Adjustable Interest Rate and Monthly Payment Changes

A. Change Dates

The interest rate I will pay changes every three months and is set on the 15th, or proceeding business day, in the months of March, June, September and December, and is effective on the 1st of the following month. The date on which my interest rate changes is called a “Change Date.”

B. The Index

Beginning with the Disbursement Date and following each Change Date, my adjustable interest rate will be based on an Index that is calculated and provided to the general public by an administrator (the “Administrator”). The “Index” is a benchmark, known as the three-month CME Term Secured Overnight Financing Rate (Term SOFR) Index. The Index is currently published in, or on the website of, CME Group. The most recent Index value is called the “Current Index,” provided that if the Current Index is less than zero, then the Current Index will be deemed to be zero for purposes of calculating my interest rate.

If Lender determines, in its sole discretion, that the Term SOFR Index has become unavailable or unreliable, either temporarily, indefinitely, or permanently, during the term of this Note, Lender may amend this Note by designating a substantially similar replacement index “Replacement Index.”

C. Calculation of Changes

Before each Change Date, the Note Holder will calculate my new interest rate by adding 1.50 or 2.50 percentage points (1.500% or 2.500%) (the “Margin”) dependent upon my state of legal residence or the location of the school I am attending to the Current Index. The Margin may change if the Index is replaced in accordance with Section (G) below. The Note Holder will then round the result of the Margin plus the Current Index to the nearest one-eighth of one percentage point (0.125%). Subject to the limits stated in Section (D) below, this rounded amount will be my new interest rate until the next Change Date.

The Note Holder will then determine the amount of the monthly payment that would be sufficient to repay the unpaid principal that I am expected to owe at the Change Date in full on the Maturity Date at my new interest rate in substantially equal payments. The result of this calculation will be the new amount of my monthly payment.

D. Limits on Interest Rate Changes

The interest rate I am required to pay at the first Change Date will not be greater than 10.000% or less than 0.000%. My interest rate will never be greater than 10.000% or less than 0.000%.

a. If I am a North Dakota resident and this Loan is used to refinance my private student or educational loans, my interest rate will not increase more than 1.000% annually starting on the date my Loan is made. The annual maximum interest rate is reset each year on the anniversary of the date my Loan was made and is based on the interest rate in effect on the last day of the current 12-month period.

E. Effective Date of Changes

My new interest rate will become effective on each Change Date. I will pay the amount of my new monthly payment beginning on the first monthly payment date after the Change Date until the amount of my monthly payment changes again.

F. Notice of Changes

The Note Holder will deliver or mail to me a notice of any changes in my adjustable interest rate before the effective date of any change. The notice will include the amount of my monthly payment, any information required by law to be given to me and also the title and telephone number of a person who will answer any question I may have regarding the notice.

G. Replacement Index and Replacement Margin

If Lender determines, in its sole discretion, that the Term SOFR Index has become unavailable or unreliable, either temporarily, indefinitely, or permanently, during the term of this Note, Lender may amend this Note by designating a substantially similar replacement index “Replacement Index.” Lender may also amend and adjust the Margin to accompany the replacement index so that the effective rate then being paid by Borrower is substantially similar to the rate previously paid by the Borrower. The change to the Margin may be a positive or negative value, or zero “Replacement Margin.” In making these amendments, Lender may take into consideration any then-prevailing market convention for selecting a Replacement Index and Replacement Margin for the specific Term SOFR Index that is unavailable or unreliable, but shall, in any event, use the same Replacement Index and Replacement Margin as it uses for similarly situated borrowers on comparable loans. Such an amendment to the terms of this Note will become effective and bind Borrower ten (10) Business Days after Lender gives written notice to Borrower without any action or consent of Borrower.