Common use of Financed Student Loan Servicing Clause in Contracts

Financed Student Loan Servicing. Servicer covenants and agrees to service each Financed Student Loan in compliance with all requirements of the Act, each Guaranty Agreement and all other laws and regulations applicable to its activities hereunder and in accordance with the terms and conditions of this Agreement, and to perform all services and duties customary to the servicing of Student Loans including all collection practices. Without limiting the foregoing, in fulfillment of its obligations hereunder, Servicer shall do the following. a. Maintain a complete and separately identified record for the Financed Student Loans of each borrower, inclusive of all documentation and correspondence related to the Financed Student Loans. b. Take such actions as are required under the Act with respect to delinquencies. c. Perform the actions necessary to maintain the Guarantee and/or Insurance on each Financed Student Loan originated under the Act at all times. d. Handle all required borrower contact functions and meet all servicing "due diligence" requirements, as that term is used under the Act and implementing regulations. Such functions include, for example, skip tracing, contacting delinquent borrowers, handling borrower requests for extensions or deferments, and preparing and processing claims, including death, disability, default, closed school, false certification and bankruptcy claims. e. Prepare and maintain accounting records with respect to the Financed Student Loans; process refunds and other adjustments; process address changes and maintain address records. f. Collect all payments with respect to Financed Student Loans and deliver all such payments to the Indenture Trustee, including without limitation guarantee payments, with respect to the Financed Student Loans. Servicer shall remit collected funds by automated clearing house within three (3) business days of receipt to the Indenture Trustee. Servicer shall prepare a "Lender's Request for Payment of Interest and Special Allowance" to be used in billing the Department for interest and the special allowance for all eligible loans on a quarterly basis. Servicer agrees to submit the billing to the Department within 30 days following the last day of each quarter (March 31, June 30, September 30, December 31). In the event that Servicer does not submit the billing to the Department within 30 calendar days following the last day of each quarter, and such failure is not attributable to action or inaction by the Issuer or the Department, the Issuer shall be entitled to payment by Servicer of penalty interest. Such penalty interest shall be calculated on the actual amount of interest subsidies and special allowance payments that the Issuer is entitled to receive from the Department on the Student Loans covered by the billing report and for the time period between such 30th day through the date that said billing report is filed with the Department by Servicer using the LIBOR rate, as quoted in the Wall Street Journal, for the period closest in term to the actual number of days covered by penalty period. g. Retain summary records of contacts, follow-ups and collections efforts, and records of written correspondence relating to the Financed Student Loans of each borrower sufficient to ensure claim payment. h. Process adjustments including NSF checks, status changes, forbearances, deferments and Financed Student Loans paid in full. i. Complete all forms and reports required by the U.S. Department of Education or any Guaranty Agency. j. Perform all of the Eligible Lender Trustee's and Issuer's obligations as holder of Student Loans as required by the Act and all regulations issued by the U.S. Department of Education or by the guarantor to implement the Act. Servicer shall have full power to sign and act on the Issuer's and the Eligible Lender Trustee's behalf as the Issuer's agent in all transactions with borrowers serviced hereunder. Each of Issuer and the Eligible Lender Trustee do hereby authorize, constitute, and appoint Servicer on its behalf and as its attorney in fact, to endorse those promissory notes for which a claim has been filed with a guarantor. Servicer will carry out its responsibilities hereunder in a diligent and lawful manner. k. At all times identify the Issuer and the Eligible Lender Trustee as the owners of the Financed Student Loans and identify the Indenture Trustee as a party which maintains a security interest in the Financed Student Loans. l. Capture and retain a copy of each promissory note and each disclosure statement on its image system and shall store a backup image copy in a remote facility. Servicer shall hold the original Student Loan documents, including the original promissory note, a copy of the Student Loan application and the disclosure statement for safekeeping. m. Provide reports to the Issuer and Indenture Trustee of all monetary transactions as well as periodic summary and account information as required in the "Issuer Service Manual" including such items as: (1) Detailed periodic reports to support all cash transactions processed; (2) Monthly portfolio summary reports and supporting data listings; (3) A monthly listing of delinquent accounts; and (4) A quarterly report of xxxxxxxx to the Department for interest and special allowances. n. Ensure the timely payment of taxes, accounting fees, outside auditor fees, data processing costs and other costs incurred in servicing the Financed Student Loans. o. Obtain and maintain or cause each Subservicer to obtain and maintain in force a fidelity bond in an amount of at least $1,000,000 upon all personnel of the Servicer or Subservicer, as applicable, insuring against any loss or damage which the Issuer, the Servicer or Subservicer, as applicable, might suffer as a consequence of any fraudulent or dishonest act of such personnel. p. Obtain and maintain or cause to be obtained and maintained in force errors and omissions insurance coverage in an amount equal to at least $2,000,000 for all its customers. q. Respond to all borrower inquiries in a prompt, courteous and thorough manner. r. Establish and maintain a method for charging and collecting late payment fees in accordance with provisions of the Act and all other applicable laws and regulations.

