FAMILY ELDER CARE LOAN EXPLAINED ANSWERS TO QUESTIONS POSED BY STATE OF MINNESOTA REPRESENTATIVES SUBMITTED MONDAY, MAY 17, 2004

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1 FAMILY ELDER CARE LOAN EXPLAINED ANSWERS TO QUESTIONS POSED BY STATE OF MINNESOTA REPRESENTATIVES SUBMITTED MONDAY, MAY 17, 2004 By: Elias P. Papasavvas Chief Executive Officer ElderLife Financial LLC 1101 Pennsylvania Avenue, Suite 700 Washington, DC (888) I wish to thank you and your staff for your very patient and empathetic processing of the loan for our mother. It made it possible for us to be able to take our time getting through the financially difficult and emotional time of dealing with this part of her life and everything that goes with it. Sincerely... - Letter to ElderLife by an adult child in Virginia, 2004 SUMMARY Simply stated, the Family Elder Care Loan is a student loan turned on its head. The loan pays for the senior s care up front, and the adult children make smaller affordable monthly payments over time in repayment of the amount borrowed to pay for expensive long-term care. The same motivations which drive parents to help their children through college, despite the fact after the age of 18 parents are no longer required to be overseers of their offspring, drive adult children to want to assist their parents. The Family Elder Care Loan helps families privately pay for care as opposed to encouraging a transfer of assets. It is not a competitor to Reverse Mortgages but rather, a complimentary product. It gives families time and finances to make some important and emotionally charged decisions. It is not the entire solution but rather, a part of the solution. Available quickly, with a simple application over the phone and to an entire family (up to five adult children/relatives can join and split the monthly payment due ElderLife at present has loans with as many as four family members on it, on behalf of a senior). The loan is viewed by families in Virginia and Maryland today, as a convenient solution to many of their senior parents long-term care financing challenges. It can be used in the following situations: a. Seniors need care (especially facility-based) but can not sell the home; b. Seniors need care but can not liquidate Certificates of Deposit or other illiquid assets such as valuable life insurance policies; c. Seniors need care but have spent down all assets; d. Seniors have Long-Term Care Insurance but such insurance has up to a 100-Day elimination period which can run into the tens of thousands of dollars; e. Seniors have Long-Term Care Insurance but (in a typical example) the insurance covers just $90/day of the $120/day needed for care. 5/17/2004 Page 1 of 11 Family Elder Care Loan

2 Q-1: How does the plan and program relate to Reverse Mortgages? ANSWER: Reverse mortgages cannot assist a senior with facility-based care such as assisted living or skilled nursing care. This is because to obtain a Reverse Mortgage, the senior is required to be physically living in his/her home. Once the senior moves out of the home and is in need of facilitybased care, the home is sold and the Reverse Mortgage balance is repaid back to the bank. Once the senior needs facility-based care, a Reverse Mortgage is not an option. The Family Elder Care Loan is thus a simple but necessary compliment to Reverse Mortgages. The Family Elder Care Loan can help accomplish for facility-based care, what the Reverse Mortgage can help accomplish for home-based care. With the Family Elder Care Loan the primary borrowers are the senior s adult children (although many times, the senior themselves is on the loan as well). This loan pays for the senior s care up front, while allowing the senior and his/her adult children the benefit of repaying in smaller, affordable monthly payments over time and which fit into the family s budget, what was borrowed to pay for their mom or dad s care. For every $1,000 borrowed, the monthly repayment is roughly $ Many families whose seniors have spent down all their savings/assets in private-pay care, are using the Family Elder Care Loan in Virginia and Maryland today (Year 2004) to keep their parent(s) from being moved to a Medicaid Funded Nursing home. They would rather pay out of their own pocket to keep mom/dad in the facility of their choice, receiving the care of their choice, than have the state pay for care but dictate where and how such care is to be given to their parents. Today, in states where the Family Elder Care Loan is not yet available, families are forced to have their parent moved to a Medicaid-Funded bed in a nursing home not of their choice. Or caregivers (they have told us on record) are forced to quit their jobs, move mom/dad into their own home and become full time caregivers. Some families whose seniors have homes, however, are also presently utilizing the Family Elder Care Loan in Virginia and Maryland to pay for their parents care. They plan to sell mom/dad s home at some future date in order to pay off this loan they took out on their parents behalf. This use, in essence, provides for the same accomplishment for facility-based care, that a reverse-mortgage can provide for home-based care, namely, the home ultimately is liquidated to pay off each of these two types of loans, but the loan, before the home was liquidated, enabled the family to afford to pay for their loved one s care privately at the time care was needed, care they chose on their own volition. When people are liable, and they make decisions on their own volition, they are more prone to making cost-effective, prudent decisions. When someone else is there to pay on their behalf (regardless the item or service), it is in human nature not to care as closely. Helping families pay for care through loans they obtain on their own, thus encourages citizens to be prudent and thoughtful in keeping care costs as low as possible for them...a philosophy similar to what drove the Federal Government s creation of the student-loan to assist families tackle the costs of a college education on their own (See P.L , Legislative History, Pages 2463 (lower two paragraphs); Page 2464; Pages for benefits as well as concerns to the development of the Student Loan program which is most analogous to the Family Elder Care Loan). 5/17/2004 Page 2 of 11 Family Elder Care Loan

