead Corporation

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The FirstMarbleheadCorporation

• Pending Federal Private Student Loan Legislation
  Disclosure Requirements and Comparison
• NCHELP Legal Conference
• San Francisco, California
• March 31-April 1, 2008
• Steven Scott
• Vice President, Corporate Law

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Contents

• Proposed Disclosure Requirements
• Noteworthy/Problematic Disclosure Requirements
• Principal Differences Between House and Senate
  Bills
• Sample Loan Process Flow

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Proposed Federal Disclosure Requirements
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Proposed Federal Disclosure Requirements (cont).
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Proposed Federal Disclosure Requirements (cont).
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Noteworthy/Problematic Disclosure Requirements

• Requirements for a co-borrower, including any
  changes in applicable interest rate without a
  co-borrower
• Whether interest will accrue while the student is
  enrolled and P I payments required while
  enrolled
• Total cost of the loan calculated using the
  principal amount and the maximum interest rate
  offered by the lender and calculated with and
  without capitalization of interest if there is an
  option to postpone interest payments
• Estimate of the total amount for repayment, at
  both the interest rate in effect on the date of
  approval and at the maximum possible rate of
  interest offered by the lender, if it may be
  determined, or a good faith estimate
• The maximum monthly payment, calculated using the
  maximum rate of interest offered by the lender,
  if it may be determined, or a good faith estimate
• Statement that an institution of higher education
  may have school-specific education loan benefits
  and terms not detailed on the disclosure form

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Principal Differences Between Senate and House
Bills
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Principal Differences Between Senate and House
Bills (cont.)
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Principal Differences Between Senate and House
Bills (cont.)
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Sample Loan Process Flow