Financed Student Loan Servicing. The Master Servicer covenants and agrees to service each Financed Student Loan in compliance with all requirements of the Act, each Guaranty Agreement and all other laws and regulations applicable to its activities hereunder and in accordance with the terms and conditions of this Agreement, and to perform all services and duties customary to the servicing of Student Loans including all collection practices. Without limiting the foregoing, in fulfillment of its obligations hereunder, the Master Servicer shall do the following.: a. (1) Maintain a complete and separately identified record for the Financed Student Loans of each borrower, inclusive of all documentation and correspondence related to the Financed Student Loans. b. (2) Take such actions as are required under the Act with respect to delinquencies. c. (3) Perform the actions necessary to maintain the Guarantee and/or Insurance on each Financed Student Loan originated under the Act at all times. d. (4) Handle all required borrower contact functions and meet all servicing "“due diligence" ” requirements, as that term is used under the Act and implementing regulations. Such functions include, for example, skip tracing, contacting delinquent borrowers, handling borrower requests for extensions or deferments, and preparing and processing claims, including death, disability, default, closed school, false certification and bankruptcy claims. e. (5) Prepare and maintain accounting records with respect to the Financed Student Loans; process refunds and other adjustments; process address changes and maintain address records. f. (6) Collect all payments with respect to Financed Student Loans and deliver all such payments to the Indenture TrusteeTrustee for deposit into the Collection Account, including without limitation guarantee payments, with respect to the Financed Student Loans. Servicer shall remit collected funds by automated clearing house within three (3) business days of receipt to the Indenture Trustee. The Master Servicer shall prepare a "“Lender's ’s Request for Payment of Interest and Special Allowance" ” to be used in billing the Department for interest and the special allowance for all eligible loans on a quarterly basis. The Master Servicer agrees to submit the billing to the Department within 30 days following the last day of each quarter (March 31, June 30, September 30, December 31). In the event that the Master Servicer does not submit the billing to the Department within 30 calendar days following the last day of each quarter, and such failure is not attributable to action or inaction by the Issuer or the Department, the Issuer shall be entitled to payment by the Master Servicer of penalty interest. Such penalty interest shall be calculated on the actual amount of interest subsidies and special allowance payments that the Issuer is entitled to receive from the Department on the Student Loans covered by the billing report and for the time period between such 30th day through the date that said billing report is filed with the Department by the Master Servicer using the LIBOR rate, as quoted in the Wall Street Journal, for the period closest in term to the actual number of days covered by penalty period. g. (7) Retain summary records of contacts, follow-ups and collections efforts, and records of written correspondence relating to the Financed Student Loans of each borrower sufficient to ensure claim payment. h. (8) Process adjustments including NSF checks, status changes, forbearances, deferments and Financed Student Loans paid in full. i. (9) Complete all forms and reports required by the U.S. Department of Education or any Guaranty Agency. j. (10) Perform all of the Trust Eligible Lender Trustee's ’s and Issuer's ’s obligations as holder of Student Loans as required by the Act and all regulations issued by the U.S. Department of Education or by the guarantor to implement the ActRegulations. The Master Servicer shall have full power to sign and act on the Issuer's ’s and the Trust Eligible Lender Trustee's ’s behalf as the Issuer's ’s agent in all transactions with borrowers serviced hereunder. Each of Issuer and the Trust Eligible Lender Trustee do hereby authorize, constitute, and appoint the Master Servicer on its behalf and as its attorney in fact, to endorse those promissory notes for which a claim has been filed with a guarantor. The Master Servicer will carry out its responsibilities hereunder in a diligent and lawful manner. k. (11) At all times identify the Issuer and the Trust Eligible Lender Trustee as the owners of the Financed Student Loans and identify the Indenture Trustee as a party which maintains a security interest in the Financed Student Loans. l. (12) Capture and retain a copy of each promissory note and each disclosure statement on its image system and shall store a backup image copy in a remote facility. The Master Servicer shall hold the original Student