When underwriting each loan, Fynanz assigns its proprietary FACS Grade to each borrower loan request. As mentioned in the previous section, when calculating the FACS, Fynanz takes into account the credit score of the borrower (or cosigner, if applicable) as well as the academic characteristics of the borrower.

We expect the default experience for our private loan program to be in line with other private student loan programs. The table below outlines the expected cumulative default projections for each credit or FACS Grade.

Cumulative defaults are computed over the life of the loans and should not to be confused with annual default rates. We highly recommend reading the Understanding Defaults section to better understand the table below.

FACS Grade	Expected Cumulative Default Rate	Fynanz Principal Guarantee	Net Cumulative Default Rate (after Fynanz guarantee)
Platinum Honors	3.00%	100%	0.00%
Platinum Plus	5.00%	90%	0.50%
Gold Honors	7.00%	80%	1.40%
Gold Plus	9.00%	70%	2.70%
Silver Honors	12.00%	60%	4.80%
Silver Plus	15.00%	50%	7.50%

DISCLAIMER:
THE FYNANZ PRIVATE STUDENT LOAN PROGRAM IS A NEW PROGRAM WITH NO HISTORICAL PERFORMANCE DATA. THE DEFAULT PERFORMANCE EXPERIENCED BY OTHER PRIVATE/FEDERAL STUDENT LENDERS MAY NOT NECESSARILY BE AN ACCURATE PREDICTOR OF FUTURE DEFAULTS TO BE EXPERIENCED IN THE FYNANZ PRIVATE STUDENT LOAN PROGRAM.