New Products Update
April 1, 2004

Highlights of Product Development Plan

Coming Summer 2004

• eXpressReports
  New and improved Web-based reports for customers and collection agencies

• E-Billing
  Electronic billing statements for borrowers to review and pay via mycampusloan.com

• Entrance Counseling/Master Prom Note/E-Sign
  Entrance Counseling for borrowers via the Web, including presentation of
  Master Promissory Note and Electronic Signature

• Exit Counseling/Disclosure/E-Sign
  Exit Counseling for borrowers via the Web, including presentation of
  Disclosure Statement and Electronic Signature

• Imaging
  Use of Imaging technology for document retention and retrieval
  
  

• Cohort Management
  Additional service to assist in managing the Cohort Default Rate
  
  

Other Future Enhancements

• Planned Enhancements for mycampusloan.com
  Interactive Forms
  Secure Messaging

• Planned Enhancements for System 3i

Ad Hoc Reports
Payment Posting
In-School Adjustment
Deferment Processing

• Planned Enhancements for the Collections System

Variable Data Input for Collection Letters
Workload Balancing for Collectors
New and Improved Management Reports

Product Descriptions

Coming Summer 2004

eXpressReports
eXpressReports, our Web based report service will provide all customer reports in a secure environment, accessible via our Web site, www.amsservicing.com. When eXpressReports is available, you will be able to access your monthly reports back to July 2003. We will retain a rolling archive of your reports on eXpressReports, and monthly reports will be retained for 24 months; daily and weekly reports will be retained for 6 months.

With eXpressReports, your reports will continue to be available to you immediately, on the Monday following week-end and month-end cutoffs. Reports are easy to identify,
easy to read and review, and easy to print. All reports, including archive reports, will
load quickly into your Web browser with no wait time.

Some features of eXpressReports that you will find beneficial include:

• Ability to search by report name,
• Headers provided on Student Loan Journal,
• More printer-friendly, including PDF documents,
• Easier to download and import data.

E-Billing
With E-Billing, borrowers will be able to register through mycampusloan.com to receive their monthly or quarterly billing statements on-line. At registration, they will be asked to furnish an e-mail address, where we can send an e-mail notification that their bill is ready for viewing on-line. This e-mail will contain a link to their personal password protected Web page where details of the payment are available. The borrower will be able to pay this bill
on-line, as well, using our E-Pay service.

Entrance Counseling/Master Prom Note/E-Sign
This new product will support entrance counseling, electronic promissory notes, and electronic signatures, and is intended to be a timesaving convenience for both our customers and their borrowers.

As currently envisioned, each college or university participating in the program will send us an award file containing award and student information. Then the school or our company will notify the student that his or her Promissory Note needs to be signed. When borrowers enter the Web site to sign the Prom Note, they will be presented with their Entrance Interview, which includes information about the loan that they have just received. At this time, we will also gather personal and contact information from the borrowers that become part of their permanent file. After the Entrance Interview is completed, each borrower will be directed to Master Prom Note for signature. They can sign these documents with a traditional signature, or they may opt for e-sign.

If they choose e-sign, they will select a link that takes them to a pdf file of their Prom Note, along with instructions on completing and returning the form. The borrower will then complete the Prom Note and enter an e-signature and other required authentication information. At this point, the borrower will electronically receive other required documentation to sign or certify. The borrower also will be able to print all these documents for their records. The institution will be notified that the student has signed the document, and the data will be returned electronically to the school. The school and the borrower will be able to view these electronic documents on-line.

The E-Signed Promissory Note process will operate in accordance with the E-Sign Act as well as the U.S. Department of Education’s standards.

Exit Counseling/Disclosure/E-Sign
We are developing a Web-based exit counseling product that will allow borrowers to access and print their Perkins disclosure statements. Borrowers will be able to e-sign the disclosure provided as part of the exit package. The process will be similar to the one for e-signing Prom Notes, as outlined above.

Imaging
Imaged copies of documents received and processed by our company will be captured and made available to customers and internal staff for viewing and printing.

Cohort Management
The Cohort Management Program is another tool to help maintain a low Cohort Default Rate. The program is designed to keep your borrowers out of default by providing a combination of telephone calls and letters aimed specifically at borrowers in your Cohort group. More information on this product will be available next month.

Other Future Enhancements

Planned Enhancements for mycampusloan.com

• Interactive Forms
  Currently borrowers can download and print deferment forms from our Web site. With Interactive Forms, the borrower will be able to enter their personal information, check the appropriate boxes, and type their job description or other relative information prior to printing the form. Once printed, only signatures and supporting documentation will be required.

• Secure Messaging
  To help borrowers communicate sensitive information regarding their accounts to our company electronically, a secure messaging feature will be maintained on servers within our company’s network. This will allow this communication to take place behind the security of firewalls that protect sensitive information and eliminate the security risks encountered with standard e-mail systems.

Planned Enhancements for System 3i

• Ad Hoc Reports
  With the Ad Hoc Reports feature, customers will be able to select from a list of basic reports or create their own report from a listing of available data elements and search/sort criteria. For example, schools could quickly produce a list of all loans within their Perkins program that have a valid e-mail address. Reports can be formatted for printing or downloaded to the customer’s desktop.

• Payment Posting
  Based on their security level, customers will be able to post and reverse non-cash regular and collection agency payments.

• In-School Adjustment
  Using In-School processing, customers will be able to change separation dates, add advances, and update enrollment start/end/effective dates and enrollment status codes.

• Deferment Processing
  With the appropriate security levels, customers will be able to process or remove deferments from borrowers’ loans.

Planned Enhancements for the Collections System

• Variable Data Input for Collection Letters
  In this future enhancement, we will add “reply by” and/or “return date” field(s) to the 'Contact Log' screen and add this new field(s) as a merge code on the 'Custom Letter' table. This will allow schools to further customize letters and add impact to each collection letter.

• Workload Balancing for Collectors
  We will be adding a calendar feature to the 'Worklist' to help the administrator balance daily workload assignments due to collector absences and/or load sharing.

• New and Improved Management Reports
  Based on customer comments, we will be developing reports that allow the administrator to evaluate the success rate of individual collectors and the team as a whole.