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T.H.E. Repayment Bonus Benefit Plan

Northstar Education Finance’s Total Higher Education Repayment Bonus Program

Northstar Education Finance, Inc. (“NEF”) provides individuals, who obtained or co-signed a student loan under NEF’s Total Higher Education (“THE”) Loan Program, a THE Repayment Bonus (the “Bonus”) if a) the loan is in repayment and b) the student loan account is 59 days or less delinquent. If a student loan account becomes 60 or more days delinquent and he or she is therefore not entitled to receive a Bonus, the individual will once again be entitled to start receiving a Bonus when his or her loan becomes 59 days or less delinquent. The specific credit applied to the student loan account is based on the type of loan, school and loan origination date. See Below for specific details as to how NEF’s Bonus is calculated.

The funding source for paying the Bonus is excess cash released from NEF’s trusts established pursuant to terms and conditions as set forth under specific indenture agreements associated with NEF’s financings. The cash flows of the trusts are the only means through which NEF is obligated to pay the Bonuses.

Recent conditions have resulted in an increase in excess cash available to pay the Bonus. However, as the cash flows from NEF’s trusts are dependent on economic and legislative conditions and contingencies, NEF cannot guarantee any specific level of funding for its THE Bonus payments in the future.

For questions and/or additional information, please contact information below:

Taige P. Thornton

President and CEO
NorthStar Education Services, LLC
Phone: (608) 327-1968
Email: Taige.Thornton@nseds.com

Kate Seifert

VP of Finance
NorthStar Education Services, LLC
Phone: (612) 239-7131
Email: kate.seifert@nseds.com

Northstar Education Finance, Inc. THE Repayment Bonus Calculations


1.3% bonus (in repayment and made at least one payment less than 60 days delinquent all accounts)


1.0% bonus (in repayment and made at least one payment less than 60 days delinquent all accounts)


.25% bonus (less than 60 days delinquent all accounts)


.75% bonus (in repayment and made at least one payment less than 60 days delinquent all accounts)


Exceptions to the calculations:

THE Loan Program: NorthStar Select – THE Bonus not provided for loans under this program

THE Loan Program: THE MN Private -  1.3% (in repayment and made at least one payment less than 60 days delinquent all accounts)

NOTE:  Borrowers who elected the option of a Premier Interest Rate (1% rate reduction) in lieu of the THE Repayment Bonus are not eligible to receive the Bonus

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