Pheaa Student Loan Foundation Inc.

“All directors are to be appointed by resolution of the executive committee of pheaa, provided, however, if pheaa's executive committee fails to appoint directors, the president judge of the commonwealth court of pennsylvania shall have the power to appoint the directors.”

“The foundation does not have any committees. Form 990, part vi, section a, line 9: address of directors that cannot be reached at the foundation's mailing address: wsfs spe services llc jennifer luce 300 bellevue parkway, suite 300 wilmington, de 19809 wsfs spe services llc rebecca howell 300 bellevue parkway, suite 300 wilmington, de 19809”

“The foundation engages an independent accounting firm to assist in the compilation and completion of form 990. It is reviewed by outside legal counsel, who provided comments and advice as to potential factual issues. The form 990 is then provided to each director for his or her review prior to submission to the irs.”

“The foundation makes its governing documents and financial statements available to the general public upon request.”

“The pheaa student loan foundation, inc. (foundation) is organized to carry out student loan securitization transactions for the benefit of pennsylvania higher education assistance agency (pheaa) so pheaa can improve higher education opportunities for students and facilitate its other governmental purposes.”

“The foundation, a non-stock, non-member, nonprofit corporation incorporated under pennsylvania's nonprofit corporation law of 1988, as amended, is organized to carry out student loan securitization transactions for the benefit of, and to carry out the purposes of, the pennsylvania higher education assistance agency (pheaa), a state agency of the commonwealth of pennsylvania (commonwealth), created and controlled by the commonwealth's legislature. The foundation's exempt purpose is to facilitate the securitization of student loans in order to raise funds for pheaa so that pheaa may continue to make, service and buy student loans and to otherwise improve higher educational opportunities for students, and for any of pheaa's other statutory purposes, thereby lessening pheaa's burdens of government.”

“The foundation forms special purpose statutory trusts under the laws of the state of delaware. The principal purpose of the trusts are to securitize student loans and related assets, by acquiring student loans from the foundation and issuing promissory notes secured by a pledge of such assets. However, as a cash basis taxpayer, the foundation does not have to recognize its residual interest as revenue until the cash flows become available. The foundation distributes to its sole beneficiary, pheaa, from time to time, all of the cash flows derived from the student loan trusts, net of expenses (operating expenses and principal, and interest payments to investors). Pheaa uses the proceeds from the sale of the student loans to continue other activities that subsidize the costs of higher education and satisfy pheaa's statutory mission. As of the beginning of the reporting period, the foundation had eleven active special purpose trusts. On november 14, 2012, pheaa student loan trust 2012-1 issued notes in the amount of $536,400,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On november 20, 2013, pheaa student loan trust 2013-3 issued notes in the amount of $517,850,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On march 14, 2014, pheaa student loan trust 2014-1 issued notes in the amount of $573,800,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On june 17, 2014, pheaa student loan trust 2014-2 issued notes in the amount of $611,850,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On september 18, 2014, pheaa student loan trust 2014-3 issued notes in the amount of $646,700,000, and used substantially all of the proceeds of the notes to purchase certain student loans. On april 22, 2015, pheaa student loan trust 2015-1 issued notes in the amount of $636,900,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On september 14, 2016, pheaa student loan trust 2016-1 issued notes in the amount of $543,523,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On november 22, 2016, pheaa student loan trust 2016-2 issued notes in the amount of $382,700,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On october 29, 2018, pheaa student loan trust 2018-1 issued notes in the amount of $426,700,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On august 11, 2021 pheaa student loan trust 2021-1 issued notes in the amount of $665,400,000 and used substantially all of the proceeds of the notes to purchase certain student loans. On july 12, 2013, pheaa warehouse facility trust 2013-1 (warehouse trust 2013-1) was established as a short-term financing facility to pledge, sell, transfer or convey student loans or other assets acquired, or to be acquired, to other third parties special purpose entities, or to obtain replacement financing for any assets acquired, or to be acquired, through securitization transactions in order to accomplish or facilitate one or more of pheaa's statutory purposes.”

“The financial statements of the foundation are not compiled or reviewed by an independent accountant, nor are they audited by an independent accountant. However, the foundation is included in pheaa's annual audited financial statement as a blended component unit. Pheaa student loan trust 2013-3, pheaa student loan trust 2014-1, pheaa student loan trust 2014-2, pheaa student loan trust 2014-3, pheaa student loan trust 2015-1, pheaa student loan trust 2016-1, pheaa student loan trust 2016-2, pheaa student loan trust 2018-1 and pheaa student loan trust 2021-1 have independent audits of their respective financial statements prepared annually. The pheaa warehouse facility trust 2013-1 has a review of its respective financial statements prepared annually.”

“1099s are not issued to our independent contractors because the payments made are not reportable payments to corporations, therefore, they are not required, per the irs instructions for issuing 1099s.”

“Residual transfers to pheaa -40,877,260. Equity distribution 13,112,932.”

“Cash basis - the pheaa student loan foundation (foundation) uses the cash method of accounting. As of the end of the reporting period, the foundation had ten special purpose trusts known as the pheaa warehouse facility trust 2013-1, pheaa student loan trust 2013-3, pheaa student loan trust 2014-1, pheaa student loan trust 2014-2, pheaa student loan trust 2014-3, pheaa student loan trust 2015-1, pheaa student loan trust 2016-1, pheaa student loan trust 2016-2, pheaa student loan trust 2018-1, and pheaa student loan trust 2021-1.”

“No. The organization does not have a separate committee that assumes the responsibility for oversight of the audit review or compilation of the financial statements. A separate committee is not necessary because the audit is conducted as part of pheaa's consolidated financial statements, which does have a committee.”