FFEL Loan Purchase Participation Program

1. FFEL Loan PurchaseParticipation Program Operational Closeout Webinar June 3, 2009

2. Presenters William Blot Chief Financial Office Federal Student Aid U.S. Department of Education Margaret Ayanian Business Operations Federal Student Aid U.S. Department of Education Patricia Trubia Program Compliance Federal Student Aid U.S. Department of Education

3. Introduction Target Audience: Personnel at FFEL lenders, guaranty agencies, and custodians who administer the Department�s 2008-2009 Loan Purchase programs.

4. Introduction (Cont.) Webinar Objectives: Review program termination procedures and related cut-off dates defined in the Master Participation Agreement (MPA) and the Master Loan Sale Agreement (MLSA). Review timeline for final sales (puts).

5. Agenda Deadline to execute MPA Deadline for current MPA holders to execute MLSA Cut-off to sell Participation Interests (PI) Notification Requirement Final Puts Loan Eligibility Timeline Guidelines Final Redemptions Termination Post-termination compliance AUPs/audits Questions

6. Deadline to Execute Legal Agreements MPA The Department will not execute an Adoption Agreement to enter into a Participation Agreement with any sponsor after July 1, 2009. To execute this agreement, it is prudent to submit the MPA package as soon as possible, but no later than 7 business days in advance of the cut-off (i.e., June 22, 2009), in case the Department requires additional information or changes to submitted documents.

7. Deadline for Agreements (Cont.) MLSA In order to exercise the put option, the sponsor (together with its Eligible Lender Trustee, if applicable) must have an executed MLSA on or before July 1, 2009. To execute this agreement, it is prudent to submit the MLSA package as soon as possible, but no later than 7 business days in advance of the cut-off (i.e., June 22, 2009), in case the Department requires additional information or changes to submitted documents. The deadline to execute an MLSA has already lapsed for lenders not in an MPA.

8. General Cut-off Date to Sell PI Sponsors without an MLSA may only sell participation interests through the date of termination (i.e., July 1, 2009). Sponsor s with an MLSA must generally exercise the option to sell participation interests (i.e., to submit funding requests) by August 1, 2009. Participation Interests sold (i.e., participation funding requests paid) follow the standard funding request process as defined in EA#53.

9. Exceptions to General Cut-off Date Sponsors may sell participation interests after August 1, 2009 only if the loans meet the following conditions, as defined in Section 1 of the MPA: 1st disbursement on the loan was made by 7/1/09. 1st disbursement was participated by 8/1/09. the final disbursement will occur no later than 9/30/09. this final disbursement is participated no later than 30 days after the date of final disbursement, but no later than 9/30/09. the loan must be put to the Department and the sponsor must notify the Department of an intent to sell [put] this loan.

10. Notification to Closeout Participation All sponsors shall notify the Department as soon as possible with respect to their plans through the Loan.Participation@ed.gov mailbox to indicate whether they will sell their loans and/or redeem their participation interests, when they will do so, and in what amounts. Sponsors must provide notification no later than August 14, 2009

11. Email Notification Template (draft)