INCOME SHARE LOAN APPLICATION & SOLICITATION DISCLOSURE

The following provides information about the Income Share Loan (“ISL”). If approved, you will be able to enter into an ISL with the Lender, where the Lender will disburse funding to your Educational Institution on your behalf, and in return, you will agree to make future payments to the Lender calculated based on your Gross Income as defined in the Income Share Loan Agreement.

Payment Terms & Fees

1 Your Maximum Payment Period is inclusive of any months where Monthly Payments are made as well as any months that are Deferred Months; this will only be extended if you receive Forbearance, which will extend your Maximum Payment Period on a one-for-one basis.

Estimated Payment Schedule & Examples

The total amount you will pay for this Income Share Loan will vary depending on your future Gross Income. Subject to the other terms outlined in this Disclosure and in your Income Share Loan Agreement, you will repay a fixed share of your Gross Income during the Payment Term, provided you earn at least the Minimum Income Threshold and have not yet paid an aggregate amount equal to the lesser of the Multiple Payment Cap or that would cause your Implied Annual Percentage Rate to equal the Implied APR Cap.

To help illustrate how much you might pay under this Income Share Loan Agreement we have provided the tables below showing the total ISL payments at different levels of Gross Income, assuming an Income Share of 7.20% and a Total Loan Amount of $10,000.00 and 3 months to graduation. For simplicity, the chart assumes that your Gross Income is consistent throughout the entire Payment Term. Your total payments may be less or more than estimated here if your certified Total Loan Amount is less than the maximum available Loan Amount. PLEASE REVIEW YOUR FINAL DISCLOSURE FOR TOTAL PAYMENTS APPLICABLE TO YOUR FINAL CERTIFIED TOTAL LOAN AMOUNT.

When your Monthly Gross Income is less than the Minimum Income Threshold, your account will be placed in a deferment status, and you will not be required to make payments. If your cumulative payments reach the lesser of the Multiple Payment Cap or the Implied APR Cap, then you make no further Monthly Payments, even if you have paid less than the Maximum Monthly Payments, and your account is closed in good standing. The total payments column and total monthly payments made column assume that your Monthly Gross Income remains the same over the Payment Term. Your actual total payments may be higher or lower than the projected amount in this illustration since your Monthly Gross Income may fluctuate over time. Remember that your Monthly Gross Income will depend on many factors, including your occupation, industry, and the area of the country in which you work.

Alternatives to an ISL

The Training Course is NOT eligible for federal education loans. You should seek advice about your education financing options from a trusted advisor.

If you are interested in enrolling in your Training Course, but are not interested in the Income Share Loan, you may be able to fund your Training Course through (but not limited to):

●        Savings and other out-of-pocket contributions

●        Employer sponsorship

●        Private loans

Next Steps

1. Find Out About Other Student Financing Options.

Contact Hackbright’s team for more information by going to https://hackbrightacademy.com/payment-plans/, or by contacting your Hackbright Enrollment Advisor directly.

2. To Apply for this ISL, Complete the Application.

Consult with your school’s financial aid office to determine if additional aid is available and applicable for your program of study. If you are approved for this ISL, the ISL terms will be available for 30 days (terms will not change during this period, except as permitted by law).

2 Due to the impact of the Multiple Payment Cap and Implied APR Cap, the Monthly Payment owed in the final month of payment may be less than this amount.

3 This assumes you have the same Gross Income from the first day of your Payment Term until the end of the Payment Term, and that no deferrals or other pauses to payments occur. Your income will likely change over time.

Reference Notes

Eligibility Criteria

To be eligible to participate in the Income Share Loan Program, you must:

•         Be enrolled at least half-time in an eligible Program

•         Be 18 years old at the time of contract execution

•         Be a United States citizen, Permanent Resident, or eligible for work and residency under DACA or TPS programs

•         Legal right to work in the US or be present in the US under Temporary Protected Status (TPS) and have a valid and current employment authorization document

•         Be a resident of any U.S. state with the exception of: Colorado or West Virginia

•         Provide a verifiable physical domestic (US) address; for example, P.O. Boxes are not acceptable

•         Complete any required pre-training course work as may be required by Eligible School

How will your Gross Income be determined?

Please refer to the definition of “Gross Income” in Section 1 of the Income Share Loan Agreement for a full definition. In summary, the Lender defines Gross Income as your total gross amount of all combined gross wages, compensation, and gross income from self-employment reported or required to be reported on an income tax return. Gross Income also includes non-cash consideration received by you or deemed earned by you, directly or indirectly, such as contributions made to a deferred or equity compensation plan on your behalf. Income and distributions received by you from your participation in any entity. Equity rights or deferred compensation received during the Payment Term. Any amounts earned by or payable to you, directly or indirectly, as a result of your provision of services to a related party.

Monthly Payments

Your Monthly Payments equal your Income Share times the amount of your Qualified Monthly Gross Income. We calculate your initial payments using your pay stub, letter from your employer, self-employment contract, consulting agreement, or other verifiable source acceptable to us. We re-calculate your Monthly Payments any time your Gross Income changes, based on information you provide us such as an updated pay stub. We also re-calculate your Monthly Payments once per year upon your filing income tax returns with the IRS.