Loan documents, including the original promissory note, a copy of the Student Loan application and the disclosure statement for safekeeping. m. (13) Provide reports to the Issuer and Indenture Trustee of all monetary transactions as well as periodic summary and account information as required in the "Issuer Service Manual" information, including such items as: (1i) Detailed periodic reports to support all cash transactions processed; (2ii) Monthly portfolio summary reports and supporting data listings; (3iii) A monthly listing of delinquent accounts; and; (4iv) A quarterly report of xxxxxxxx to the Department for interest and special allowances; and (v) All monthly reports received from Subservicers and any combined monthly reports prepared by the Master Servicer that show reconciliations, loan balances, loan status, special allowance and other monthly statistics. n. (14) Ensure the timely payment of taxes, accounting fees, outside auditor fees, data processing costs and other costs incurred in servicing the Financed Student Loans. o. (15) Obtain and maintain or cause each Subservicer to obtain and maintain in force a fidelity bond in an amount of at least $1,000,000 upon all personnel of the Master Servicer or Subservicer, as applicable, insuring against any loss or damage which the Issuer, the Master Servicer or Subservicer, as applicable, might suffer as a consequence of any fraudulent or dishonest act of such personnel. p. (16) Obtain and maintain or cause to be obtained and maintained in force errors and omissions insurance coverage in an amount equal to at least $2,000,000 for all its customers. q. (17) Respond to all borrower inquiries in a prompt, courteous and thorough manner. r. (18) Establish and maintain a method for charging and collecting late payment fees in accordance with provisions of the Act and all other applicable laws and regulations. (19) Act as custodian and bailee with respect to all original documents and hold them subject to the lien of the Indenture in favor of the Indenture Trustee and pursuant to a bailment in a form satisfactory to the Master Servicer, the Issuer and the Trust Eligible Lender Trustee. (20) If any Financed Student Loan has lost its Guarantee and/or Insurance due to the actions of any prior issuer, servicer or holder of the Financed Student Loan, at the written request of the Issuer, use its best efforts to reinstate such Guarantee or Insurance; provided, however, that the Master Servicer makes no representation that such reinstatement will occur. Such services shall be provided at the cost agreed upon by the Issuer and the Master Servicer. (21) If requested by the Issuer, remit monthly rebate fees to the Department with respect to the Financed Student Loans. Upon receipt of satisfactory documentation, the Issuer shall cause the Indenture to promptly wire transfer to the Master Servicer or its designee, from amounts held under the Indenture, the amount of funds required to pay such fees. The Master Servicer shall provide, or cause to be provided to the Issuer, on a monthly basis, information needed to determine the monthly rebate fees. (22) Accrue and capitalize interest on those Student Loans not eligible for interest subsidy. (23) Verify the current status of all borrowers not less often than annually through direct contact with each borrower to ensure correct account information. The Master Servicer shall also seek to verify the borrower’s status by direct or indirect contact with educational institutions. (24) When a Student Loan becomes due for repayment, prepare a payment schedule and disclosure statement and mail it to the borrower for signature(s). Prior to the first payment due date, repayment coupons will be prepared and sent to the borrowers. (25) Post to the borrower’s account all payments of principal, interest and other charges. (26) Automatically credit the Issuer’s account whenever a borrower overpays an account by less than $5.00, and the Issuer, at its discretion, can reimburse the borrower. When the overpayment is more than $5.00, the Master Servicer shall remit the overpayment directly to the borrower. When a borrower’s balance owing is less than $50.00, the Master Servicer may, at its discretion, write-off the balance. (27) Prepare and submit all papers and documents necessary to strictly follow reimbursement procedures specified in the Common Manual: Unified Student Loan Policy, as amended from time to time, upon default of borrower and further agrees to promptly remit proceeds to Issuer upon receipt from the Guaranty Agency. (28) Provide immediate notice to the Issuer of any proceeding or action filed, asserted or threatened against the Master Servicer that, if decided unfavorably to the Master Servicer, would adversely impact the Master Servicer’s status as an eligible “third-party servicer”. (29) Deliver to the Indenture Trustee each report delivered to the Master Servicer pursuant to the Basic Documents.

