MESSAGE FROM THE PRESIDENT CHRISTIANA THORNTON

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2 MESSAGE FROM THE PRESIDENT CHRISTIANA THORNTON President & CEO of The NHHEAF Network Organizations This year marked a significant milestone for The NHHEAF Network Organizations as René A. Drouin, our long-time President and Chief Executive Officer, retired after four decades of service. Like any farewell, this presented the opportunity to reflect upon the journey we have taken over those 40 years. In the ever-evolving student lending environment, one constant is the Organizations remain firmly committed to our mission of helping New Hampshire families plan and pay for college. The Organizations are the only entity in New Hampshire with the sole mission of providing individualized support and resources to students in the State seeking a post-secondary education. With college costs increasing each year, our mission has become even more critical as students struggle with pursuing their dreams and doing so without becoming overburdened with significant student loan debt. Our counselors in the Center for College Planning (CCP) strive every day to provide students and families the tools they need to make educated, well-informed college financing decisions. As a long-time New Hampshire resident, a first-generation college graduate, and the parent of two young children, I understand and deeply appreciate the significance of our mission. To financially support our mission, we have grown our operations throughout the years. With nearly 200 employees, we are a nationally-recognized student loan servicer with nearly 900,000 borrowers receiving top-notch service from Granite State Management & Resources (GSM&R). We continue to be ranked third in the nation by the U.S. Department of Education (USDOE) for borrower satisfaction for federal student loans serviced on USDOE s behalf. As part of this work, our dedicated, highly-skilled loan servicing team confidently, diligently, and professionally counsels borrowers as they strive to successfully manage the repayment of their federal student loans. Some of these borrowers were not fortunate enough to have received proper guidance from a mission-based organization like our own when applying for financial aid and creating their college financing plan. One of our great recent successes has been the growth of EDvestinU, New Hampshire Higher Education Loan Corporation s (NHHELCO) private student loan program. Though offered nationwide, an EDvestinU loan is just one more example of a value-added product provided to students as they receive life-of-loan processing and servicing at our Concord campus - something rare for private student loan lenders. With strong underwriting guidelines in place, this portfolio continues to have a remarkable zero percent default rate. Prior to joining the Organizations, I served on the NHHELCO board for six years and have observed, firsthand, the impact this program has on New Hampshire s college students. What has set the Organizations apart for 40 years our unique, unmatched ability to stand beside our state s students as they pursue their college and career dreams - will continue to set us apart for years to come. I look forward, with great anticipation, to the journey.

3 NEW HAMPSHIRE HIGHER EDUCATION ASSISTANCE FOUNDATION (NHHEAF) FFELP Portfolio by Status (in millions) MICHAEL DEBLASI NHHEAF Board Chairman SEPTEMBER 30, 2018 ASSETS Operating Fund Cash $ 245,504 Investments 15,522,170 Interest receivable 15,750 Accounts receivable - U.S. Department of Education Account maintenance fees 75,141 Defaulted loans, net 75,141 Due from related party 18,000 Other receivables Due from operating fund Total assets: $15,876,565 LIABILITIES AND NET ASSETS Operating Fund Liabilities: Accounts payable and accrued expenses $ 22,827 Due to federal fund 5,491 Deferred revenue 847,000 Federal loan reserve funds held for U.S. Department of Education Total liabilities 875,318 Net assets - unrestricted 15,001,247 Total liabilities and net assets: $15,876,565 NHHEAF BOARD OF DIRECTORS MICHAEL DEBLASI, (Chair) TODD EMMONS, (Vice Chair) Chief Financial Officer, Spaulding Youth Center JEFF FAGAN, (Secretary & Treasurer) Federal Fund $2,486,621 7,007,975 31, , ,731 3,276 5,491 $9,651,693 Federal Fund $ 16,876 9,634,817 9,651,693 $9,651,693 Repayment/ Forbearance Cancelled Defaulted Death, Disable, Bankruptcy Transferred to ED Paid in Full DAVID BELLMAN Owner, Bellman Jewelers, Inc. JOHN GENNETTI Executive Director of Philantrophy, St. Joseph s Hospital SUSAN HUARD President, Manchester Community college Claims Paid/Collected Last Five Fiscal Years (in millions) $ $2, $ $ Claims Paid Claims Collected $233 $343 DEBORAH SCIRE Executive Director, Campus Compact for NH RENÉ A. DROUIN (Ex-officio) President & CEO, GSM&R, NHHELCO, NHHEAF THE HONORABLE CHRISTOPHER T. SUNUNU (Ex-officio) Governor, State of New Hampshire $71

