CalEdge Loan Program Gets High Marks From Schools; Gives California Students the Opportunity They Deserve.

SAN FRANCISCO--(BUSINESS WIRE)--May 12, 1999--

Only 10 months after its launch, the CalEdge(SM) Loan Program has received high marks from financial aid administrators across the state of California.

Twenty-six California public and private colleges and universities have signed up to participate in the program, and students at these schools can now take advantage of the benefits of this unique credit-based, fixed-interest-rate education loan.

CalEdge is designed to provide California students with an affordable loan to supplement other sources of financial aid, such as federal grants and guaranteed student loans. It is co-sponsored by two of the most respected names in California education finance: the California Educational Facilities Authority (CEFA), a department of the California State Treasurer's Office, and Chela Financial USA, Inc.

"Education is the key to success," said California State Treasurer Philip Angelides, who is Chairman of CEFA. "This low-fee, fixed-interest-rate loan program will help make the difference for thousands of deserving California college students." -0-

    Special features of the CalEdge Loan include:

--   A 7.8% fixed rate for students who make payments of both
     principal and interest or interest only while in school, and
     8.25% for those who defer their payments
--   New credit underwriting criteria -- even more students can
     qualify
--   No application fee
--   A low 5% origination fee (no additional fees at repayment)
--   Generous loan limits, up to the cost of education less other aid
-0-

"A big plus to CalEdge is the fixed and relatively low interest rate," said Lily Ling, Financial Aid Advisor, University of California, San Francisco. "Over ten years of repayment, this low, fixed rate saves students and their families money."

Schools interested in learning how they can participate in the CalEdge Loan Program should contact Chela Financial USA at 1-800-347-4352. CalEdge is one of many new products the company is developing to make education more affordable and accessible to students and families.

Chela Financial president, Carol L. Coffman, says, "Both Chela Financial and CEFA have long-standing ties to California schools. In designing CalEdge, we talked with hundreds of financial aid administrators across the state who requested an affordable, fixed-rate loan for students. Now that the loan has been launched, we're adjusting our credit criteria in response to their feedback so that even more students can qualify."

Chela Financial USA, Inc. (www.chelafinancial.com) is part of the Chela Financial family of nonprofit companies that provide financial access and assistance to students pursuing a postsecondary education. Since its first bond financing in 1984, Chela Financial has made nearly $3 billion available to more than 600,000 parent and student borrowers. CEFA (www.treasurer.ca.gov) is a public agency of the State of California, organized to provide support to California private and public colleges and universities in helping students finance their educational costs.