Financed Student Loan Servicing. The Master Servicer covenants and agrees to service each Financed Student Loan in compliance with all requirements of the Act, each Guaranty Agreement and all other laws and regulations applicable to its activities hereunder and in accordance with the terms and conditions of this Agreement, and to perform all services and duties customary to the servicing of Student Loans including all collection practices. Without limiting the foregoing, in fulfillment of its obligations hereunder, the Master Servicer shall do the following.: a. (1) Maintain a complete and separately identified record for the Financed Student Loans of each borrower, inclusive of all documentation and correspondence related to the Financed Student Loans. b. (2) Take such actions as are required under the Act with respect to delinquencies. c. (3) Perform the actions necessary to maintain the Guarantee and/or Insurance on each Financed Student Loan originated under the Act at all times. d. (4) Handle all required borrower contact functions and meet all servicing "due diligence" requirements, as that term is used under the Act and implementing regulations. Such functions include, for example, skip tracing, contacting delinquent borrowers, handling borrower requests for extensions or deferments, and preparing and processing claims, including death, disability, default, closed school, false certification and bankruptcy claims. e. (5) Prepare and maintain accounting records with respect to the Financed Student Loans; process refunds and other adjustments; process address changes and maintain address records. f. (6) Collect all payments with respect to Financed Student Loans and deliver all such payments to the Indenture TrusteeTrustee for deposit into the Collection Account, including without limitation guarantee payments, with respect to the Financed Student Loans. Servicer shall remit collected funds by automated clearing house within three (3) business days of receipt to the Indenture Trustee. The Master Servicer shall prepare a "Lender's Request for Payment of Interest and Special Allowance" to be used in billing the Department for interest and the special allowance for all eligible loans on a quarterly basis. The Master Servicer agrees to submit the billing to the Department within 30 days following the last day of each quarter (March 31, June 30, September 30, December 31). In the event that the Master Servicer does not submit the billing to the Department within 30 calendar days following the last day of each quarter, and such failure is not attributable to action or inaction by the Issuer or the Department, the Issuer shall be entitled to payment by the Master Servicer of penalty interest. Such penalty interest shall be calculated on the actual amount of interest subsidies and special allowance payments that the Issuer is entitled to receive from the Department on the Student Loans covered by the billing report and for the time period between such 30th day through the date that said billing report is filed with the Department by the Master Servicer using the LIBOR rate, as quoted in the Wall Street Journal, for the period closest in term to the actual number of days covered by penalty period. g. (7) Retain summary records of contacts, follow-ups and collections efforts, and records of written correspondence relating to the Financed Student Loans of each borrower sufficient to ensure claim payment. h. (8) Process adjustments including NSF checks, status changes, forbearances, deferments and Financed Student Loans paid in full. i. (9) Complete all forms and reports required by the U.S. Department of Education or any Guaranty Agency. j. (10) Perform all of the Trust Eligible Lender Trustee's and Issuer's obligations as holder of Student Loans as required by the Act and all regulations issued by the U.S. Department of Education or by the guarantor to implement the ActRegulations. The Master Servicer shall have full power to sign and act on the Issuer's and the Trust Eligible Lender Trustee's behalf as the Issuer's agent in all transactions with borrowers serviced hereunder. Each of Issuer and the Trust Eligible Lender Trustee do hereby authorize, constitute, and appoint the Master Servicer on its behalf and as its attorney in fact, to endorse those promissory notes for which a claim has been filed with a guarantor. The Master Servicer will carry out its responsibilities hereunder in a diligent and lawful manner. k. (11) At all times identify the Issuer and the Trust Eligible Lender Trustee as the owners of the Financed Student Loans and identify the Indenture Trustee as a party which maintains a security interest in the Financed Student Loans. l. (12) Capture and retain a copy of each promissory note and each disclosure statement on its image system and shall store a backup image copy in a remote facility. The Master Servicer shall hold the original Student Loan documents, including the original promissory note, a copy of the Student Loan application and the disclosure statement for safekeeping. m. (13) Provide reports to the Issuer and Indenture Trustee of all monetary transactions as well as periodic summary and account information as required in the "Issuer Service Manual" information, including such items as: (1i) Detailed periodic reports to support all cash transactions processed; (2ii) Monthly portfolio summary reports and supporting data listings; (3iii) A monthly listing of delinquent accounts; and (4iv) A quarterly report of xxxxxxxx to the Department for interest and special allowances. n. (14) Ensure the timely payment of taxes, accounting fees, outside auditor fees, data processing costs and other costs incurred in servicing the Financed Student Loans. o. (15) Obtain and maintain or cause each Subservicer to obtain and maintain in force a fidelity bond in an amount of at least $1,000,000 upon all personnel of the Master Servicer or Subservicer, as applicable, insuring against any loss or damage which the Issuer, the Master Servicer or Subservicer, as applicable, might suffer as a consequence of any fraudulent or dishonest act of such personnel. p. (16) Obtain and maintain or cause to be obtained and maintained in force errors and omissions insurance coverage in an amount equal to at least $2,000,000 for all its customers. q. (17) Respond to all borrower inquiries in a prompt, courteous and thorough manner. r. (18) Establish and