**LOAN PURCHASE PROGRAMS ELECTRONIC ANNOUNCEMENT** \#**33**

Date: October 22, 2008 (updated November 5, 2008)

To: FFEL Program Community

From: James Manning, Acting Chief Operating Officer

Federal Student Aid

Subject: Agreed Upon Procedures and Statement of Compliance Instructions
for Lenders Participating in the Loan Participation Purchase Program

> In accordance with Section 8(a)(5) of the Master Participation
> Agreement (MPA) the Sponsor shall and shall cause its Servicer(s) to
> provide to the Department of Education a statement of compliance with
> respect to the MPA, together with an Agreed Upon Procedures (AUP)
> letter. On October 17, 2008, the Department's Office of Inspector
> General issued *Agreed Upon Procedures Attestation Engagement Guide*
> that lenders participating in the Loan Participation Purchase Program
> must use for the AUP letter. The *Guide* is located at
> <http://www.ed.gov/about/offices/list/oig/nonfed/sfa.html>.

Included in this memo is a revised certification for the Sponsor and
Servicer Statement of Compliance. We have separated the Statement of
Compliance into two separate statements, a Sponsor Statement of
Compliance and a Servicer Statement of Compliance.

In order to meet the requirement for submission of a statement of
compliance, the AUP package submitted to the Department must include
certifications for the Sponsor and Servicer in the following formats:

# Sponsor Statement of Compliance

> The undersigned, a duly authorized officer of \<*[name
> of]{.underline}* *[Lender\>]{.underline}*, the "Sponsor" under the
> Master Participation Agreement with the Department of Education,
> certifies that:

(a) This statement is delivered pursuant to Section 8(a)(5) of the
    Master Participation Agreement;

(b) A review has been made under my supervision of the activities of the
    Sponsor for the period *[\< the period of the AUP
    engagement\>]{.underline}* to perform its responsibilities under the
    Master Participation Agreement; and

(c) To the best of my knowledge, based on such review, the Sponsor has
    fulfilled all of its obligations under the Master Participation
    Agreement in all material respects through the reporting period.

> Date:
>
> Sponsor: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *[Name of Official]{.underline}*
>
> *[Title of Official]{.underline}*
>
> *[Entity Name]{.underline}*

**Servicer Statement of Compliance**

> The undersigned, a duly authorized officer of \<*[name
> of]{.underline}* *[Servicer\>]{.underline}*, the "Servicer" under a
> Servicing Agreement with \<*[name of]{.underline}*
> *[Lender\>]{.underline}*, the "Sponsor" under a Master Participation
> Agreement with the Department of Education, certifies that:

(a) This statement is delivered pursuant to Section 8(a)(5) of the
    Master Participation Agreement between the Sponsor and the
    Department;

(b) A review has been made under my supervision of the servicing
    activities conducted by the Servicer for the Sponsor for the period
    *[\< the period of the AUP engagement\>]{.underline}* for loans
    subject to the Master Participation Agreement; and

(c) To the best of my knowledge, based on such review, the Servicer has
    fulfilled all of its obligations under the Servicing Agreement and
    the Master Participation Agreement in all material respects through
    the reporting period.

> Date:
>
> Servicer: \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_
>
> *[Name of Official]{.underline}*
>
> *[Title of Official]{.underline}*

*[Entity Name]{.underline}*

For complete and current information on the Loan Purchase Programs
please visit
[www.federalstudentaid.ed.gov//ffelp](http://www.federalstudentaid.ed.gov//ffelp).