Overall
Some lenders will exit sector
Financial aid officers will be regulated to do what is in best
interest of students
Reduce interest rate
subsidy
Lower margins on federal student loans
Reduced incentives to financial aid officers
Reduced ability to lock up volume at certain schools
Reduce guarantee rates
Lower margins on federal student loans
School as lender deals in jeopardy
Eliminate Preferred Lender
Lists
Reduced market share (1,500 schools have two lenders with
90% market share)
Eliminate perks to colleges
Lower sales expense
Revise business model due to reduced exclusivity
Eliminate lender-sponsored
call centers
Business disruption
Sale or closing of call centers
23
Proposed Regulations Effect on Other Lenders
Proposed Regulations Effect on MRU
Overall
Reduced competition/increased market share
Lower customer acquisition costs
Better rates for students!
Reduce interest rate
subsidy
No effect on P+L
MRU now discounts federal loans
Reduce guarantee rates
No effect – origination focused on high quality private loans
Federal loans < 5% of originations
Eliminate Preferred Lender
Lists
Increased market share for MRU as students shop for best
offer
Eliminate perks to colleges
No effect on P+L
Increased market share for MRU
Eliminate lender-sponsored
call centers
No effect
24
New Strategic Partnerships
Leading provider of test prep and educational services
Reach over 50% of college and graduate school-bound students annually
More than two million students applying to college and grad school
are assisted by The Princeton Review every year
Exclusive multi-year education financing partnership
MyRichUncle featured on The Princeton Review website; in their popular
books; and at a broad spectrum of events at high schools and colleges
Exclusive right to market The Princeton Review’s extensive database
MyRichUncle innovative test prep loan
Initial co-branded marketing campaigns generating strong response
25
New Strategic Partnerships
World’s largest student and youth travel company
More than 300 branches in 90 countries
Servicing 2.5 million students every year
More than 70 retail locations in U.S.
Aligns MRU with the 18 to 30 year-old market
Distribution at retail for MRU products
Additional direct-to-consumer point of contact
MyRichUncle innovative travel financing products
26
Corporate and Capital Market Milestones
27
June 2007
First securitization of $200 million of prime private loans
Mar/Apr 2007
Partnered with The Princeton Review and STA Travel
October 2006
Listed on NASDAQ under symbol UNCL
May 2006
Began student advocacy position
May/June 2006
Launched Preprime and Federal student loan products
January 2006
$175 million credit facility with Merrill Lynch
May 2005
Launched MyRichUncle private loan platform
July 2004
Merged into NASDAQ listed company (MHOI )
1999 to 2004
Developed credit and origination model with data back to 1967
MRU Capital Structure
Shares (6/30/07)
Common Stock
25,714,393
Convertible Preferred
8,257,575
Primary
33,971,968
Warrants
Outstanding
6,555,292
Options Outstanding
4,954,814
Fully Diluted
45,482,074
Market Cap
(at $6.30 Treasury Stock
Method)
$250 MLN
Stock Symbol
UNCL
Exchange
NASDAQ Global Market
Added to Russell Microcap
Index
June 2007
First $200mm securitization
June 2007
28
MRU Key Investment Characteristics
Student lending is fastest growing segment of consumer finance
market
Building brand equity as an advocate for a growing student
population
Broad range of competitively-priced products through efficient
direct-to-consumer model
Proprietary underwriting platform incorporating credit/income
data
Securitization business model
Strong management team
29
Appendix
30
MRU in the Media – Tech’s Best Young Entrepreneurs
31
MRU in the Media – Fast Company’s Fast 50
32
MRU in the Media—Launch of Federal Loan Product
33
MRU in the Media—Introduction of Preprime Loans
34
Fastest Growing Consumer Finance Asset Class
Private student loan business growing 25% annually
Growth accelerating as consumers move away from home equity and
savings to finance education costs
Student loan sector dominated by Sallie Mae and others
focused on federal student loan market
Banks and finance companies focus on mortgages and credit cards
Limited number of companies provide private student loans on
principal basis
First Marblehead (FMD), the leading pure private loan play, grew 10x+
in past five years
35
Lower Risk than Other Unsecured Consumer Loans
College grads have lower borrowing risk for lenders
Higher annual income growth
Higher lifetime income
Lower unemployment rate and variability
Majority of loans are co-signed
Co-signed loans are serviced by two incomes
Growing post-graduation income for students
Co-signers provide support for early life-cycle payments
36
Education Costs Increasing Faster than Income
Cost of
attendance
increasing over
10x compared
to income
growth
Inflation-Adjusted Change in Family
Income vs. Tuition and Fees at Four-
Year Schools from 1995-96 to 2005-06
37
Demand for Student Loans Is Inelastic Year-on-Year
Demand for education increasing while supply (schools) remains flat
Student enrollment up 23% in past ten years
Projected enrollment up 13% by 2015
Enrollment rises in good and bad economic cycles driving demand for
student loans
Tuition rising and acceptance rates dropping
38
Student Loans a Better Credit Risk – Higher Annual Income
Average Annual Income by
Education Level Achieved
($ in thousands)
Average income
of college
graduates is 65%
greater than
general
population
39
Student Loans a Better Credit Risk – Greater Income Growth
% Change in Annual Income
in 2005 Constant Dollars
(1995 to 2005)
Income of
college and
above graduates
increasing while
others declining
40
Student Loans a Better Credit Risk – Lower Unemployment Levels
Unemployment by Level
of Education Achieved
Unemployment
rates for college
graduates are
far below
general
population
41
Volume Growth by Same Quarter is Very Strong
Q1 08 will continue to
show healthy growth
in origination volume
vs. Q1 07
($ in Millions)
42
Sources
43
There are industry and economic data throughout this presentation that were
sourced from The College Board, IES National Center for Education Statistics, Student Market Measure and the Bureau of Labor Statistics.