maintain a method for charging and collecting late payment fees in accordance with provisions of the Act and all other applicable laws and regulations. (19) Act as custodian and bailee with respect to all original documents and hold them subject to the lien of the Indenture in favor of the Indenture Trustee and pursuant to a bailment in a form satisfactory to the Master Servicer, the Issuer and the Trust Eligible Lender Trustee. (20) If any Financed Student Loan has lost its guarantee and/or insurance due to the actions of any prior issuer, servicer or holder of the Financed Student Loan, at the written request of the Issuer, use its best efforts to reinstate such guarantee or insurance; provided, however, that the Master Servicer makes no representation that such reinstatement will occur. Such services shall be provided at the cost agreed upon by the Issuer and the Master Servicer. (21) If requested by the Issuer, remit monthly rebate fees to the Department with respect to the Financed Student Loans. Upon receipt of satisfactory documentation, the Issuer shall cause the Indenture to promptly wire transfer to the Master Servicer or its designee, from amounts held under the Indenture, the amount of funds required to pay such fees. The Master Servicer shall provide, or cause to be provided to the Issuer, on a monthly basis, information needed to determine the monthly rebate fees. (22) Accrue and capitalize interest on those Student Loans not eligible for interest subsidy. (23) Verify the current status of all borrowers not less often than annually through direct contact with each borrower to ensure correct account information. The Master Servicer shall also seek to verify the borrower's status by direct or indirect contact with educational institutions. (24) When a Student Loan becomes due for repayment, prepare a payment schedule and disclosure statement and mail it to the borrower for signature(s). Prior to the first payment due date, repayment coupons will be prepared and sent to the borrowers. (25) Post to the borrower's account all payments of principal, interest and other charges. (26) Automatically credit the Issuer's account whenever a borrower overpays an account by less than $5.00, and the Issuer, at its discretion, can reimburse the borrower. When the overpayment is more than $5.00, the Master Servicer shall remit the overpayment directly to the borrower. When a borrower's balance owing is less than $50.00, the Master Servicer may, at its discretion, write-off the balance. (27) Prepare and submit all papers and documents necessary to strictly follow reimbursement procedures specified in the Common Manual: Unified Student Loan Policy, as amended from time to time, upon default of borrower and further agrees to promptly remit proceeds to Issuer upon receipt from the Guaranty Agency. (28) Provide immediate notice to the Issuer of any proceeding or action filed, asserted or threatened against the Master Servicer that, if decided unfavorably to the Master Servicer, would adversely impact the Master Servicer's status as an eligible "third-party servicer". (29) Deliver to the Indenture Trustee each report delivered to the Master Servicer pursuant to the Basic Documents that the Indenture Trustee requests in order to fulfill its obligations under Section 6.16(c)

Financed Student Loan Servicing. The Master Servicer covenants and agrees to service each Financed Student Loan in compliance with all requirements of the Act, each Guaranty Agreement and all other laws and regulations applicable to its activities hereunder and in accordance with the terms and conditions of this Agreement, and to perform all services and duties customary to the servicing of Student Loans including all collection practices. Without limiting the foregoing, in fulfillment of its obligations hereunder, the Master Servicer shall do the following.: a. (1) Maintain a complete and separately identified record for the Financed Student Loans of each borrower, inclusive of all documentation and correspondence related to the Financed Student Loans. b. (2) Take such actions as are required under the Act with respect to delinquencies. c. (3) Perform the actions necessary to maintain the Guarantee and/or Insurance on each Financed Student Loan originated under the Act at all times. d. (4) Handle all required borrower contact functions and meet all servicing "due diligence" requirements, as that term is used under the Act and implementing regulations. Such functions include, for example, skip tracing, contacting delinquent borrowers, handling borrower requests for extensions or deferments, and preparing and processing claims, including death, disability, default, closed school, false certification and bankruptcy claims. e. (5) Prepare and maintain accounting records with respect to the Financed Student Loans; process refunds and other adjustments; process address changes and maintain address records. f. (6) Collect all payments with respect to Financed Student Loans and deliver all such payments to the Indenture TrusteeTrustee for deposit into the Collection Account, including without limitation guarantee payments, with respect to the Financed Student Loans. Servicer shall remit collected funds by automated clearing house within three (3) business days of receipt to the Indenture Trustee. The Master Servicer shall prepare a "Lender's Request for Payment of Interest and Special Allowance" to be used in billing the Department for interest and the special allowance for all eligible loans on a quarterly basis. The Master Servicer agrees to submit the billing to the Department within 30 days following the last day of each quarter (March 31, June 30, September 30, December 31). In the event that the Master Servicer does not submit the billing to the Department within 30 calendar days following the last day of each quarter, and such failure is not attributable to action or inaction by the Issuer or the Department, the Issuer shall be entitled to payment by the Master Servicer of penalty interest. Such penalty interest shall be calculated on the actual amount of interest subsidies and special allowance payments that the Issuer is entitled to receive from the Department on the Student Loans covered by the billing report and for the time period between such 30th day through the date that said billing report is filed with the Department by the Master Servicer using the LIBOR rate, as quoted