Reconciliation

Annually, we will perform a reconciliation process, requiring a copy of your tax return and your authorization to obtain a tax transcript (currently, an IRS Form 4506). We will calculate your Gross Income, verify it against your tax return, and compare it to the amounts you reported and paid during the year. If you underpaid during the year, you will have thirty (30) days from receipt of notice of such underpayment to pay the aggregate amount of the underpayment.

If you overpaid during the year, we will apply the overpayment to your future Monthly Payment obligations, or you can elect to have the overpayment refunded to you. We will use your updated Gross Income information to set your new Monthly Payments thereafter. The amount of these Monthly Payments can be changed any time you provide updated Gross Income information that warrants a change.

Payment Status

If your Monthly Gross Income is above the Minimum Income Threshold, your Monthly Payments will begin at the start of your Payment Term.  You will only receive a Grace Period if you graduate from your Training Course. If you withdraw from your Training Course, you will not receive a Grace Period— your Payment Term will immediately begin and you will make Monthly Payments when your Monthly Gross Income is above the Minimum Income Threshold.

We will calculate your first Monthly Payment using a verifiable source of your Monthly Gross Income that you provide to us at least 30 days before the beginning of your Payment Term. During the Payment term, if your Monthly Gross Income during a given month is less than the Minimum Income Threshold, or if you are unemployed and can demonstrate that you are actively seeking employment, you have no obligation to make a Monthly Payment. You must contact the Lender to let us know that your Monthly Gross Income is below the Minimum Income Threshold. Do not stop making Monthly Payments without notifying us.

In months when your Monthly Gross Income is less than the Minimum Income Threshold and you do not make a Monthly Payment, the month does not count towards your required number of Maximum Monthly Payments, but the month does count towards the Maximum Payment Period.

Forbearance

Under certain circumstances, in our sole discretion, we may grant you a forbearance. You may upon approval take up to a total of six (6) months of forbearance, though a forbearance period cannot be longer than three (3) continuous months at one time. During a forbearance, you will not be required to make Monthly Payments. Months you are in forbearance will extend your Payment Term on a one-for-one basis.

Early Termination

You may terminate your Income Share Loan Agreement at any time by making a payment equal to the (X) lesser of (A) the Multiple Payment Cap or (B) the Implied APR Cap, less (Y) the sum of all Monthly Payments already made at that time, plus (Z) any outstanding fees.

Bankruptcy; Death; Disability

If you file for bankruptcy, you may still be required to pay back the Income Share Loan Agreement. However, the Lender will not enforce its rights under the United States Bankruptcy Code in this way and shall at no time assert that the Income Share Loan Agreement is non-dischargeable as a qualified student loan as set forth in 11 U.S.C. § 523(a)(8) or such other law that may, in the future, limit the dischargeability of income share agreements where such limitation on dischargeability is based upon the use of the Income Share Loan for educational expenses. However, we may seek the payment of any amounts that were due and unpaid as of the date of your bankruptcy filing.

We will waive what you owe under the Income Share Loan Agreement, including any past due amounts, if you die or become disabled. If you would like to assert a waiver based on disability, you will need to provide documentation showing that you have been found to be permanently disabled by the Social Security Administration or other federal or state agency due to a condition that began or deteriorated after the Effective Date of the Income Share Loan Agreement.

Privacy

Your privacy is important to Stride and FinWise Bank. You have been provided with the Privacy Policy that sets forth how we use your information. The Privacy Policy is also available at:

www.stridefunding.com/privacypolicy and https://www.stridefunding.com/finwise-bank-privacy-policy.

Other important terms

• Under the Income Share Loan Agreement, you are expected to seek full-time employment immediately following the completion of Training Course, and to take all actions to remain employed for the duration of the Payment Term. If you do not comply with these covenants, you may be considered in breach of the Income Share Loan Agreement.
• You are entitled to seek and obtain employment while enrolled in your Training Course, though you are not required to under the Income Share Loan Agreement, nor will such employment affect your Monthly Payments owed to the Lender.
• If you need to take time off of work for longer than a month, you are required to inform us in advance; your Payment Term may be deferred or otherwise adjusted.
• FOR VIRGINIA RESIDENTS: Income Share Loans are one tool that students use to finance their education. The Lender and your Educational Institution's Financial Aid Office provide assistance with eligibility for traditional fixed payment installment loans or income share agreements. For students who have existing private education loans, Virginia has a Student Loan Advocate to assist those who are struggling with repayment. You can contact the Student Loan Advocate at: State Council of Higher Education for Virginia, James Monroe Building, 10th Floor, 101 N. 14th Street, Richmond, VA 23219; studentloan@schev.edu; 804-786-2832. In addition, resources for prospective and current private education loan borrowers are available online at schev.edu/privateloan

For a full set of Terms and Conditions, you should consult your Income Share Loan Agreement.