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The Student Loan that Pays YOU! October 1, 2011

The Student Loan that Pays YOU! October 1, 2011. Disclaimer.

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The Student Loan that Pays YOU! October 1, 2011

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  1. The Student Loan that Pays YOU! October 1, 2011

  2. Disclaimer • THIS OVERVIEW IS SUBMITTED TO YOU ON A CONFIDENTIAL BASIS SOLELY IN CONNECTION WITH YOUR CONSIDERATION OF A LOAN TO EDUCATE AMERICA FIXED RATE DEPOSITS, LLC. DUE TO THE CONFIDENTIAL NATURE OF THIS OVERVIEW, ITS USE FOR ANY OTHER PURPOSE MIGHT INVOLVE SERIOUS LEGAL CONSEQUENCES. CONSEQUENTLY, THIS OVERVIEW MAY NOT BE REPRODUCED IN WHOLE OR IN PART, AND MAY NOT BE DELIVERED TO ANY PERSON WITHOUT THE PRIOR WRITTEN CONSENT OF THE GENERAL PARTNER. • AN INVESTMENT INTO EDUCATE AMERICA FIXED RATE DEPOSITS, LLC WILL INVOLVE RISK. SUCH RISKS INCLUDE, BUT ARE NOT LIMITED TO, LIQUIDITY, LOSS OF CAPITAL, RESTRICTIONS ON TRANSFERABILITY AND OTHER POTENTIAL RISKS WHICH CANNOT BE DETERMINED IN ADVANCE.

  3. The Goal Provide you the antidote for the low interest rate environment.

  4. Who We Are Stephen Bick, CFA, CMA, CIRA Founder and Portfolio Manager Mr. Bick is the Managing Partner of Cottingham Management Company, LLC. He has managed portfolios of stocks, futures, commodities and bonds over a 25 year career. In addition he has worked as a turnaround strategist performing business valuations, analyzing the risk in energy trading strategies and developing plans of reorganization for multi‐billion dollar companies. He has lectured alternative investment strategies, business valuations and accounting at UCSD Extension.

  5. What We Do Best We underwrite loans to students, guaranteed by financially strong private career colleges across the nation, providing you the opportunity to earn great rates of return on your short-term cash deposits.

  6. Great Rates*: • Bank rates are per BankRate.com as of September 1, 2011.

  7. Safe: • Over 9 years with NO default • Strict underwriting criteria • Gainful employment schools • Title IV schools • Weak schools eliminated • Debt not eliminated through bankruptcy

  8. Guarantee: • Full recourse note from the schools • Guarantees student loans against default • Students that default are covered by the school

  9. Financially Strong: • “Average” Title IV School Financial Position: • Revenue $20 to $40 million annually • 15% plus cash flow • A large tangible net worth • Audited financial statements • Seasoned programs • Nationally accredited • 90/10 Rule

  10. Secure: • Processing Protection • Second largest student loan processor in USA • The company is bonded, licensed and insured • Fund protection • Audited financial statements • Coverage ratio of over 400% • Monthlyfinancial review by fund administrator • Oversight of all transactions ensuring compliance

  11. Portfolio Collateral: • Over 20,000 student loans • Average of $5,000 a loan • In 50 States - no demographic exposure • Loans to students at Private Career Colleges

  12. Liquid: • Interest • Paid monthly based on days invested (unless accrued) • Checks sent out on the 5th of each month • Reserves • Over 30% reserve to service redemptions • $10M in liquid resources to service redemptions

  13. No Market Risk: • The probability of a loss of principal is Less than 0.5% • Assumes a student default rate of more than 75% AND a school default rate of more than 75% • Not open to market fluctuations

  14. Investment Analysis Educate America Hedge Funds Equities Property RETURN Bonds Cash Low Moderate High VOLATILITY

  15. Terms to Meet Your Needs: • Liquidity 3-month 6-month 1-year 2-year • Automatic rollover • Ladder investments for regular liquidity

  16. Costs and Fees • No costs or fees other than 1% for early redemption Redemptions • Notices sent out 50 days prior to redemption Interest • Interest accrued or paid monthly

  17. Minimum Investment $25,000 • Thereafter increments of $5,000 Maximum Investment $2 million • Per person/ business entity per investment term • Larger amounts can be accepted with adjusted terms Current Capacity $50 million

  18. Great Rates (monthly payment)*: Educate America Bank • Amount based on 2-year term and $2,000,000 invested. $6,666.67 $2,166.67

  19. Contact Information: Stephen Bick, CFA, CMA, CIRA 400 S. Sierra Ave., Ste 102 Solana Beach, CA 92075 858 764-7200 steve@fixedratedeposits.com For more information visit our website: www.fixedratedeposits.com

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