in the Wall Street Journal, for the period closest in term to the actual number of days covered by penalty period. g. (7) Retain summary records of contacts, follow-ups and collections efforts, and records of written correspondence relating to the Financed Student Loans of each borrower sufficient to ensure claim payment. h. (8) Process adjustments including NSF checks, status changes, forbearances, deferments and Financed Student Loans paid in full. i. (9) Complete all forms and reports required by the U.S. Department of Education or any Guaranty Agency. j. (10) Perform all of the Trust Eligible Lender Trustee's and Issuer's obligations as holder of Student Loans as required by the Act and all regulations issued by the U.S. Department of Education or by the guarantor to implement the ActRegulations. The Master Servicer shall have full power to sign and act on the Issuer's and the Trust Eligible Lender Trustee's behalf as the Issuer's agent in all transactions with borrowers serviced hereunder. Each of Issuer and the Trust Eligible Lender Trustee do hereby authorize, constitute, and appoint the Master Servicer on its behalf and as its attorney in fact, to endorse those promissory notes for which a claim has been filed with a guarantor. The Master Servicer will carry out its responsibilities hereunder in a diligent and lawful manner. k. (11) At all times identify the Issuer and the Trust Eligible Lender Trustee as the owners of the Financed Student Loans and identify the Indenture Trustee as a party which maintains a security interest in the Financed Student Loans. l. (12) Capture and retain a copy of each promissory note and each disclosure statement on its image system and shall store a backup image copy in a remote facility. The Master Servicer shall hold the original Student Loan documents, including the original promissory note, a copy of the Student Loan application and the disclosure statement for safekeeping. m. (13) Provide reports to the Issuer and Indenture Trustee of all monetary transactions as well as periodic summary and account information as required in the "Issuer Service Manual" information, including such items as: (1i) Detailed periodic reports to support all cash transactions processed; (2ii) Monthly portfolio summary reports and supporting data listings; (3iii) A monthly listing of delinquent accounts; and (4iv) A quarterly report of xxxxxxxx to the Department for interest and special allowances. n. (14) Ensure the timely payment of taxes, accounting fees, outside auditor fees, data processing costs and other costs incurred in servicing the Financed Student Loans. o. (15) Obtain and maintain or cause each Subservicer to obtain and maintain in force a fidelity bond in an amount of at least $1,000,000 upon all personnel of the Master Servicer or Subservicer, as applicable, insuring against any loss or damage which the Issuer, the Master Servicer or Subservicer, as applicable, might suffer as a consequence of any fraudulent or dishonest act of such personnel. p. (16) Obtain and maintain or cause to be obtained and maintained in force errors and omissions insurance coverage in an amount equal to at least $2,000,000 for all its customers. q. (17) Respond to all borrower inquiries in a prompt, courteous and thorough manner. r. (18) Establish and maintain a method for charging and collecting late payment fees in accordance with provisions of the Act and all other applicable laws and regulations. (19) Act as custodian and bailee with respect to all original documents and hold them subject to the lien of the Indenture in favor of the Indenture Trustee and pursuant to a bailment in a form satisfactory to the Master Servicer, the Issuer and the Trust Eligible Lender Trustee. (20) If any Financed Student Loan has lost its Guarantee and/or Insurance due to the actions of any prior issuer, servicer or holder of the Financed Student Loan, at the written request of the Issuer, use its best efforts to reinstate such Guarantee or Insurance; provided, however, that the Master Servicer makes no representation that such reinstatement will occur. Such services shall be provided at the cost agreed upon by the Issuer and the Master Servicer. (21) If requested by the Issuer, remit monthly rebate fees to the Department with respect to the Financed Student Loans. Upon receipt of satisfactory documentation, the Issuer shall cause the Indenture to promptly wire transfer to the Master Servicer or its designee, from amounts held under the Indenture, the amount of funds required to pay such fees. The Master Servicer shall provide, or cause to be provided to the Issuer, on a monthly basis, information needed to determine the monthly rebate fees. (22) Accrue and capitalize interest on those Student Loans not eligible for interest subsidy. (23) Verify the current status of all borrowers not less often than annually through direct contact with each borrower to ensure correct account information. The Master Servicer shall also seek to verify the borrower's status by direct or indirect contact with educational institutions. (24) When a Student Loan becomes due for repayment, prepare a payment schedule and disclosure statement and mail it to the borrower for signature(s). Prior to the first payment due date, repayment coupons will be prepared and sent to the borrowers. (25) Post to the borrower's account all payments of principal, interest and other charges. (26) Automatically credit the Issuer's account whenever a borrower overpays an account by less than $5.00, and the Issuer, at its discretion, can reimburse the borrower. When the overpayment is more than $5.00, the Master Servicer shall remit the overpayment directly to the borrower. When a borrower's balance owing is less than $50.00, the Master Servicer may, at its discretion, write-off the balance. (27) Prepare and submit all papers and documents necessary to strictly follow reimbursement procedures specified in the Common Manual: Unified Student Loan Policy, as amended from time to time, upon default of borrower and further agrees to promptly remit proceeds to Issuer upon receipt from the Guaranty Agency. (28) Provide immediate notice to the Issuer and the Indenture Trustee of any proceeding or action filed, asserted or threatened against the Master Servicer that, if decided unfavorably to the Master Servicer, would adversely impact the Master Servicer's status as an eligible "third-party servicer".

