Fynanz will be the servicer for all loans originated in our marketplace. Fynanz is responsible for all servicing, collections, reporting and documentation and we will take all necessary steps to maximize the timely recovery of interest and principal on the loans. We may outsource certain functions to third parties, provided the servicing is completed in accordance with standards determined by Fynanz.

All communications from borrowers and lenders must be made to Fynanz. Under no circumstances will lenders be allowed to contact borrowers to perform any type of collection activities.

Borrowers will make monthly loan payments through electronic transfers directly from a designated bank account to Fynanz.

• Borrowers are encouraged to make payments by automated withdrawals from their designated bank account, or by bank drafts drawn on the account, into a separate account maintained by Fynanz.
• Borrowers will be responsible for paying any fees resulting from failed automated loan payments due to insufficient funds in their accounts, returned check fees, penalties, or similar servicing costs.
• Fynanz will maintain records of all borrower payments and all disbursements to the lender’s Fynanz account.

Fynanz is responsible for administering all monthly reporting and loan documentation. We will provide monthly statements in electronic format reflecting payments received on the loans, itemizing any fees or charges incurred, including the Fynanz servicing fee. Fynanz will make every reasonable effort to collect delinquent payments from borrowers. A borrower is determined to be delinquent once any payment is 30 days past due.

• The servicing efforts for delinquent loans will be outsourced to a third party collection agency.
• Fynanz wants to bring borrowers to current status as soon as possible, so all collection fees will be paid by Fynanz from the Guarantee Fund.
• Once a payment is 120 days delinquent, the loan is considered to be in default
• Fynanz will report delinquent loan payments to the credit reporting agencies

Fynanz will take the following courses of action if a monthly payment is not received by its respective due date:

1. 10 & 20 days delinquent
2. • Contact the borrower regarding payment obligation.
   • Make a second attempt to execute an automated withdrawal from the borrower’s bank account.
   • Contact the cosigner to request payment
3. 30 days delinquent
• Fynanz will assign the loan to a third party collection agency who will attempt to collect the delinquent amount in order to bring the account current as soon as possible.
4. 120 days delinquent
5. • Once a loan becomes 120 days past due it will be charged-off and offered for sale to third party buyers authorized to purchase student loans.
   • Fynanz does not guarantee the successful sale of a charged-off receivable, or that a lender will receive any net proceeds from such sale.