NorthStar Education Finance, Inc. (“NEF”) T.H.E. Private Loans originated after April 1, 2002 have variable interest rates which are reset quarterly on the first day of each January, April, July and October. The interest rates are based on an average of the rates for 3-month Eurodollar deposits (“LIBOR”) on the first business day of each of the three calendar months preceding the interest rate change date, as published in the Federal reserve Statistical release H.15 (“Current Interest Rate Index”). As disclosed in NEF’s private loan promissory notes, if the Current Interest Rate Index is no longer available, NEF will substitute an index which, in its sole opinion, is comparable.
As of October 8, 2016, the Current Interest Rate Index ceased publishing LIBOR. As a result, NEF began substituting the Current Interest Rate Index with the 3-month US Dollar interest rate published at Global-Rates.com, which in its sole opinion, is comparable to the Current Interest Rate Index. As such, beginning with the next reset in January 2017, interest rates on the respective T.H.E. Private Loans began reflecting the 3-month US Dollar interest rates provided by Global-Rates.com.
Acting on behalf of NorthStar Education Finance, Inc. pursuant to sub-MSA agreement dated
August 28, 2017
Phone: (612) 239-7131