Financed Student Loan Servicing. The Master Servicer covenants and agrees to service each Financed Student Loan in compliance with all requirements of the Act, each Guaranty Agreement and all other laws and regulations applicable to its activities hereunder and in accordance with the terms and conditions of this Agreement, and to perform all services and duties customary to the servicing of Student Loans including all collection practices. Without limiting the foregoing, in fulfillment of its obligations hereunder, the Master Servicer shall do the following.: a. (1) Maintain a complete and separately identified record for the Financed Student Loans of each borrower, inclusive of all documentation and correspondence related to the Financed Student Loans. b. (2) Take such actions as are required under the Act with respect to delinquencies. c. (3) Perform the actions necessary to maintain the Guarantee and/or Insurance on each Financed Student Loan originated under the Act at all times. d. (4) Handle all required borrower contact functions and meet all servicing "“due diligence" ” requirements, as that term is used under the Act Act, and implementing regulations. Such functions include, for example, skip tracing, contacting delinquent borrowers, handling borrower requests for extensions or deferments, and preparing and processing claims, including death, disability, default, closed school, false certification and bankruptcy claims. e. (5) Prepare and maintain accounting records with respect to the Financed Student Loans; process refunds and other adjustments; process address changes and maintain address records. f. (6) Collect all payments with respect to Financed Student Loans and deliver all such payments to the Indenture TrusteeTrustee for deposit into the Collection Account, including without limitation guarantee payments, with respect to the Financed Student Loans. Servicer shall remit collected funds by automated clearing house within three (3) business days of receipt to the Indenture Trustee. The Master Servicer shall prepare a "“Lender's ’s Request for Payment of Interest and Special Allowance" ” to be used in billing the Department for interest and the special allowance for all eligible loans on a quarterly basis. The Master Servicer agrees to submit the billing to the Department within 30 days following the last day of each quarter (March 31, June 30, September 30, December 31). In the event that the Master Servicer does not submit the billing to the Department within 30 calendar days following the last day of each quarter, and such failure is not attributable to action or inaction by the Issuer or the Department, the Issuer shall be entitled to payment by the Master Servicer of penalty interest. Such penalty interest shall be calculated on the actual amount of interest subsidies and special allowance payments that the Issuer is entitled to receive from the Department on the Student Loans covered by the billing report and for the time period between such 30th day through the date that said billing report is filed with the Department by the Master Servicer using the LIBOR rate, as quoted in the Wall Street Journal, for the period closest in term to the actual number of days covered by penalty period. g. (7) Retain summary records of contacts, follow-ups and collections efforts, and records of written correspondence relating to the Financed Student Loans of each borrower sufficient to ensure claim payment. h. (8) Process adjustments including NSF checks, status changes, forbearances, deferments and Financed Student Loans paid in full. i. (9) Complete all forms and reports required by the U.S. Department of Education or any Guaranty Agency. j. (10) Perform all of the Trust Eligible Lender Trustee's ’s and Issuer's ’s obligations as holder of Student Loans as required by the Act and all regulations issued by the U.S. Department of Education or by the guarantor to implement the ActRegulations. The Master Servicer shall have full power to sign and act on the Issuer's ’s and the Trust Eligible Lender Trustee's ’s behalf as the Issuer's ’s agent in all transactions with borrowers serviced hereunder. Each of Issuer and the Trust Eligible Lender Trustee do hereby authorize, constitute, and appoint the Master Servicer on its behalf and as its attorney in fact, to endorse those promissory notes for which a claim has been filed with a guarantor. The Master Servicer will carry out its responsibilities hereunder in a diligent and lawful manner. k. (11) At all times identify the Issuer and the Trust Eligible Lender Trustee as the owners of the Financed Student Loans and identify the Indenture Trustee as a party which maintains a security interest in the Financed Student Loans. l. (12) Capture and retain a copy of each promissory note and each disclosure statement on its image system and shall store a backup image copy in a remote facility. The Master Servicer shall hold the original Student Loan