3 Q-2: Please expand upon slide 31? Q-3: What is the interest rate, terms, length and default? ANSWER: Slide 31 and your questions regarding the terms of the Family Elder Care Loan go together. A. Factors behind the pricing of the Family Elder Care Loan: Adult children of a senior in need of long-term care call to request a Family Elder Care Loan, after deciding what care their loved one needs and, if it is not skilled nursing care, realize they must/ought to, pay for it privately. The adult children typically apply for an Unsecured loan. This means it is made available to qualifying families without any asset serving as a guarantee. It is made available quickly: a 15 minute phone application typically is sufficient. A decision is made that same day. Up to five children can come together to help mom and dad. And up to $50,000 is made available per approved applicant (not family thus, two children can apply separately and, in theory, be approved for $50,000 each, making a total of $100,000 available for care) within a few days. It is to be drawn down as needed each month (typically, families in Virginia and Maryland draw down $1,000 to $3,000 a month) with funds presently wired directly to the assisted living facility in which the senior is residing. If a family defaults, there is nothing to recover, whereas with a Reverse Mortgage, or other loans such as a Home Equity loan, or Mortgage, if a family defaults, the bank repossesses the house. B. Interest Rate -- variable As a result, interest rates for these loans, should they remain unsubsidized and completely privately issued, must account for this issue if the loan is to remain viable and available. Interest rates are thus higher than mortgage rates but lower than credit card rates and can range from as low as 4.00% points over Prime, to 7.00% over Prime. Cash advance fees, may also be levied in some cases (see Ex. 4, pg. 11). To minimize bank interest-rate risk, the loan today carries a variable interest rate tied to the Prime rate, although nothing prohibits the issuer of this loan from dictating a fixed, rather than variable, interest rate. As of 5/13/04 the Family Elder Care Loans are issued at an effective APR of roughly 11.00%. 30-Year Fixed Mortgages, in contrast, are at 6.05%. Credit card rates, in contrast, can be as high as 19.98%+. C. Terms, Length, and Default The adult children/senior (the applicants) are approved for a certain maximum amount they can use for elder care. Today that maximum is $50, If individual adult children want to apply separately, and they are strong enough credit applicants, they can each qualify for the maximum of $50,000. Thus, if there are two adult children, in the most unusual example, they can have at their disposal $100,000 to pay for their senior parent s long-term care. 5/17/2004 Page 3 of 11 Family Elder Care Loan

4 1) While they are approved for a certain maximum amount (such as $50,000 as an example), they can only draw down what they need each month (typically $1,000 to $3,000 a month/at a time) to pay for each month s care. This requirement is flexible and can be tweaked accordingly. 2) For every $1,000 borrowed, the family s monthly payment is roughly $ Thus if a family borrowed $5,000 the monthly payment is $100 until the balance is paid back. If a family borrowed $20,000, the monthly payment is $400. And so on. Please see Appendix A for a schedule of payments, interest expense to the family and principal balance paid down. This answers your question regarding slide 16 which was a much more simplified version of monthly payments on the loan amount borrowed. 3) Up to five adult children/grandchildren can join on the loan and share the monthly payment. This helps make the cost so much more affordable and helps the adult daughter share the burden! 4) Family Elder Care Loans today have been issued to, or been applied for by: a. A family where the: senior parent, son, daughter-in-law, and granddaughter all joined and are splitting the monthly payment; b. Son-in-law only; c. Daughter-in-law and son; d. Brother, sister, senior parent; e. Granddaughter only 5) The monthly amount is wired directly to the long-term care provider/facility to ensure the loan moneys are being used for the intended purpose, namely, the care of one s senior loved one. Just as student loan moneys are made payable directly to universities. This requirement is preferred to remain as is, and not flexible. 6) Depending on the loan, need, and situation, the family can have up to seven or eight years to pay back the loan. 7) There are no early repayment penalties. 8) There are no application fees. 9) Expected defaults are no more than 8.00% of the outstanding loan principal issued. 10) The Family Elder Care Loan Program is too new for statistically reliable default data. The 8% is a serious, educated estimate based upon an evaluation of similar loans performance. 5/17/2004 Page 4 of 11 Family Elder Care Loan

