TIAA-CREF Tuition Financing Inc

Item 5 – Fees and Compensation

For all the program management services provided to a Program (including investment advice),
TFI receives from the Program an annualized fee, paid monthly in arrears, and based on the
average daily net assets in the Program. TFI has no set fee schedule – the program management fee
differs from client to client and can vary based on the individual investments within a Program. For
new relationships, program management fees are negotiated with each State prior to entering into a
program management agreement, and in some cases are renegotiated during the term of the
agreement.
The agreed-upon program management fees are included in the management agreement with each
State. In certain instances, TFI may offer investment only services (those in which it does not act as
program manager to the Program). In those instances, a fee will be negotiated with the State or
program manager and can vary and/or be waived at TFI’s discretion. The program management fee
is the only fee that TFI receives for the various services it provides to a Program. Pursuant to the
management agreement with each State, TFI is authorized to send an instruction to the Program’s
qualified custodian to remit the program management fees to TFI, paid from Program assets and
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subject to review of fee invoices by the State.
Prior to receiving payment from a Program’s assets, TFI submits to the State a detailed invoice for
the preceding calendar month. If the State does not object to the amount(s) shown on the invoice
within the period specified in the program management agreement, TFI is authorized to send an
instruction to the Program’s qualified custodian to remit the program management fees to TFI, paid
from Program’s assets. If the State should object to the amount in the invoice, TFI is only authorized
to instruct the custodian to pay the portion of the fee amount that is not in dispute.

Item 7 – Types of Clients

TFI provides investment advice to the State sponsor and/or program managers of Programs. It has
no other investment advisory clients. TFI does not provide advice or services to individual
investors in the Programs.