documents, including the original promissory note, a copy of the Student Loan application and the disclosure statement for safekeeping. m. (13) Provide reports to the Issuer and Indenture Trustee of all monetary transactions as well as periodic summary and account information as required in the "Issuer Service Manual" information, including such items as: (1i) Detailed periodic reports to support all cash transactions processed; (2ii) Monthly portfolio summary reports and supporting data listings; (3iii) A monthly listing of delinquent accounts; and; (4iv) A quarterly report of xxxxxxxx to the Department for interest and special allowances; and (v) All monthly reports received from Subservicers and any combined monthly reports prepared by the Master Servicer that show reconciliations, loan balances, loan status, special allowance and other monthly statistics. n. (14) Ensure the timely payment of taxes, accounting fees, outside auditor fees, data processing costs and other costs incurred in servicing the Financed Student Loans. o. (15) Obtain and maintain or cause each Subservicer to obtain and maintain in force a fidelity bond in an amount of at least $1,000,000 upon all personnel of the Master Servicer or Subservicer, as applicable, insuring against any loss or damage which the Issuer, the Master Servicer or Subservicer, as applicable, might suffer as a consequence of any fraudulent or dishonest act of such personnel. p. (16) Obtain and maintain or cause to be obtained and maintained in force errors and omissions insurance coverage in an amount equal to at least $2,000,000 for all its customers. q. (17) Respond to all borrower inquiries in a prompt, courteous and thorough manner. r. (18) Establish and maintain a method for charging and collecting late payment fees in accordance with provisions of the Act and all other applicable laws and regulations. (19) Cause each Subservicer to act as custodian and bailee with respect to all original documents and hold them subject to the lien of the Indenture in favor of the Indenture Trustee and pursuant to a bailment in a form satisfactory to the Master Servicer, the Issuer and the Trust Eligible Lender Trustee. (20) If any Financed Student Loan has lost its Guarantee and/or Insurance due to the actions of any prior issuer, servicer or holder of the Financed Student Loan, at the written request of the Issuer, use its best efforts to reinstate such Guarantee or Insurance; provided, however, that the Master Servicer makes no representation that such reinstatement will occur. Such services shall be provided at the cost agreed upon by the Issuer and the Master Servicer. (21) If requested by the Issuer, remit monthly rebate fees to the Department with respect to the Financed Student Loans. Upon receipt of satisfactory documentation, the Issuer shall cause the Indenture Trustee to promptly wire transfer to the Master Servicer or its designee, from amounts held under the Indenture, the amount of funds required to pay such fees. The Master Servicer shall provide, or cause to be provided to the Issuer, on a monthly basis, information needed to determine the monthly rebate fees. (22) Accrue and capitalize interest on those Student Loans not eligible for interest subsidy. (23) Verify the current status of all borrowers not less often than annually through direct contact with each borrower to ensure correct account information. The Master Servicer shall also seek to verify the borrower’s status by direct or indirect contact with educational institutions. (24) When a Student Loan becomes due for repayment, prepare a payment schedule and disclosure statement and mail it to the borrower for signature(s). Prior to the first payment due date, repayment coupons will be prepared and sent to the borrowers. (25) Post to the borrower’s account all payments of principal, interest and other charges. (26) Automatically credit the Issuer’s account whenever a borrower overpays an account by less than $5.00, and the Issuer, at its discretion, can reimburse the borrower. When the overpayment is more than $5.00, the Master Servicer shall remit the overpayment directly to the borrower. When a borrower’s balance owing is less than $50.00, the Master Servicer may, at its discretion, write-off the balance. (27) Prepare and submit all papers and documents necessary to strictly follow reimbursement procedures specified in the Common Manual: Unified Student Loan Policy, as amended from time to time, upon default of borrower and further agrees to promptly remit proceeds to Issuer upon receipt from the Guaranty Agency. (28) Provide immediate notice to the Issuer of any proceeding or action filed, asserted or threatened against the Master Servicer that, if decided unfavorably to the Master Servicer, would adversely impact the Master Servicer’s status as an eligible “third-party servicer”. (29) Deliver to the Indenture Trustee each report delivered to the Master Servicer pursuant to the Basic Documents.