5 Q-4: How do you explain the interest in the program given most elderly persons attitudes about not wanting to be a burden on their families? ANSWER: You are indeed correct: Most seniors do not want to be a burden on their families. However, when seniors can no longer completely care for themselves, adult children frequently find themselves intervening and assisting, despite their senior parents reservations. This is evidenced in the facts stated by Jane Vujovich in her presentation to the state of Minnesota on May 7, 2004 (please refer to slides 6, 7, 8, 10, 11, 12, 13, 14, 15 in Ms. Vujovich s presentation). An adult daughter in Virginia recently sent ElderLife a letter along with a check paying off the the outstanding balance on her Family Elder Care Loan. Her comments answer this question: I wish to thank you and your staff for your very patient and empathetic processing of the loan for our mother. It made it possible for us to be able to take our time getting through the financially difficult and emotional time of dealing with this part of her life and everything that goes with it...sincerely... Therefore, knowing that despite their parents reservations related to being a burden to their adult children, these adult children are forced to look after their parents anyway, the question now becomes: How do we help the adult children manage this difficult time, both from a care as well as financial perspective? The reasons why families would want to use the program are literally in the dozens. Some are qualitative. Some are quantitative. A few are listed below: a. Senior using a reverse mortgage moved to facility-based care and the house sale proceeds were all used to pay off the reverse mortgage balance. Senior s family did not want parent in a nursing home for it was not necessary; b. Senior had no assets left, spent down everything he/she had. Family wanted private-pay care options which Medicaid was not legally able to pay for; c. Senior has Certificates of Deposit, other illiquid assets, which if liquidated early, would incur severe financial penalties; d. Senior has life-insurance the benefits of which can not be realized until after death. A viatical settlement is not an option as it typically pays 20% - 40% of the policy s value. The interest on the Family Elder Care Loan is typically much less, than what it would cost a family to realize cash on their loved one s insurance policy through a viatical settlement. i. Example: $50,000 life insurance policy, Viatical settlement pays family $20,000; family loses $30,000. 5/17/2004 Page 5 of 11 Family Elder Care Loan

6 ii. Example: $50,000 life insurance policy; Family Elder Care Loan interest expense for two years when senior has passed away and full $50,000 insurance policy is paid to beneficiaries: Roughly $4,800. e. Senior had long-term care insurance which covered $90 of the $120 day needed to pay for care. Family needed additional $900/month to pay for care. f. Senior had long-term care insurance with a 100-day elimination period. This 100 days (for Alzheimer s care) was going to cost the family $17,500 which it could not pay up front. i. $350 is the monthly payment on that amount, ($20 for every $1,000 borrowed) or... ii. $116, split three ways (by two brothers and the spouse of the senior in need of dementia care). iii. A $17,500 elimination period cost has been reduced to $116 monthly payment. This family was borderline and ultimately not approved by ElderLife...result to the state of Maryland: Family moved senior into a nursing home and Medicaid was now paying for the cost, when it did not need to. Thus, concluding that a Reverse Mortgage is the option, is akin to concluding everyone likes to buy a yellow corvette. Saying that everyone ought to be persuaded into signing up for long-term care insurance is akin to saying everyone will sign up for college savings plans. Not everyone likes a 3-year car loan. There are 3-year, 4-year, 5-year, and 7-year car loans. Just as there are roughly half a dozen different types of student loans, our long-term care system needs a small variety of different loan options, if we are to appeal to a wide enough citizen population. The Family Elder Care Loan is simply another option families would like to have at the table. This Multiple Option/Solution approach is challenging, it is more difficult. Yet it is, philosophically speaking, the approach needed. Reverse Mortgages, Long-Term Care Insurance, are part of the mosaic. The Family Elder Care Loan could be another. Multiple options ensure wider acceptance. 5/17/2004 Page 6 of 11 Family Elder Care Loan