4 GRANITE STATE MANAGEMENT & RESOURCES (GSM&R) Loan Volume Serviced (in millions) CORNELIUS JOYCE GSM&R Board Chairman $14,000 12,000 10,000 12,333 8,000 8,557 6,000 4,000 5,660 4,802 4,496 5,684 2,000 SEPTEMBER 30, 2018 ASSETS Cash $ 1,324,348 Investments 34,875,807 Accounts receivable 6,877 Due from related entities 3,040,388 Property, plant and equipment, net 3,912,339 Assets whose use is limited: Cash collected on serviced loans 954,335 Other assets 51,361 Total assets: $44,165,455 LIABILITIES AND NET ASSETS Liabilities: Accounts payable and accrued expenses $ 3,529,334 Amounts due lenders on serviced loans 954,335 Accrual for estimated loss on serviced loans 1,000,000 Total liabilities: 5,483,669 Net assets - unrestricted 38,681,786 Total liabilities and net assets: $44,165,455 $8,000 6,000 4,000 2, Portfolio Comparison In-Repayment and In-School (in millions) 5,294 4, ,766 4,536 4,040 3,705 3,790 1, ,797 In-Repayment In-School GSM&R BOARD OF DIRECTORS CORNELIUS JOYCE, (Chair) ANTHONY CHISMARK, (Vice Chair) CHARLES ROLECEK, (Treasurer) Owner, The Premier Companies THOMAS HORGAN, (Secretary) New England College MATTHEW COOKSON President & CEO, Cookson Strategic Communications CLINTON HANSON JR. Coordinator of Financial Aid, Thomas More College BRAD POZNANSKI Vice President for Enrollment, New England College SANDRA TRACY Interim President, NH Bankers Association RENÉ A. DROUIN (Ex-officio) President & CEO, GSM&R, NHHELCO, NHHEAF

5 NEW HAMPSHIRE HIGHER EDUCATION LOAN CORPORATION (NHHELCO) DANIEL R. DUBREUIL NHHELCO Board Chairman Outstanding Portfolio by Loan Type = $622.4 (in millions) TREE $25.6 SEPTEMBER 30, 2018 ASSETS Cash and cash equivalents $ 663,359 Restricted cash 16,489,006 Amounts due from loan servicer 677,119 Interest receivable 11,985,355 Amounts due from U.S. Government- Subsidized interest and other 2,628,134 Investment securities 50,648,632 Student loans, net 606,888,224 Total assets: $689,979,829 LIABILITIES AND NET ASSETS Liabilities: Lines of credit $125,736,374 Accounts payable and accrued expenses 1,421,683 Accrued interest payable 1,485,239 Special allowance and fees payable to the US Government 367,311 Due to related entities 3,045,195 Notes payable, net 336,825,414 Total Liabilities 468,881,216 Subsidized Stafford $45.0 Unsubsidized Stafford $45.5 EDvestinU $185.6 PLUS $7.6 LEAF $71.3 FFEL Consolidation $241.8 Net assets - unrestricted 221,098,613 Total liabilities and net assets: $689,979,829 NHHELCO BOARD OF DIRECTORS DANIEL R. DUBREUIL, (Chair) President, Mathes Associates LINDA D. NORMANDIN, (Vice Chair & Treasurer) HARVEY HILL, (Secretary) PETER BURGER Attorney, Orr & Reno 29.8% 11.5%* 1.2% 7.3% SUSAN HOWARD TIM SINK President, Greater Concord Chamber of Commerce CHRISTIANA THORNTON President, NH Bankers Association 4.1%* 7.2% * Does not include defaults 38.8%

6 RENÉ A. DROUIN RETIRES Our Directors, Officers and Team members wish to take a moment to recognize René A. Drouin, our third President & CEO, as he retires after 40 years of service with The NHHEAF Network Organizations. René assumed the title of Immediate Past President and Chief Executive Officer in November 2018 and will retire from the Organizations in February He was elected President and Chief Executive Officer in July 1997 and has served in many capacities during his tenure with the Organizations. We sincerely thank René for his leadership and wish he and his wife Cyndi well as they begin this new chapter in their lives. The NHHEAF Network Organizations are comprised of three active 501(c)(3) nonprofit agencies - New Hampshire Higher Education Assistance Foundation (NHHEAF), Granite State Management & Resources (GSM&R), and New Hampshire Higher Education Loan Corporation (NHHELCO). Our mission is to provide funding assistance for New Hampshire students and parents pursuing a higher education; and to provide quality service to not only those individuals, but to the educational and financial institutions which participate in and utilize our programs. We recognize that the quality of these ongoing services is dependent upon our maintaining a sound financial base. Towards that end, we are committed to the continuous evaluation of current services and the development of new programs which better serve our various constituencies and contribute to the strength of our organization. Learn more about the Organizations at nhheafnetwork.org. 4 Barrell Court Concord, NH 03301