Market Overview

Interest Rates on Connext™ Private Student Loans Decrease as Federal Student Loan Rates are Set to Rise

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ReliaMax®, the complete private student lending solutions provider,
today announced that the banks and alternative lenders participating in
the Connext® Private Student Loan program will lower the interest rates
on those loans. Effective June 1, 2017, the lowest rates for variable-
and fixed-interest rate Connext® loans for undergraduate and graduate
programs will be reduced to 2.87 percent APR* and 5.40 percent APR*,
respectively, and the borrower will not be charged an origination fee.

ReliaMax urges students and their families to carefully research and
evaluate all available options to fund their higher education costs as
they head to college and university programs this Fall. Options include
federal aid, which, for certain borrowers, may include income-sensitive
repayment and loan-forgiveness programs.

Federal student loan interest rates on new loans are scheduled to
increase on July 1 for the 2017-2018 school year. These interest rates
are adjusted each year based on the annual Treasury Department auction
plus a set percentage amount added for each type of loan program.
According to MarketWatch,
the interest rate for the 2017-2018
school year
is 4.45 percent for undergraduate federal student loans,
6.00 percent for graduate federal student loans, and the rate increases
to 7.00 percent for both Graduate PLUS and Parent PLUS loans. In
addition, there are loan origination fees charged to the borrower for
both undergraduate and PLUS loans of 1.069 percent** and 4.276
percent**, respectively.

"For most students and their families, rising federal student loan
interest rates and the increasing costs of tuition, books, and room and
board are major causes for concern. The new, lower variable- and
fixed-rate Connext Private Student Loans keeps our commitment to help
make higher education more affordable. We believe this is paramount to
reducing a student's financial burden when they put their education to
use in amazing ways after graduation," said Michael VanErdewyk, Chairman
and CEO of ReliaMax. "For some students, the federal student loan
interest rate increases may price them out of pursuing their education
goals. By reducing interest rates for the Connext Private Student Loan,
banks and alternative lenders that are working with ReliaMax will be
able to provide students with important and valuable funding
alternatives before they head to school this Fall," he added.

The ReliaMax commitment to offer "real loans for real people" enables
lenders participating in the Connext program to serve more families by
providing private student loans across a broad credit spectrum and a
wide range of program types such as undergraduate, graduate,
international medical and MBA. Additional features of the Connext
Private Student Loan program include:

  • Loans funded by originating banks and alternative lenders
  • Loans cover up to 100 percent of all school-certified educational costs
  • Contact with a Student Lending Specialist for the lifetime of the loan
  • Repayment options for each borrower's unique situation

For more information, please visit ConnextLoans.com
or (888) 558-5572 to speak with a US-based private student loan
specialist.

About ReliaMax

ReliaMax has helped over 450 banks, credit unions, alternative lenders
and investors to fund more than $3 billion in loans to students
attending over 2,300 non-profit colleges and universities. Through its
complete Private Student Loan Platform-as-a-Service solution, which
includes originating, servicing, borrower acquisition, portfolio
liquidity and insurance provided by ReliaMax Surety Company***, ReliaMax
enables lenders to quickly, easily and safely help student borrowers
realize their education goals. For more information, visit ReliaMax.com.

* Annual Percentage Rate (APR). This loan has a variable interest rate
equal to the 3Month LIBOR (as published in The Wall Street Journal) plus
a margin. The current 3Month LIBOR is 1.15% as of March 20, 2017 used
for the rates effective April 1-June 30, 2017. The APR was calculated on
a $12,000 loan with payments deferred for 2.5 years. The low APR rate
includes a 0.25% discount for automatic payments and a 10 year repayment
term. The high APR rate does not include a discount and a 15 year
repayment term.

** Loan fees for Direct Subsidized Loans, Direct Unsubsidized Loans, and
Direct PLUS Loans first disbursed on or after Oct. 1, 2014 and prior to
Oct 1, 2017. https://studentaid.ed.gov/sa/types/loans/interest-rates

***Private student loan insurance is not available for lenders located
in California.

Trademarks

ReliaMax® is a registered trademark of ReliaMax and/or its affiliates.
Other names may be trademarks of their respective owners.

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