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ACCOUNTABILITY FOR THE DEPARTMENT OF

EDUCATION’S OVERSIGHT OF STUDENT LOANS

AND THE READING FIRST PROGRAM

HEARING

BEFORE THE

COMMITTEE ON 

EDUCATION AND LABOR

U.S. HOUSE OF REPRESENTATIVES

ONE HUNDRED TENTH CONGRESS

FIRST SESSION

HEARING HELD IN WASHINGTON, DC, MAY 10, 2007

Serial No. 110–32

Printed for the use of the Committee on Education and Labor

(

Available on the Internet: 

http://www.gpoaccess.gov/congress/house/education/index.html 

(II)

COMMITTEE ON EDUCATION AND LABOR 

GEORGE MILLER, California, Chairman

Dale E. Kildee, Michigan, Vice Chairman 

Donald M. Payne, New Jersey 

Robert E. Andrews, New Jersey 

Robert C. ‘‘Bobby’’ Scott, Virginia 

Lynn C. Woolsey, California 

Rube ́n Hinojosa, Texas 

Carolyn McCarthy, New York 

John F. Tierney, Massachusetts 

Dennis J. Kucinich, Ohio 

David Wu, Oregon 

Rush D. Holt, New Jersey 

Susan A. Davis, California 

Danny K. Davis, Illinois 

Rau ́l M. Grijalva, Arizona 

Timothy H. Bishop, New York 

Linda T. Sa ́nchez, California 

John P. Sarbanes, Maryland 

Joe Sestak, Pennsylvania 

David Loebsack, Iowa 

Mazie Hirono, Hawaii 

Jason Altmire, Pennsylvania 

John A. Yarmuth, Kentucky 

Phil Hare, Illinois 

Yvette D. Clarke, New York 

Joe Courtney, Connecticut 

Carol Shea-Porter, New Hampshire 

Howard P. ‘‘Buck’’ McKeon, California, 

Ranking Minority Member 

Thomas E. Petri, Wisconsin 

Peter Hoekstra, Michigan 

Michael N. Castle, Delaware 

Mark E. Souder, Indiana 

Vernon J. Ehlers, Michigan 

Judy Biggert, Illinois 

Todd Russell Platts, Pennsylvania 

Ric Keller, Florida 

Joe Wilson, South Carolina 

John Kline, Minnesota 

Cathy McMorris Rodgers, Washington 

Kenny Marchant, Texas 

Tom Price, Georgia 

Luis G. Fortun ̃ o, Puerto Rico 

Charles W. Boustany, Jr., Louisiana 

Virginia Foxx, North Carolina 

John R. ‘‘Randy’’ Kuhl, Jr., New York 

Rob Bishop, Utah 

David Davis, Tennessee 

Timothy Walberg, Michigan 

Dean Heller, Nevada

Mark Zuckerman, Staff Director 

Vic Klatt, Minority Staff Director 

(III)

C O N T E N T S 

Page

Hearing held on May 10, 2007 ............................................................................... 1

Statement of Members: 

McKeon, Hon. Howard P. ‘‘Buck,’’ Senior Republican Member, Committee 

on Education and Labor ............................................................................... 6

Prepared statement of ............................................................................... 7

Miller, Hon. George, Chairman, Committee on Education and Labor ......... 2

Prepared statement of ............................................................................... 4

Additional submissions for the record: 

Letter from Norman C. Francis, president, Xavier University, 

submitted by Hon. Charlie Melancon, a Representative in Congress from the State of Louisiana ................................................. 56

Questions for the record, May 16, 2007, submitted to Secretary 

Spellings .......................................................................................... 59

Responses to May 16, 2007, questions ............................................. 63

Questions for the record, May 23, 2007, submitted to Secretary 

Spellings .......................................................................................... 75

Responses to May 23, 2007, questions ............................................. 76

Letter from Thomas C. Healy, vice president for government 

relations, Indiana University ........................................................ 79

Statement of Witnesses: 

Spellings, Hon. Margaret, Secretary, U.S. Department of Education .......... 9

Prepared statement of ............................................................................... 12

Additional submissions for the record: 

Higher Education Timeline ............................................................... 80

Delivery Process/Student View—FY 2006 ........................................ 81

