**LOAN PURCHASE PROGRAMS ELECTRONIC ANNOUNCEMENT #9**

Date: July 30, 2008

To: FFEL Program Community

From: Larry Warder, Acting Chief Operating Officer, Federal Student Aid

Subject: Notices of Intent to Participate in Loan Purchase Commitment
Program and Loan Participation Purchase Program -- Reminder

As July 31 approaches, we want to remind FFEL Program participants that
any lender (including a school lender) that wishes to participate in
either or both of the Loan Purchase Programs (the Loan Purchase
Commitment Program and the Loan Participation Purchase Program) must
file a "Notice of Intent to Participate" (NOI). As explained in the July
1, 2008 *Federal* *Register* Notice that announced the programs
(modified on July 17, 2008), any lender that may choose to participate
in either program, or that may transfer loans it originates to other
lenders that may want to participate in either program, must submit an
NOI.

We stress first that an originating lender must timely file its NOI in
order for the loans it originated to be eligible for either program. The
Department will not purchase a loan, or a participation interest in a
loan, that was first disbursed prior to the date on which the Department
received the NOI from the [originating]{.underline} lender. The only
exception is that the Department will purchase loans, or interests in
loans, first disbursed on or after May 1, 2008 if the
[originating]{.underline} lender's NOI is received on or before July 31,
2008. If the NOI of the originating lender is received after July 31,
2008, the Department will purchase only those loans, or interests in
those loans, for which the first disbursement was made on or after the
date the Department received the NOI from that originating lender.

We also stress that a secondary market or other subsequent holder must
also timely file a Notice of Intent to Participate in order to sell to
the Department loans, or interests in loans, it acquires. For such a
holder, both the date on which it submitted its own NOI and the date on
which the originating lender submitted its NOI control which loans the
holder may include in the Loan Purchase programs. First, the Department
will only purchase a loan, or an interest in a loan, from a subsequent
holder if the loan was acquired by that holder on or after the date the
Department received that holder's NOI. In addition, the Department will
purchase such loans only if the loan was first disbursed either after
the date on which the NOI of the [originating]{.underline} lender was
received, or, if the originator's NOI is received on or before July 31,
2008, on or after May 1, 2008.

Therefore, we encourage all FFEL lenders and entities that purchase FFEL
loans from originating lenders to file their Notices of Intent to
Participate in a timely manner. As we have noted earlier, while the
submission of a Notice of Intent to Participate does not bind the lender
or holder to actually sell loans or to place loans in a participation
interest facility, it does reserve those choices for both the
originating lender and for any subsequent holder.

Included as an attachment to this memo is the copy of the Notice of
Intent to Participate that should be completed, signed, dated and sent
as a PDF attachment to an e-mail message addressed to
ffel.agreementprocess@ed.gov. The e-mail message subject line should
read "Submission of Notice of Intent to Participate." Of course,
entities that have already submitted Notices of Intent to Participate
need not re-submit.

For questions concerning the submission and receipt of the email please
call (202) 377-4401.

**NOTICE OF INTENT TO PARTICIPATE**

> \[\_\_\_\_\_\_\_\_\_\_, 200\_\]

U.S. Department of Education

Washington, D.C.

By: E-mail: ffel.agreementprocess@ed.gov

**Re: Loan Purchase Commitment Program and/or Loan Participation
Purchase**

**Program for Eligible FFELP Loans**

Ladies and Gentlemen:

The undersigned, an eligible Federal Family Education Loan Program
(FFELP) lender under Section 435(d)(1) of the Higher Education Act of
1965, as amended (HEA), eligible lender

trustee, or holder of beneficial interests in FFELP Loans
("Undersigned"), hereby notifies the

United States Department of Education that it intends to participate in
one or both of the

following FFEL Loan Purchase programs for the 2008-2009 academic year.
The Loan Purchase programs are authorized under Section 459A of the HEA
as amended by the Ensuring Continued

Access to Student Loans Act of 2008 (Pub. L. No. 110-227), and described
in the Notice of

Terms and Conditions of Purchase of Loans under the Ensuring Continued
Access to Student

Loans Act of 2008 (Register Notice) published in the Federal Register,
Vol. 73, No. 127, July 1,

2008\. Signifying intent to participate in one or both of the programs
offered does not require

actual participation in such programs.