7 Q-5: What is the transition when a person dies? What is the relationship to the estate? ANSWER If a senior has already spent down, has no assets left, and has passed away, the adult children continue to make payments on the Family Elder Care Loan until it is paid back in full. Since the adult children are signatories/guarantors to the loan, and that is made clear/discussed at the time they sign for the loan, they can take up to 5 years to pay it back. There are no early repayment penalties. If a senor has a home, when they have passed away the family sells the home and can use the home s proceeds to pay back in full, the outstanding balance on the Family Elder Care Loan. The Family Elder Care Loan is a debt/liability of the senior s estate, if the senior is one of the signatories to the loan. Therefore, if there are any assets in the estate, the Trustee of the Estate would liquidate the necessary amount of assets to pay off the loan. If there is still an amount to be paid, the adult children would be liable for the balance if they guaranteed the loan on behalf of their senior parent, as is typically the case with this loan. Q-6: What is the relationship with Medicaid Recovery Laws? ANSWER ElderLife believes precedent exists for the answer to this question in the instance when a senior has a reverse mortgage outstanding and he/she is about to move into a skilled nursing community for which Medicaid would pay for the care. In the above instance, is the Reverse Mortgage paid off? Or does Medicaid require the reverse mortgage not be paid off until the senior has passed away, Medicaid recovered its costs first, and then whatever cash is left if any, from the sale of the home, then goes to the bank that made the reverse mortgage available in the first place? It is ElderLife s belief that if this is what happens, bankers would not issue reverse mortgages. Thus, ElderLife believes that today, in this instance, the home is sold, the reverse mortgage is paid off to the bank, and whatever cash is left is used to pay for care until it is spent entirely. At that time, Medicaid would then take over the payment for the seniors long-term care costs. The reverse mortgage has therefore postponed the use of Medicaid until the last possible moment. The Family Elder Care Loan can provide a similar service to the state, especially for families whose senior has spent down all his/her assets, as it encourages families to utilize their private funds for long-term care to the maximum time period possible. 5/17/2004 Page 7 of 11 Family Elder Care Loan

8 ElderLife Financial LLC PAGE 8 May 7, 2004 "Family Elder Care Loan" Presentation to State of Minnesota SLIDE 16, 22, and 26 more accurately explained SLIDE 16 Month Cumulative Anna's Payment (Minimum starts at $100) Interest Principal Remaining Outstanding Principal Balance on Cumulative 1 $ 2,500 $ 2,500 $ 100 $ 23 $ 77 $ 2,423 2 $ 2,500 $ 5,000 $ 100 $ 45 $ 55 $ 4,868 3 $ 2,500 $ 7,500 $ 150 $ 68 $ 82 $ 7,286 4 $ 2,500 $ 10,000 $ 200 $ 90 $ 110 $ 9,676 5 $ 2,500 $ 12,500 $ 250 $ 113 $ 137 $ 12,039 6 $ 2,500 $ 15,000 $ 300 $ 136 $ 164 $ 14,375 7 $ 2,500 $ 17,500 $ 350 $ 158 $ 192 $ 16,683 8 $ 2,500 $ 20,000 $ 400 $ 181 $ 219 $ 18,964 9 $ 2,500 $ 22,500 $ 450 $ 203 $ 247 $ 21, $ 2,500 $ 25,000 $ 500 $ 226 $ 274 $ 23, $ 2,500 $ 27,500 $ 550 $ 249 $ 301 $ 25, $ 2,500 $ 30,000 $ 600 $ 271 $ 329 $ 27,813 TOTALS $ 30,000 $ 30,000 $ 3,950 $ 1,763 $ 2,187 $ 27,813 * Assumes unsecured personal loan (no collateral such as a home securing in event of default) ** Interest Rate of 11% *** No Cash Advance Fees (in Virginia and Maryland, families are charged 5% Cash Advance Fees only on the amount requested each month, and only if such moneys are advanced to the care provider. In Missouri, Kansas and Tennessee at present, families borrow at 8.99% with no Cash Advance Fees).

