3/29/2006

Knoxville, TN: As previously announced at the TSAC board meeting on March 23rd, Edamerica is pleased to introduce Truly Zero Fee Stafford loans for TSAC guaranteed borrowers in Tennessee and outside the state. This means Edamerica pays the 1% federal default fee charged by TSAC effective July 1, 2006, in addition to the origination fees already paid on behalf of borrowers – hence the truly zero fee Stafford from Edamerica.

“We commend TSAC for their prudent funds management,” says Tony Hollin, chairman & CEO, “and, at the same time, we want to alleviate any ensuing financial hardship for our borrowers by absorbing the costs. That’s part of our mission. It’s what we do.”

In the past TSAC waived the student fee but can no longer do so without adversely affecting the Federal Reserve Fund used to pay borrower claims when loans default. In support of TSAC’s commitment to debt management and default prevention and in commitment to student borrowers and their families, Edamerica will underwrite the default fee as well as the federally mandated Stafford origination fees.

"The funding of the federal default fee is another great example of Edamerica's commitment to higher education and the students of Tennessee by helping to make their college dreams a reality," says Jeff Gerkin, assistant dean and director, Office of Financial Aid & Scholarships at the University of Tennessee.

Truly Zero Fee Stafford loans also feature a 4% SmartPay Rebate with 33 consecutive on-time automated payments, exclusively from Edamerica. Edamerica will pay the default fee for TSAC guaranteed PLUS and GradPLUS loans as well – this savings is in addition to Edamerica’s 1% upfront discount. This low fixed rate for parents and graduate & professional PLUS borrowers is in effect while the student is in school, as well as during repayment. Edamerica also offers an additional .25% rate reduction for PLUS and GradPLUS borrowers who choose to make payments via auto-debit.

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Edamerica is the 10th largest provider of education loans in the United States.  Edamerica has helped over a million students and families realize their dreams of higher education by offering low-cost postsecondary student loan and benefit programs nationwide. Edamerica is an Edfinancial Services lender.