**LOAN PURCHASE PROGRAMS ELECTRONIC ANNOUNCEMENT \# 27**

Date: September 12, 2008 (Updated November 3, 2008)

To: FFEL Program Community

From: Larry Warder, Acting Chief Operating Officer

Federal Student Aid

Subject: Loan Purchase Commitment Program Loan Transfer/Conversion File

In Electronic Announcement #23, posted on August 22, 2008, we provided
information on how a lender executes a Master Loan Sale Agreement (MLSA)
with the Department under the Loan Purchase Commitment Program. That
announcement also presented the format and submission instructions for
the required "45-Day Notice of Intent to Sell Loans" under the MLSA. In
Electronic Announcement #26, posted on September 9, 2008, we provided
formats of, and submission information for, the MLSA "Bill of Sale" and
supporting documents.

This Electronic Announcement provides information on the "Loan
Transfer/Conversion File" that is to be used a FFEL lender/holder (the
Seller) when transmitting loan data to the Department's servicer for a
loan purchase under the MLSA. We are also providing [the file layout, as
an
attachment](http://federalstudentaid.ed.gov/ffelp/library/EA27TransferFile_Layout_Version_2008_10_29conv.doc)
(updated November 3, 2008).

Thank you for your continued support of the FFEL Loan Purchase Programs.

Attachment

**Federal Family Education Loan Program**

**Loan Purchase Program Under a Master Loan Sale Agreement**

**[Loan Purchase Commitment Program]{.smallcaps}**

**[Loan Transfer/Conversion File Layout Submission
Instructions]{.smallcaps}**

**[November 3, 2008]{.smallcaps}**

This document provides information about the Loan Transfer/Conversion
File that will be submitted by a Seller and sent to the Department's
servicer for loans scheduled to be sold to the Department pursuant to a
Master Loan Sale Agreement (MLSA) under the Loan Purchase Commitment
Program. [The attachment to this
document](http://federalstudentaid.ed.gov/ffelp/library/EA27TransferFile_Layout_Version_2008_10_29conv.doc)
(updated November 3, 2008) includes the full record layout for the Loan
Transfer/Conversion File. The Seller (or the Seller's loan servicer)
will create a Loan Transfer/Conversion File, using this format, and
forward it to the Department's servicer using the process described
below.

Only loans that were identified by the Seller when it created the
information for the projected Purchase Date's "45-Day Notice of Intent
to Sell Loans" may be included on the Loan Transfer/Conversion File for
that Purchase Date. Of course, the Loan Transfer/Conversion File should
not include any of those previously identified loans that are no longer
Eligible Loans or that have been cancelled or otherwise paid in full.
Finally, the information provided for each loan must be current as of
the creation of the Loan Transfer/Conversion File.

A lender may not submit a Loan Transfer/Conversion File until it has --

-   Executed a Master Loan Sales Agreement with the Department,
    consistent with the information provided in Electronic Announcement
    #23;

-   Submitted a properly executed "45-Day Notice of Intent to Sell
    Loans" consistent with the information provided in Electronic
    Announcement #23;

-   Successfully completed intersystem testing of the Loan
    Transfer/Conversion File between the Seller's servicer and the
    Department's servicer. This testing will take place during the
    45-Day notification period and is only necessary for a Seller's
    initial sale.

**[Loan Transfer/Conversion File Layout Submission]{.smallcaps}**

**[Page 2]{.smallcaps}**

Assuming that the intersystem testing of the Loan Transfer/Conversion
File is successful, approximately nine business days prior to the
projected Purchase Date, the Seller will submit its Loan
Transfer/Conversion File to the Department's servicer. The Department's
servicer will edit the file for loan eligibility and data integrity and
will work with the Seller's servicer to resolve any exceptions
identified in that process.

On the sixth business day prior to the purchase date, the Department's
servicer will create and forward to the Seller's servicer a pre-sale
Loan Schedule, with totals and loan level detail. The Seller will review
this Schedule, confirm its totals, and use it to prepare the required
Bill of Sale and related documents, as discussed in Electronic
Announcement #26.

[The attachment to this
document](http://federalstudentaid.ed.gov/ffelp/library/EA27TransferFile_Layout_Version_2008_10_29conv.dochttp://federalstudentaid.ed.gov/ffelp/library/EA27TransferFile_Layout_Version_2008_10_14conv.doc)
(updated November 3, 2008) includes the full record layout for the Loan
Purchase Commitment Program's Transfer/Conversion File. The Seller (or
the Seller's loan servicer) will create a Loan Transfer/Conversion File,
using this format, and forward it to the Department's servicer using a
file transfer process to be determined by the Department's servicer and
the Seller's servicer, following submission of the Seller's first 45-Day
Notice.

If you have any questions on the information provided in this document
or if you wish to begin discussions on creating the Loan
Transfer/Conversion File please send an email to <ED.Servicer@ed.gov>.