Edamerica provides you with low-cost student loan options.

We offer big savings on FFELP (Federal Family Education Loan Program) loans. Our vision is to create access to higher education so students can realize their dreams in life.

* Auto-debit repayment benefits are effective for loans first disbursed on or after May 15, 2008.

Parent PLUS Loans

Quick and easy online application with instant credit decision
0% to 1% default fee - based on guarantor
0.25% interest rate reduction for auto-debit with continuous on-time payments
8.5% fixed interest rate
3.0% origination fee deducted from the loan proceeds upon disbursement

Approximately 5.0% of Edamerica borrowers are currently enrolled in the auto-debit payment plan and receive a 0.25% reduction on their interest rate. All of Edamerica's new Federal Stafford, Parent PLUS, and GradPLUS borrowers with accounts in good standing are eligible for the auto-debit payment plan and interest rate reduction.

Repayment and Interest Rate Details

Federal Parent PLUS Loans first disbursed on or after July 1, 2008, have a fixed interest rate of 8.5%. All Parent PLUS Loans will have a 3% mandatory origination fee deducted from the loan proceeds upon disbursement.

There is no penalty for early repayment or prepayment. Various deferment and forbearance options, including full deferral of payments while your child is in school at least half-time, are available; see Other Helpful Information below, or visit www.edamerica.net for more information.

Federal Parent PLUS Loans have a standard 10 year repayment term, but there are other repayment plans available that can increase the term..

Standard Repayment allows you to make equal monthly payments during the entire term of the loan and results in the least amount of interest cost to the borrower.

Graduated Repayment lowers the monthly payment amount in the beginning of the repayment term, and payments increase every two years as you are better able to manage your payments.

Extended Repayment is available for new borrowers with their first loan disbursement on or after October 7, 1998, who accumulate student loan debt greater than $30,000. The repayment term for these loans may be extended up to 25 years. By extending your repayment term, you will pay more interest over the life of the loan.

Another option, Income Sensitive Repayment, lowers your monthly payment amount by basing your payments on a percentage of your income (from 4% to 25%), allowing you to extend your repayment period up to fifteen years. Individual repayment schedules will vary based on the borrower's income and loan balance.

Some borrowers will be eligible for loan forgiveness based on their chosen profession. Teachers working in certain areas or teaching certain subjects may be eligible for loan forgiveness. Check with your student loan provider for more details.

Parent PLUS Loans For Loans Disbursed on or after July 1, 2008
Term	Loan Amount	Interest Rate	Estimated Monthly Payment	Estimated Interest Paid over Life of Loan	Estimated Total Amount Paid (Principal and Interest)
10 year term	$ 5,000	8.5% - Fixed	$ 61.99	$ 2,439.14	$ 7,439.14
	$ 10,000	8.5% - Fixed	$ 123.99	$ 4,878.28	$ 14,878.28
	$ 20,000	8.5% - Fixed	$ 247.97	$ 9,756.57	$ 29,756.57
15 year term	$ 5,000	8.5% - Fixed	$ 50.00	$ 3,862.66	$ 8,862.66
	$ 10,000	8.5% - Fixed	$ 98.47	$ 7,725.31	$ 17,725.31
	$ 20,000	8.5% - Fixed	$ 196.95	$ 15,450.62	$ 35,450.62

The average Parent PLUS Loan borrowed for the 2006-2007 school year (July 1, 2006 through June 30, 2007) by [school name] borrowers was $ 0.00.

The average Parent PLUS Loan borrowed for the 2007-2008 school year (July 1, 2007 through June 30, 2008) by [school name] borrowers was $ 0.00.

With Edamerica, you can...

enjoy exceptional customer service for federal student loans via Edfinancial Services
review account status and make payments online
call 1-800-337-1009 for a 24-hour voice response system
use our Edlive service to chat online with a friendly, helpful representative

Toll-free # 1-800-337-1009, Lender # 831453

Edamerica does not sell its loans in the open market or to any other lenders. Edamerica partners with Edsouth, its business partner and nonprofit secondary market, and Edfinancial Services, its designated servicer. Edamerica typically sells loans to Edsouth within 60 days of final disbursement. All loans are serviced by Edfinancial Services for the life-of-the-loan and never sold to any other party or transferred. Because all loans are serviced by Edfinancial Services from origination through final payment, the process is seamless to the student, without any effect to the back-end benefits offered. The student will be notified by letter of the change in ownership of their loan from Edamerica to Edsouth; however, the point of contact will not change.

