OVERVIEW
Student Loan Finance Association promotes access to higher education. As a secondary market, the company participates in the Federal Family Education Loan Program (FFELP) by purchasing student loan portfolios from commercial lenders and holding those loans throughout the repayment period.

Student Loan Finance Association makes low-cost loans to students through student loan programs. These programs offer flexible repayment options, loan consolidation and money-saving borrower benefits to make student loan repayment more affordable. Student Loan Finance Association provides financial aid assistance, support services and information to students, families, schools and lenders throughout the Northwest.

FFELP LOAN PROGRAMS
FFELP offers low cost-loans with interest rates based on U.S. Treasury bills and adjusted annually. Repayment terms are generous, with a standard 10-year term. Graduated and extended repayment plans are available. Currently there are three types of FFELP loans:

Stafford Loans provide assistance to students borrowing on their own behalf. There are two types of Stafford Loans — subsidized and unsubsidized. For a subsidize loan, the federal government makes interest payments while the student borrower is in school and in other situations. Borrowers with unsubsidized loans are always responsible for the interest. Stafford Loans have a variable interest rate with a cap of 8.25 percent.

PLUS Loans allow parents to borrow for the college expenses of a dependent student. The interest rate on PLUS Loans is variable with a cap of 9 percent.

Consolidation Loans are available for both students and parents. Loan consolidation allows borrowers to combine multiple federal education loans into one. Borrowers then make one monthly payment to a single lender and have up to 30 years to repay the loan, depending on the size of the consolidated debt. The interest rate for Consolidation Loans is determined by the weighted average of all loans being consolidated.

STUDENT LOAN FINANCE ASSOCIATION LOAN PROGRAMS
Student Loan Finance Association provides access to low-cost FFELP student loans through an alliance between a qualified FFELP lender and the Washington First, Oregon First, Idaho First and Student Loan Finance Association loan programs. Through these programs, Stafford and PLUS Loan borrowers receive immediate interest rate reductions when making loan payments through automatic deduction — 1.5 percent for both Stafford Loans and PLUS Loans. Borrowers also automatically qualify for an interest rate reduction after making the first 36 payments on time — 2 percent reduction for Stafford Loans and 1 percent reduction for PLUS Loans. As an additional benefit of this program, Student Loan Finance Association makes the first scheduled payment on a new Washington First, Idaho First, Oregon First or Student Loan Finance Association Stafford Loan after successful completion of a certified course of study.

SMART LOAN^® CONSOLIDATION ACCOUNT
Student Loan Finance Association's SMART LOAN^® Consolidation Account offers students and families in the Northwest an attractive way to combine all eligible federal student loans into one new manageable loan. Consolidation Loan borrowers make one monthly payment and can reduce their overall monthly payment by as much as 51 percent.

STUDENT INFORMATION, COUNSELING AND LOAN DEFAULT PREVENTION
Since many college-bound students are also first-time loan borrowers, Student Loan Finance Association provides informational publications, Web site resources and counseling services to help simplify complex student aid information. Students can learn more about the FFELP programs available to them, as well as develop a better understanding of their rights and responsibilities as borrowers.

ELECTRONIC SERVICES
The Student Loan Finance Association Web site, www.slfaloan.com is used to quickly communicate topical information to broad audiences. Through the Web site, students and parents can gain information about loan programs, apply online and learn good money management skills to ensure that loan repayment does not become unmanageable.