**Attachment 1: Computational Logic for AMF/LPIF**

**AMF Computational Logic:**

AMF is paid on the sum of net guarantees (Amount of Guaranty minus Total
Cancellations) for loans in good standing at the end of the current
fiscal year for all FFEL loan types. NSLDS uses the following logic to
determine which loans should be extracted from the system and the
corresponding net guaranty included in the calculation. The following
steps are used in the selection process:

1)  Loans that have had the Outstanding Principal Balance updated within
    the last 4 ½ years are selected for further evaluation. The 4-½
    years is calculated from 7/1/CCYY prior to the current calculation
    date (typically 45 days after the end of the fiscal year). For the
    FY 2001 AMF calculation the cutoff date was 7/1/1997. Loans that did
    not have an Outstanding Principal Balance Date on or after 7/1/1997
    were not included in the AMF Calculation.

2)  The current status for loans selected in step 1 must be in IA, IM,
    IG, ID, DA, FB or RP (good standing) as of the end of the fiscal
    year.

3)  For those loans in good status, NSLDS checks to see that there is no
    claim payment date prior to the end of the fiscal year that is later
    than the loan status effective date for the corresponding status in
    Step 2. If a claim payment has been made at a date later than the
    loan status date as of the fiscal year end and there is no
    repurchase date prior to the fiscal year end yet later than the
    claim payment date, then the loan is not selected.

4)  For loans with a current loan status (other than good standing --
    Step 2) as of the fiscal year end NSLDS looks checks for a current
    repurchase date as of the fiscal year end that is later than the
    current claim payment date as of the fiscal year end. If a
    repurchase date does exist, the loan is selected even though the
    loan status, as of the fiscal year end, is not one of good standing.

5)  The sum of the guarantee for all loans extracted as a result of
    steps 1 through 4 are included in the AMF calculation.

**Note:** Steps 3 and 4 are used to identify loans that are potentially
in good standing and an agency has not yet updated the loan status.
These steps can also identify loans that appear to be in good standing
according to the loan status code yet data exists within NSLDS to
suggest otherwise. All the data used for steps 1 through 4, determine
whether or not the loan was in good standing at the end of the fiscal
year.

**LPIF Computational Logic:**

LPIF is paid on SF, SU, and PL loan types' quarterly disbursement
activity. If there is an increase in the total amount disbursed on the
loan from the prior reporting period then the LPIF payment will be
increased accordingly. If there is a decrease in the total amount
disbursed on the loan from the prior reporting period then the LPIF
payment will be decreased accordingly. NSLDS uses the following logic to
determine which loans should be extracted from the system and the
corresponding disbursement activity used in the calculation. The
following steps are used in the extraction process:

1)  Loan's with guaranty date on or after 10/01/1999 and on or before
    MM/DD/CCYY^\*^ are evaluated further for extraction.

2)  Loans where the guarantor has responsibility for the loan on the
    date of disbursement are extracted.

3)  Is the most recent disbursement date after MM/DD/CCYY^\*^?

-   If yes, extract loan---Use sum of disbursement amounts made on or
    before MM/DD/CCYY^\*^ for LPIF calculation.

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-   If no, extract loan---Use cumulative disbursement amount on the
    latest disbursement record for LPIF calculation.

4)  NSLDS compares the total disbursement activity on the loan at the
    end of the current period to the total disbursement activity on the
    loan at the end of the prior period. The positive or negative
    difference is used in the LPIF calculation.

    -   If total disbursement activity on the loan as of the current
        period end is \$2000 and the total disbursement activity as of
        the prior period end was \$700, then \$1300 of activity will be
        used in the current period LPIF calculation.

    -   If total disbursement activity on the loan as of the current
        period end is \$1500 and the total disbursement activity as of
        the prior period end was \$2000, then -\$700 will be used in the
        current period LPIF calculation.

**Note:** Disbursements from prior periods reported to NSLDS in the
current period will be included in the calculation as long as the
guaranty date of the loan is on or after 10/1/1999. NSLDS maintains a
"snapshot" of cumulative disbursement activity on all loans by guarantor
from the prior period to use in the current period
calculation/comparison process.

^\*^MM/DD/CCYY is adjusted based on the year and quarter. For example,
for LPIF calculated for FY 2002:

  ------------------------------ ----------------------------------------
  **If the quarter is...**       **The MM/DD/CCYY is...**

  1                              12/31/2001

  2                              03/31/2002

  3                              06/30/2002

  4                              09/30/2002
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