Due to recent legislation and an unprecedented liquidity crisis, many lenders, including Edamerica, have been forced to change their business models. In order to continue to make new loans to students and parents, lenders are relying on the Department of Education and the U.S. Treasury for funding, rather than on the student loan secondary markets that traditionally purchased and held student loans. On May 7, 2008, the Ensuring Continued Access to Student Loans Act (ECASLA) was signed into law, thus creating the PUT Program. This legislation authorizes the U.S. Department of Education to purchase federal student loans from lenders to ensure on-going liquidity and availability of funds for student loans. The purpose of the program is to provide lenders with the means to continue offering student loans to students. Edamerica has signed up to participate in the PUT Program under ECASLA, which means selling loans to the U.S. Department of Education. We consider the PUT Program a viable alternative to our regular business model. If the economy does not take a turn for the better in the near future, and the financial markets do not return to normal operations, we will continue to take advantage of the PUT Program offered under ECASLA. Borrowers will be notified by letter of any change in ownership of their loan from Edamerica to the Department of Education.

At this time the Department of Education has its own service provider to service loans that they purchase through the PUT Program. One of the most anticipated decisions right now is the selection of other loan servicers to take part in the servicing of the loans sold to the U.S. Department of Education under the PUT Program. At this time a final decision has not been made. We hope to be able to service those loans. Borrowers would substantially benefit from this decision because they would be able to retain Edfinancial Services as the single point of contact for their loans.

Other Helpful Information

Edamerica is not affiliated with any other lender.

The default fee for Parent PLUS Loans is 1.0%. All, or a portion, of the default fee may be paid by the guarantor, but if it is not paid by the guarantor, the borrower will be responsible and all, or a portion, of the fee will be deducted from the loan proceeds upon disbursement. For example, a Federal Parent PLUS Loan for $ 5,000 will have a default fee of $ 50.

Late Payments and Default
Payments received more than 15 days past the due date are subject to a late fee of 6% of the minimum amount due. We report loan status at the end of each month to each of the nationwide consumer reporting agencies. Accounts that are 270 days past due are considered in default.

Consequences of Default:

Your loans may be turned over to a collection agency and you will be liable for the costs associated with collecting your loan, including court costs and attorney fees.
You can be sued for the entire amount of your loan.
Your wages may be garnished. (Federal law limits the amount that may be garnished to 15% of the borrower's take-home pay.)
Your federal and state income tax refunds may be intercepted.
The federal government may withhold part of your Social Security benefit payments.
Your defaulted loans will appear on your credit record.
You will not receive any more federal financial aid until you repay the loan in full or make arrangements to repay what you already owe.

Additional Information on Default
Student loans are generally not dischargeable through bankruptcy. It is fairly difficult to satisfy the requirements for an undue hardship petition, which generally requires demonstrating that you made a good faith effort to repay the debt, that you will not be able to maintain a minimal standard of living and still repay the debt, and that the conditions that prevent you from repaying the debt will likely persist for most of the full term of the loan. Even if you satisfy the requirements of an undue hardship discharge, often this will result in just a partial discharge of the debt.

Deferment and Forbearance
A number of programs are available to borrowers who may have difficulty making loan payments.

A deferment allows you to temporarily delay repayment of your student loans for a specified period of time. There are many different situations that would make a student eligible to defer their payments. The most frequently used deferments are because of unemployment, enrollment in school, or economic hardship.

A forbearance is an option available to students who are not eligible for a deferment. If you are financially unable to make your student loan payments, you may be eligible for this temporary suspension or reduction of payments. A forbearance may be granted if federal student loan debt exceeds 20% of the borrower's gross income. Forbearance will not eliminate any prior derogatory credit history.

The big difference between deferments and forbearances is that the federal government will pay the interest that accrues on your subsidized loans while those loans are on deferment. The borrower is responsible for the interest that accrues on unsubsidized loans on deferment and for the interest that accrues on both subsidized and unsubsidized loans on forbearance. If the interest is not paid, it will be capitalized (added to the principal balance) at the end of the deferment or forbearance period.

Repayment Benefits
All repayment benefits are terminated if loans are consolidated. Student loan consolidation is the combining of one or more student loans into one new loan. There is no penalty for early repayment. All benefits associated with the original loan(s) do not apply to the consolidation loan.

All repayment benefits are terminated upon loan delinquency or default. Interest rate reductions are only effective during periods of active repayment. We reserve the right to discontinue or modify benefit programs at any time without notice. Any termination or modification will not affect the terms of loans previously made. Specific terms and conditions apply; call 800.337.1009 for more information.

Federal PLUS Loan - Annual and Cumulative Limits

Annual Loan Limits Cost of education less any other financial aid awarded

Cumulative Loan Limits No limit; eligible borrowers can borrow up to the cost of education.

Preferred Lender Lists
As a student or parent of a student, you may have reached this web page from a school-provided preferred lender list. You are not required to select a lender from a preferred lender list, and your school will certify a loan from any lender you choose.

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