CHECK THE APPLICABLE BOX(ES): □ Loan Purchase Commitment Program

> □ Loan Participation Purchase Program and the Loan Purchase Commitment
> Program

By signifying its intent to participate in such program(s), the
Undersigned hereby certifies and

agrees that:

1\. If the Undersigned participates in either of the programs, it will
continue to originate or

acquire FFELP loans made to students and parents.

2\. If the Undersigned participates in the Loan Participation Purchase
Program, it will sell,

from time to time, participation interests in FFELP loans to the
Department of Education

with an aggregate unpaid principal balance of not less than \$50,000,000
in loans either

held by such eligible lender or aggregated with other FFELP loans held
by one or more

eligible lenders. Note that there is no minimum for the Loan Purchase
Commitment

Program.

3\. The Undersigned acknowledges that it shall not be permitted to sell
FFELP loans or

> participation interests therein to the Department of Education with
> respect to which the
>
> first disbursement was made prior to the date on which the Department
> of Education
>
> receives this Notice of Intent to Participate, except that, if the
> Department of Education
>
> receives this Notice of Intent to Participate by July 31, 2008 the
> Undersigned shall be
>
> permitted to sell to the Department of Education FFELP loans or
> participation interests
>
> therein, as applicable, where the first disbursement of the loan(s)
> was made on or after
>
> May 1, 2008.

For the purpose of item 3 above, the Department of Education will return
to the Undersigned, via

electronic mail (e-mail), information indicating the date the Notice of
Intent to Participate was

received by the Department of Education.

The Department of Education has provided that it will accept signed
copies of this Notice of

Intent sent as a PDF attachment via e-mail at the address below.

The Undersigned is aware that it must refer to the Federal Register
Notice and to the agreements

referred to therein for a complete description of the terms and
conditions under which the

Department of Education will administer the Loan Purchase Programs. The
Undersigned also is

aware that in order to participate in the Loan Purchase programs it must
execute a Master

Agreement for the respective program. If the Undersigned is a beneficial
holder of FFELP loans,

include on this form the LID(s) under which it operates. If the
Undersigned, as an eligible lender

trustee, files this Notice on behalf of its beneficial holders of FFELP
loans, include the name and

LID of each of those beneficial holders.

This Notice of Intent to Participate is hereby executed and dated as of
the date first listed above.

By executing this Notice of Intent, the Undersigned now possesses an
option to participate in the

Loan Purchase Program or Programs indicated by the Undersigned above.

The Undersigned asks that the Department of Education please direct all
inquiries and

correspondence relating to these programs to:

> \[UNDERSIGNED NAME AND LENDER ID NUMBER (LID)\]
>
> \[ELIGIBLE LENDER TRUSTEE NAME OR BENEFICIAL
>
> HOLDER NAME, IF ANY AND LIDS\]
>
> \[STREET ADDRESS\]
>
> \[CITY\], \[STATE\] \[ZIP\]
>
> Attention of: \[NAME\], \[TITLE\]
>
> By Phone - \[XXX-XXX-XXXX\]
>
> By Fax -- \[XXX-XXX-XXXX\]
>
> By E-mail -- \[email address\]
>
> \[NAME OF ENTITY\]
>
> By:\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> Name:
>
> Title:

The completed, signed, and dated Notice of Intent to Participate should
be sent as a PDF

attachment to an e-mail message addressed to
ffel.agreementprocess@ed.gov. The e-mail

message subject line should read "Submission of Notice of Intent to
Participate."

For questions concerning the submission and receipt of the email please
call (202) 377-4401.