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1. Team Energy Advances Me Federal Perkins/NDSL Assignments TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

2. Agenda Documentation - required and optional for assignment Promissory Notes Mailing Directions Cure Process Resubmission Procedures Payments From Borrowers Information Sources Default Date Calculation Liquidation Procedures Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

3. Federal Perkins Loan Program/NDSL Accounts Eligible for Assignment • Amount Outstanding Not less than $100.00 • Account accelerated or fully mature • Borrower’s social security number on file (if it’s mandatory and social not required when money borrowed will accept) • Original Promissory note, “certified true copy”, or disbursement records • Not being able to collect despite having followed due diligence procedures (including at least a first level of collection and litigation if appropriate) • (Mandatory) At least 7 years past due and no payment in the last 12 months. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

4. Perkins Loan Program/NDSL Assignment Submission Procedures Summary Listing of Required Documentation A letter informing the borrower of the intent to assign the loan must be sent 90 days prior to assignment submission. 1. Submission Package Manifest and Certification Page. 2. Perkins Assignment Form Expiration Date: 06/30/2009, original and photocopy. 3. Original Promissory Note(s); certification/audit of E-signature process. 4. Judgment Information (if applicable);  5. Bankruptcy Information (if applicable);  Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

5. 34 CFR 674.19(e). Summary Listing of Optional Documentation 6. Due Diligence Documentation (if applicable). 7. Disbursement Records 8. Signed Repayment Schedule 9. Complete Repayment History 10. Acceleration Notice 11. Documentation of Recall   12. Approved Cancellation Documentation Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

6. Description of Due Diligence Documentation (if applicable) If your institution had a cohort default rate below 20% as of June 30 of the second year preceding the year in which the assignment submission is made you are not required to submit documentation of due diligence activities. However, your institution is required to follow the appropriate due diligence procedures. Example submission 2/08, two years prior 6/30/07, 6/30/06. If your institution had a cohort default rate of 20% or higher, the institution must provide documented proof of the additional required due diligence steps on assigned loans. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

7. MAILING DIRECTIONS  Accounts submitted for assignment are to be mailed to the following address: U.S. Department of Education Perkins Loan (NDSL) Assignment Processing Center P. O. Box 4136 Greenville, Texas 75403-4136 Do not contact this address in writing or by telephone to inquire about the status of assignments or to clarify why assignments are rejected (See "Information Sources"). Recall the account from any outside firm 60 days prior to certification date. Be sure to code for pending assignment so as not do duplicate in NSLDS. *Delivery of assignment submissions can only be made to the listed Post Office Box. Commercial carriers (such as Federal Express, UPS, etc.) will not be able to deliver to this Post Office Box. Therefore, we suggest that you mail accounts through the U.S. Postal Service, "Return Receipt Requested". Assignments mailed to ED Regional Offices or to the ED Headquarters Office in Washington, D.C. will be returned to the institution. Contact Borrower Service Customer Service to confirm paid in full status. To check status or reason for rejection contact the Washington, DC address and phone number in information sources. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

8. GENERAL INFORMATION A. Cure Process for Assigning Defaulted Loans If an institution holds defaulted loans for which mandatory due diligence actions were not performed in a timely manner in prior years, the following "cure" process may enable the institution to assign these loans: 1. The institution must locate the borrower. Location is proven by one of the following:  a) Postal receipt signed by the borrower; b) Documentation of conversation that includes the borrower’s current address; or c) Documentation from an address-search servicer (non- IRS) that includes the borrower's current address.  NOTE: If the institution cannot locate the borrower, evidence of address search attempts will suffice. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

9. 2. The institution must send the borrower a letter informing the borrower of the loan's default status which must be resolved.  3. The institution must send the borrower a copy of the signed promissory note along with a new repayment schedule to sign and return. 4. If there is no response to these communications, the institution must initiate collection procedures, including overdue notices, account acceleration, collection agency referral, credit-bureau notification, litigation (if applicable), and recall. 5. The institution must provide documentation that steps 1 through 4 above have been completed. The information must be labeled as “Due Diligence Using Cure Process”. 6. The institution must label each completed Perkins Assignment Form "Cure Process Submission" in large print at the top of the form. It should be understood that the cure process is equivalent to reworking the loan and, with the exception of the letters sent during the grace period, does not relieve the institution from repeating those due diligence activities it cannot document. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

10. B. Resubmission Procedures   If an account is rejected and the institution wishes to resubmit that account, corrections can be made directly on the returned Perkins Assignment Form, on a computer-generated facsimile or a photocopy of the Perkins Assignment Form. C. Notification to Borrowers of Assigned Loans The institution must notify borrowers of the pending assignment of their loan(s) to ED, such notification should take place at least 90 days prior to assignment of the loan. Any payments received by the institution or its servicer after the certification date on the Perkins Assignment Form become the property of ED, unless ED rejects that account. D. Payments from Borrowers Received after Assignment Payments from a borrower received by an institution or its servicer after the borrower's account has been assigned to ED should be forwarded, as soon as possible, to:National Payment Center P. O. Box 4169 - Perkins Loan (NDSL) Greenville, Texas 75403-4169 Each payment submission must clearly identify the borrower's full name, Social Security number, and the type of loan to which the payment is to be applied. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

