NextStudent Graduate Loan

These repayment examples assume a variable interest rate for the Next Student Graduate Loan equal to the LIBOR Index plus (i) a margin of 3.25% for the credit-worthy program and (ii) a margin of 4.25% for the credit-ready program. The interest rates used in these examples and in effect as of 01/01/2008 are 8.27% for the credit-worthy program and 9.27% for the credit-ready program. The interest rate margins for a credit-worthy loan range from 3.20% to 5.70% (APRs range from 8.15% to 11.67%), depending on the credit-worthiness of the borrower and co-signer, if any. The LIBOR Index is equal to the average of the one-month LIBOR rates as published in the “Money Rates” section of the Wall Street Journal on the first business day of each of the three (3) calendar months immediately preceding each quarterly adjustment date. LIBOR means the London Interbank Offered Rate. The interest rate and the APR will increase during the life of the loan if the LIBOR Index increases. RBS Citizens, N.A., Member FDIC and Equal Opportunity Lender is the lender for the Next Student Graduate Loan. The loan terms described are for the 2007-2008 academic year and are subject to change.

The credit-worthy loan repayment example assumes an origination fee of 0.00% of the total loan amount (the requested loan amount plus the origination fee). The origination fees for the credit-worthy loan range from 0.00% to 9.50%, depending on the credit-worthiness of the borrower and co-signer, if any. The origination fee for the credit-ready loan is 5.00% of the total loan amount. The origination fee will be added to and financed with the requested loan amount at disbursement.

Principal at repayment is the principal amount of the loan at disbursement (the requested loan amount plus the origination fee at disbursement) plus interest that accrues during the deferment term (assumed to be 24 months in these examples) plus any origination fee assessed on and added to the outstanding loan amount (including capitalized interest) at repayment. Deferred interest is capitalized (added to principal) once at the time your loan enters repayment.

Repayment of principal and interest begins six months after (i) graduation or (ii) you cease to be enrolled at least half time. The monthly payment amount shown here will increase if the LIBOR Index increases, and will be computed based on the interest rate applicable at the time repayment begins. Monthly payments of principal and interest will be fixed for the first year and then recalculated once each year based on the interest rate applicable at the time of the calculation and reset on the anniversary of your most recent repayment start date so as to pay the loan in full over the remaining repayment period. Minimum monthly payments will be at least $25.

Annual Percentage Rate (APR) is a measure of what a loan will cost. It takes into account the rate, fees, length of the loan, and the timing of all payments. The APR will increase if the LIBOR Index increases.

Finance charge is the dollar amount the credit will cost and includes interest paid over the life of the loan, plus the origination fee, if any.