9 PAGE 9 SLIDE 22 Month Cumulative Joyce & Andy's Combined Payment (Minimum starts at $100) Interest Principal Remaining Outstanding Principal Balance on Cumulative 1 $ 1,000 $ 1,000 $ 100 $ 7 $ 93 $ $ 1,000 $ 2,000 $ 100 $ 15 $ 85 $ 1,822 3 $ 1,000 $ 3,000 $ 100 $ 22 $ 78 $ 2,744 4 $ 1,000 $ 4,000 $ 100 $ 30 $ 70 $ 3,674 5 $ 1,000 $ 5,000 $ 100 $ 37 $ 63 $ 4,611 6 $ 1,000 $ 6,000 $ 120 $ 44 $ 76 $ 5,535 7 $ 1,000 $ 7,000 $ 140 $ 52 $ 88 $ 6,447 8 $ 1,000 $ 8,000 $ 160 $ 59 $ 101 $ 7,346 9 $ 1,000 $ 9,000 $ 180 $ 67 $ 113 $ 8, $ 1,000 $ 10,000 $ 200 $ 74 $ 126 $ 9, $ 1,000 $ 11,000 $ 220 $ 81 $ 139 $ 9, $ 1,000 $ 12,000 $ 240 $ 89 $ 151 $ 10, $ 1,000 $ 13,000 $ 260 $ 96 $ 164 $ 11, $ 1,000 $ 14,000 $ 280 $ 104 $ 176 $ 12, $ 1,000 $ 15,000 $ 300 $ 111 $ 189 $ 13, $ 1,000 $ 16,000 $ 320 $ 118 $ 202 $ 14, $ 1,000 $ 17,000 $ 340 $ 126 $ 214 $ 14, $ 1,000 $ 18,000 $ 360 $ 133 $ 227 $ 15, $ 1,000 $ 19,000 $ 380 $ 141 $ 239 $ 16, $ 1,000 $ 20,000 $ 400 $ 148 $ 252 $ 17, $ 1,000 $ 21,000 $ 420 $ 155 $ 265 $ 17, $ 1,000 $ 22,000 $ 440 $ 163 $ 277 $ 18, $ 1,000 $ 23,000 $ 460 $ 170 $ 290 $ 19, $ 1,000 $ 24,000 $ 480 $ 178 $ 302 $ 20,019 TOTALS $ 24,000 $ 24,000 $ 6,200 $ 2,219 $ 3,981 $ 20,019 Family's monthly payment when no longer drawing down/needing the loan, based on an additional 5 year payback: ($435.27) Split by the two children, they each only pay: $217.63/m ElderLife anticipates families will find a way to pay off the loan within 2 or more years after they are no longer using the loan. * Assumes unsecured personal loan (no collateral such as a home securing in event of default) ** Interest Rate of 11% *** No Cash Advance Fees (in Virginia and Maryland, families are charged 5% Cash Advance Fees only on the amount requested each month, and only if such moneys are advanced to the care provider. In Missouri, Kansas and Tennessee at present, families borrow at 8.99% with no Cash Advance Fees).

10 PAGE 10 SLIDE 26 Month Cumulative Janet's Payment (Minimum starts at $100) Interest Principal Remaining Outstanding Principal Balance on Cumulative 1 $ 800 $ 800 $ 100 $ 7 $ 93 $ $ 800 $ 1,600 $ 100 $ 14 $ 86 $ 1,422 3 $ 800 $ 2,400 $ 100 $ 22 $ 78 $ 2,143 4 $ 800 $ 3,200 $ 100 $ 29 $ 71 $ 2,872 5 $ 800 $ 4,000 $ 100 $ 36 $ 64 $ 3,608 6 $ 800 $ 4,800 $ 100 $ 43 $ 57 $ 4,352 7 $ 800 $ 5,600 $ 112 $ 51 $ 61 $ 5,091 8 $ 800 $ 6,400 $ 128 $ 58 $ 70 $ 5,820 9 $ 800 $ 7,200 $ 144 $ 65 $ 79 $ 6, $ 800 $ 8,000 $ 160 $ 72 $ 88 $ 7, $ 800 $ 8,800 $ 176 $ 80 $ 96 $ 7, $ 800 $ 9,600 $ 192 $ 87 $ 105 $ 8,652 TOTALS $ 9,600 $ 9,600 $ 1,512 $ 564 $ 948 $ 8,652 Janet''s monthly payment when no longer drawing down/needing the loan, based on an additional 5 year payback: ($188.12) ElderLife anticipates families will find a way to pay off the loan within 2 or more years after they are no longer using the loan. * Assumes unsecured personal loan (no collateral such as a home securing in event of default) ** Interest Rate of 11% *** No Cash Advance Fees (in Virginia and Maryland, families are charged 5% Cash Advance Fees only on the amount requested each month, and only if such moneys are advanced to the care provider. In Missouri, Kansas and Tennessee at present, families borrow at 8.99% with no Cash Advance Fees).