11. INFORMATION SOURCES Questions regarding the assignment process as it pertains to the rest of the student financial aid award process or questions concerning the management of student loans not assigned to ED (for example, validity of certain types of promissory notes) should be directed either in writing or by phone to the ED Federal Student Aid Regional Office serving your region. More specific questions pertaining to the procedures for assignment of accounts, or pertaining to the status of your assignment submissions, or pertaining to the correction of rejected submissions, can be directed to Borrower Services, Collections Group, at the ED Headquarters Office (202) 377-3373. Written inquiries should be mailed to: Federal Student Aid U.S. Department of Education Borrower Services, Default Resolution Group Perkins Loan Assignments 830 First Street, N.E. Washington, D.C. 20202-5320 All inquiries must include the institution’s Serial Number. For assignment verification on accounts submitted greater than 60 days, please a request to (903) 454-5384 to the attention of ED/OSM. The fax must include the student(s) name(s) and Social Security Number(s) for research. Include a return telephone number and fax number to provide status. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

12. CALCULATING THE DATE OF DEFAULT Default in the Federal Perkins Loan Program is defined as “the failure of a borrower to make an installment payment when due or to comply with other terms of thepromissory note or written repayment agreement.” For assignment purposes, an account is considered in default the DAY after a payment is missed. In cases in which the borrower was considered to be “in default” but then made a few payments under SAR, the date of default becomes the day following the day on which the first scheduled payment due was not made. In cases in which the borrower made sporadic payments following the default date outside of any agreed upon repayment arrangement and due diligence should have continued, the date of default remains the original date of default. IF NO PAYMENTS WERE MADE: When a borrower does not make any payments on his/her account, the date of default is the day after the first payment was due. For Example: Borrower separates 06-01-03 Grace ends 03-01-04 Payment due 04-01-04 No payment made as of 04-01-04 DATE OF DEFAULT = 04-02-04 Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

13. IF SPORADIC PAYMENTS WERE MADE: If sporadic payments were made on an account, you adjust the date of default according to the number of FULL principal payments covered. For each full payment made, the date of default is moved ahead by one payment period. For Example: Borrower separates 06-01-05 Grace ended 03-01-06 First payment due 04-01-06 No payment made as of 04-01-06 Original date of default 04-02-06 Borrower made a full payment 05-01-06 Borrower made a full payment 06-01-06 Borrower made a full payment 07-01-06 Borrower skipped payment in August Borrower made a payment 09-01-06 considered a partial payment The borrower made 3 full payments. Payments are due monthly. The original date of default is moved ahead by 3 months. If payments had been due quarterly, the date of default would be moved by 3 payment periods (of 3 months each) or 9 months. ADJUSTED DATE OF DEFAULT = 07-02-06 Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

14. ACCOUNT WITH DEFERMENT BENEFITS If the borrower has received deferment benefits, you adjust the date of default according to the number payments covered, including those covered by post-deferment grace periods.  For Example: Borrower separated 06-01-04 Grace ended 03-01-05 First payment due 04-01-05 Borrower made full payments until 09-01-05. Borrower returned to school and received student deferment. from 09-01-05 to 06-01-06. The post-deferment grace period ended 12-01-06. For purposes of assignment, the borrower would be responsible for making a payment as of 01-01-07. If he failed to make the payment, the date of default would be 01-02-07.   DATE OF DEFAULT = 01-02-07 Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

15. Example, deferment with missed payments: Borrower separated 06-01-04 Grace ended 03-01-05 First payment due 04-01-05 Borrower did not make any payments Deferment processed from 06-01-05 to 06-01-06 with 6 months grace; grace ended 12-01-06. Since payments were due prior to the deferment, the benefit does not change the default date. The borrower’s first payment was due 04-01-05 and was not paid; therefore, the date of default is 04-02-05.   DATE OF DEFAULT = 04-02-05. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

16. SECTION C – MANIFEST Instructions: Attach a manifest to the assignment form listing the loans that are being assigned. The institution name and Serial Number must appear at the top of each page of the manifest, and the manifest must be in the following format:  Borrower’s Name, and Social Security Number, Type of Loan, Interest Rate, Loan Amount Outstanding (Section D, Item # 37) and First Disbursement Date. Name SSN Type of Loan Int Rate Total Amount Due 1st Disbursement Date Brown John 123456789 P 5 $2678.37 10/15/98 Brown Mary 123456799 I 5 $1328.42 9/26/99 Total $4006.79 Under “Type of Loan” indicate P for Perkins Loans, I for National Direct Student Loans, and E for National Defense Student Loans. If a borrower has loans of different types and interest rates, list each loan separately. Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

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18. Common Errors • Failure to fill in all required fields • Financial Section D totals are not correctly calculated • Using a copy of promissory note but not a certified true copy • Different Social Security numbers with no explanation • Using old certification dates • Amounts loaned and the prom note do not agree • Missing documentation Resubmission • The same information may be used if corrected and resubmitted with in 45 days • Change the certification date and clearly indicate “Resubmission” on the envelope • A manifest and a corrections worksheet must be included • Transcript holds are acceptable until proof that the loan is paid is provided • Record retention (34 CFR 674.19 (e) states that the records must be retained for 3 years from the date of assignment (6 years after the outside audit in WI) Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

19. Seven Steps to Liquidation • Notify the Department of Ed of your school’s intent to liquidate. • Assign all of your outstanding Perkins Loans to the Department. • Continue NSLDS reporting until all your outstanding Perkins Loans have been either fully retired, accepted for assignment or purchased by your school. • Return the federal share of your school’s Perkins Loan revolving fund to the Department. • Filing the final Fiscal Operation Report. • Having and independent compliance audit conducted of all Perkins Loan funds your school has received. • Reconciling the FISAP information reported by your school with the Department data. *After the Department completes the reconciliation process and determines that your school has satisfied the liquidation requirements, they will send a letter of approval to your school.* Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME

20. Contact Information University Accounting Service P.O. Box 932 Brookfield, WI 53008 Jill McQuestion Client Services Specialist E-mail: client.services@ncogroup.com Team Energy Advances Me TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME TEAM ENERGY ADVANCES ME