Common use of Origination of Student Loans Clause in Contracts

Origination of Student Loans. ELSC agrees with the Master Servicer to provide the following services and to coordinate processing as required to enable the guarantee of the Financed Student Loans by a guaranty agency that is authorized to act as a guarantor of Federal Family Education Loan Program (“FFELP”) Loans under the Act (each a “Guarantor”): (1) ELSC agrees to coordinate with the Guarantor the processing of all properly completed Student Loan applications within one business day after receipt of all required information from the borrower, the school, and, for PLUS loans, the credit bureau. This standard shall be met if 90% of all Student Loans are processed within this one-day period. Student Loan application forms shall identify the Lender and shall be sent to a separate post office box, as provided on the Student Loan application form. Lender has sole authority to determine the schools from which it will accept borrower applications. (2) If either the Student Loan application form or the promissory note are not properly completed, ELSC shall promptly notify the school or the borrower, whomever is appropriate, to resolve the deficiencies. (3) ELSC will perform a credit check to determine whether or not PLUS borrowers have adverse credit as required by the Act. If there is no indication of adverse credit, ELSC will document this finding and will submit the loan information to the Guarantor for guarantee processing. If adverse credit is indicated under a strict interpretation of the federal regulations, ELSC will mail a Master Servicer approved denial notice to the borrower. (4) If the Student Loan application form and note are properly completed: (i) ELSC will coordinate the Guarantor’s processing of the Financed Student Loan for guarantee. (ii) Upon guarantee of the Financed Student Loan, ELSC, as the Lender’s agent, shall prepare a disclosure statement in accordance with federal regulations and shall make the required disbursements of the Financed Student Loan. These disbursement checks shall be drawn against a checking account maintained by ELSC. The Master Servicer shall cause this account to be funded on a daily basis by an ACH transfer initiated by ELSC to cover all disbursements made that day. ELSC will pay all transaction costs associated with the account including the cost of standard checks and will receive all investment earnings on balances existing from time to time in the account. ELSC will reconcile the account and will confirm that all disbursements are included in the regular periodic reports provided to the Master Servicer. ELSC will also manage the payment of guaranty fees on behalf of the Master Servicer. (iii) With respect to Financed Student Loans other than Consolidation Loans, depending on the school’s preferred method of delivery, ELSC shall either wire funds or mail a check to the school to be applied to the student’s account. With respect to Consolidation Loans, ELSC shall mail a check to the prior lender. One copy of the disclosure statement will be provided to the borrower. For schools with whom the Master Servicer has authorized ELSC to process Electronic Funds Transfers, ELSC agrees to perform those lender duties and responsibilities specified in the Common Manual: Unified Student Loan Policy, as amended from time to time (the “Guarantor’s Common Manual”). (iv) ELSC shall provide and/or coordinate the mailing of appropriate reports regarding Financed Student Loans to the Master Servicer, including guarantee activity reports, check registers, and disbursement reports.

Origination of Student Loans. ELSC agrees with the Master Servicer to provide the following services and to coordinate processing as required to enable the guarantee of the Financed Student Loans by a guaranty agency that is authorized to act as a guarantor of Federal Family Education Loan Program (“FFELP”) Loans under the Act (each a “Guarantor”): (1) ELSC agrees to coordinate with the Guarantor the processing of all properly completed Student Loan applications within one business day after receipt of all required information from the borrower, the school, and, for PLUS loans, the credit bureau. This standard shall be met if 90% of all Student Loans are processed within this one-day period. Student Loan application forms shall identify the Lender and shall be sent to a separate post office box, as provided on the Student Loan application form. Lender has sole authority to determine the schools from which it will accept borrower applications. (2) If either the Student Loan application form or the promissory note are not properly completed, ELSC shall promptly notify the school or the borrower, whomever is appropriate, to resolve the deficiencies. (3) ELSC will perform a credit check to determine whether or not PLUS borrowers have adverse credit as required by the Act. If there is no indication of adverse credit, ELSC will document this finding and will submit the loan information to the Guarantor for guarantee processing. If adverse credit is indicated under a strict interpretation of the federal regulations, ELSC will mail a Master Servicer approved denial notice to the borrower. (4) If the Student Loan application form and note are properly completed: (i) ELSC will coordinate the Guarantor’s processing of the Financed Student Loan for guarantee. (ii) Upon guarantee of the Financed Student Loan, ELSC, as the Lender’s agent, shall prepare a disclosure statement in accordance with federal regulations and shall make the required disbursements of the Financed Student Loan. These disbursement checks shall be drawn against a checking account maintained by ELSC. The Master Servicer shall cause this account to be funded on a daily basis by an ACH transfer initiated by ELSC to cover all disbursements made that day. ELSC will pay all transaction costs associated with the account including the cost of standard checks and will receive all investment earnings on balances existing from time to time in the account. ELSC will reconcile the account and will confirm that all disbursements are included in the regular periodic reports provided to the Master Servicer. ELSC will also manage the payment of guaranty fees on behalf of the Master Servicer. (iii) With respect to Financed Student Loans other than Consolidation Loans, depending on the school’s preferred method of delivery, ELSC shall either wire funds or mail a check to the school to be applied to the student’s account. With respect to Consolidation Loans, ELSC shall mail a the check and two copies of the disclosure statement to the prior lenderschool. One copy of the disclosure statement will be provided to the borrowerstudent along with the disbursement check, and the school will retain the other copy. For schools with whom the Master Servicer has authorized ELSC to process Electronic Funds Transfers, ELSC agrees to perform those lender duties and responsibilities specified in the Common Manual: Unified Student Loan Policy, as amended from time to time (the “Guarantor’s Common Manual”). (iv) ELSC shall provide and/or coordinate the mailing of appropriate reports regarding Financed Student Loans to the Master Servicer, including guarantee activity reports, check registers, and disbursement reports. (5) ELSC shall respond to all borrower inquiries in a prompt, courteous and thorough manner.