11 ElderLife Financial LLC PAGE 11 May 7, 2004 "Family Elder Care Loan" Presentation to State of Minnesota Ex. 4, Cash Adv. Fee Month Cash Advance Fee (5%) Cumulative Joyce & Andy's Combined Payment (Minimum starts at $100) Interest Principal Remaining Outstanding Principal Balance on Cumulative 1 $ 1,500 $ 75 $ 1,575 $ 100 $ 12 $ 88 $ 1,487 2 $ 1,500 $ 75 $ 3,150 $ 100 $ 23 $ 77 $ 2,985 3 $ 1,500 $ 75 $ 4,725 $ 100 $ 35 $ 65 $ 4,495 4 $ 1,500 $ 75 $ 6,300 $ 126 $ 47 $ 79 $ 5,991 5 $ 1,500 $ 75 $ 7,875 $ 158 $ 58 $ 99 $ 7,466 6 $ 1,500 $ 75 $ 9,450 $ 189 $ 70 $ 119 $ 8,922 7 $ 1,500 $ 75 $ 11,025 $ 221 $ 82 $ 139 $ 10,358 8 $ 1,500 $ 75 $ 12,600 $ 252 $ 93 $ 159 $ 11,774 9 $ 1,500 $ 75 $ 14,175 $ 284 $ 105 $ 179 $ 13, $ 1,500 $ 75 $ 15,750 $ 315 $ 117 $ 198 $ 14, $ 1,500 $ 75 $ 17,325 $ 347 $ 128 $ 218 $ 15, $ 1,500 $ 75 $ 18,900 $ 378 $ 140 $ 238 $ 17, $ 1,500 $ 75 $ 20,475 $ 410 $ 151 $ 258 $ 18, $ 1,500 $ 75 $ 22,050 $ 441 $ 163 $ 278 $ 19, $ 1,500 $ 75 $ 23,625 $ 473 $ 175 $ 298 $ 21, $ 1,500 $ 75 $ 25,200 $ 504 $ 186 $ 318 $ 22, $ 1,500 $ 75 $ 26,775 $ 536 $ 198 $ 337 $ 23, $ 1,500 $ 75 $ 28,350 $ 567 $ 210 $ 357 $ 24, $ 1,500 $ 75 $ 29,925 $ 599 $ 221 $ 377 $ 26, $ 1,500 $ 75 $ 31,500 $ 630 $ 233 $ 397 $ 27, $ 1,500 $ 75 $ 33,075 $ 662 $ 245 $ 417 $ 28, $ 1,500 $ 75 $ 34,650 $ 693 $ 256 $ 437 $ 29, $ 1,500 $ 75 $ 36,225 $ 725 $ 268 $ 457 $ 30, $ 1,500 $ 75 $ 37,800 $ 756 $ 280 $ 476 $ 31, $ 1,500 $ 75 $ 39,375 $ 788 $ 291 $ 496 $ 32, $ 1,500 $ 75 $ 40,950 $ 819 $ 303 $ 516 $ 33, $ 1,500 $ 75 $ 42,525 $ 851 $ 315 $ 536 $ 34, $ 1,500 $ 75 $ 44,100 $ 882 $ 326 $ 556 $ 35, $ 1,500 $ 75 $ 45,675 $ 914 $ 338 $ 576 $ 36, $ 1,500 $ 75 $ 47,250 $ 945 $ 350 $ 595 $ 37,909 TOTALS $ 45,000 $ 2,250 $ 47,250 $ 14,759 $ 5,418 $ 9,341 $ 37,909 Family's monthly payment when no longer drawing down/needing the loan, based on an additional 5 year payback: ($824.24) Split by the three children, they each only pay: $274.75/m ElderLife anticipates families will find a way to pay off the loan within 2 or more years after they are no longer using the loan. * Assumes unsecured personal loan (no collateral such as a home securing in event of default) ** Interest Rate of 9% *** No Cash Advance Fees (in Virginia and Maryland, families are charged 5% Cash Advance Fees only on the amount requested each month, and only if such moneys are advanced to the care provider. In Missouri, Kansas and Tennessee at present, families borrow at 8.99% with no Cash Advance Fees).

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