Overview Overview Structure of SLBS Securitization Benefits of SLBS What is SLBS? SLBS(Student Loan Backed Securities) are beneficiary certificates issued with collateralized student loans, which are originated by financial institutions, such as banks, to eligible undergraduate or graduate students. * As credit guarantees and related works for the student loans have been transferred to the Korea Student Aid Foundation, KHFC no longer issues SLBS. SLBS Operation Principle Financial institutions, such as banks, originate student loans for eligible undergraduate or graduate students, based on the credit guarantees with the Student Loan Guarantee Fund, and transfer the loans to KHFC. KHFC registers the plan & purchase of the student loans and the trust of the loans to FSC, before issuing SLBS with the student loans as underlying assets and selling them to investors in the capital market. For investor protection, FSC discloses detailed account information of student loans registered by KHFC. KHFC pays the proceeds of SLBS sales to the lenders(financial institutions), who use the proceeds as fund for student loans. ※ As such, KHFC works as an intermediary between lenders(financial institutions) and investors of student loans, thereby enabling the surplus fund in the capital market to be used as a funding source for long-term student loans