P.O. Box 58429 Raleigh, NC 27658

Duke University

Application and Solicitation Loan Interest Rate & Fees

Your Starting Interest Rate

(upon approval) will be: Your Interest Rate during the life of the loan:

8.25% Your rate is variable and is the highest Prime Rate as stated in the Wall Street Journal (index) plus a margin of 5.00% to the value of the index. The rate on new and

existing balances will change on the 1st day of each year to reflect any change in the

index. We will use the index value available to us as of 10 days before the date of any

APR adjustment. The maximum ANNUAL PERCENTAGE RATE will never be

greater than the maximum rate allowed by state law in North Carolina which is

currently 18.00%. There is a minimum ANNUAL PERCENTAGE RATE of 5.00%

(floor). The rate will not increase more than once a year, but there is no limit on the

amount that the rate could increase at one time. Any increase in the Annual Percentage Rate will take the form of more payments of the same amount.

After the starting rate is set, your rate

will then vary with the market

LOAN FEES Origination Fee: a fee of 3% of the total amount disbursed will be charged to make each disbursal. Late Charge: If you are more

than fifteen (15) days late in making any payment, a late charge of $10.00 will be deducted from your payment for each late payment.

You may repay all or part of what you owe at any time without any prepayment penalty.

LOAN COST EXAMPLES The total amount you will pay for this loan will vary depending upon when you start to repay it. This example provides estimates

based upon three (3) different repayment options available to you while enrolled in school.

Repayment Option (while enrolled in school)

Amount Provided (amount provided

directly to you or

your school)

Interest Rate (highest

possible starting

rate)

Loan Term (how long you have to

pay off the loan)

Estimated Total Paid over 20 years (includes associated

fees)

1. DEFER PAYMENTS Make no payments while enrolled in

school. Interest will be charged and

added to your loan

$10,000 8.25% 20 years starting after the

deferment period

$24,679

2. PAY ONLY THE INTEREST Make interest payments but defer

payments on the principal amount while

enrolled in school.

$10,000 8.25% 20 years starting after the

deferment period

$22,520

3. MAKE FULL PAYMENTS Pay both the principal and interest

amounts while enrolled in school.

$10,000 8.25% 20 years

starting after your first

payment

$20,458

About this example It is based on the starting rate currently charged and associated fees. Once the loan goes into repayment, loan amounts up to

$40,000 will have a term of 20 years, and for loan amounts more than $40,000, repayment will last 25 years. You may repay all or

part of what you owe at any time without any prepayment penalty. The rate is variable so it may increase as disclosed above. Any

increase in the Annual Percentage Rate will take the form of more payments of the same amount. EXAMPLE: If your loan was

$3,000.00 at 12% for 24 months and the rate increased to 13% after one year, you would have to make one additional payment.

REFERENCE NOTES Eligibility Criteria be enrolled at a regionally accredited graduate business

degree granting educational institution where it has been

approved for full participation in the federally guaranteed

student loan program by the United States Secretary of

Education and meets default rate requirements of Coastal

Federal Credit Union or its insurer, meet the enrollment requirements approved for the school, be at least a half-time student as defined by said education

institution,

be 18 years of age to apply,

meet specific credit requirements before you can be approved for the loan.

Bankruptcy Limitations If you file for bankruptcy you may still be required to pay

back this loan.

More information about loan eligibility and repayment

deferral or forbearance options is available in your loan

application and loan agreement.