Letters to Puerto Rico Secretary of Education, dated March 7 

and 21, 2007 .................................................................................... 82

2006 9.5 SAP Summary ..................................................................... 86

2005 9.5 SAP Summary ..................................................................... 88

2004 9.5 SAP Summary ..................................................................... 90

2003 9.5 SAP Summary ..................................................................... 92

2002 9.5 SAP Summary ..................................................................... 94

2001 9.5 SAP Summary ..................................................................... 96

FY 2006 SAP Summary for Both Taxable and Tax Exempt by 

Lender ............................................................................................. 99

(1)

ACCOUNTABILITY FOR THE DEPARTMENT OF

EDUCATION’S OVERSIGHT OF STUDENT 

LOANS AND THE READING FIRST PROGRAM 

Thursday, May 10, 2007

U.S. House of Representatives 

Committee on Education and Labor 

Washington, DC

The committee met, pursuant to call, at 10:31 a.m., in Room 

2175, Rayburn House Office Building, Hon. George Miller [chairman of the committee] presiding. 

Present: Representatives Miller, Kildee, Payne, Andrews, 

Hinojosa, McCarthy, Tierney, Kucinich, Wu, Holt, Davis of California, Davis of Illinois, Bishop of New York, Sarbanes, Sestak, 

Loebsack, Altmire, Yarmuth, Hare, Shea-Porter, McKeon, Petri, 

Castle, Ehlers, Biggert, Platts, Keller, Wilson, Kline, Marchant, 

Fortuno, Foxx, Davis of Tennessee, and Walberg. 

Staff present: Aaron Albright, Press Secretary; Tylease Alli, 

Hearing Clerk; Jeff Appel, GAO Detailee; Alice Cain, Senior Education Policy Advisor (K-12); Sarah Dyson, Administrative Assistant, Oversight; Denise Forte, Director of Education Policy; 

Gabriella Gomez, Senior Education Policy Advisor (Higher Education); Ryan Holden, Senior Investigator, Oversight; Lloyd 

Horwich, Policy Advisor for Subcommittee on Early Childhood, Elementary and Secretary Education; Lamont Ivey, Staff Assistant, 

Education; Thomas Kiley, Communications Director; Ann-Frances 

Lambert, Administrative Assistant to Director of Education Policy; 

Ricardo Martinez, Policy Advisor for Subcommittee on Higher Education, Lifelong Learning and Competitiveness; Stephanie Moore, 

General Counsel; Alex Nock, Deputy Staff Director; Joe Novotny, 

Chief Clerk; Rachel Racusen, Deputy Communications Director; 

Julie Radocchia, Education Policy Advisor; Michael Zola, Chief Investigative Counsel, Oversight; Mark Zuckerman, Staff Director; 

James Bergeron, Minority Deputy Director of Education and 

Human Services Policy; Robert Borden, Minority General Counsel; 

Kathryn Bruns, Minority Legislative Assistant; Steve Forde, Minority Communications Director; Taylor Hansen, Minority Legislative Assistant; Amy Raaf Jones, Minority Professional Staff Member; Victor Klatt, Minority Staff Director; Lindsey Mask, Minority 

Director of Outreach; Linda Stevens, Minority Chief Clerk/Assistant to the General Counsel; and Brad Thomas, Minority Professional Staff Member. 

2

Chairman MILLER [presiding]. Good morning. A quorum being 

present, the hearing of the Committee on Education and Labor on, 

‘‘Accountability in the Department of Education’s Oversight of the 

Student Loans and the Reading First Program,’’ will come to order. 

I want to welcome everyone to today’s hearing on, ‘‘Accountability in the Department of Education’s Oversight of Student 

Loans and the Reading First Program.’’

I would like to thank Secretary Spellings for taking time to testify before us today, and we have a lot of ground to cover. 

For several months now, investigations by this committee and 

elsewhere at the state and federal level have produced a stream of 

troubling revelations about unethical practices in the student loan 

industry. 

We now know that for the last several years it has been a common practice for lenders to offer gifts and other inducements to college financial aid officers and others in exchange for high loan volume. 

At a $74,000 cruise paid for by JP Morgan Chase in 2005, student financial aid officers dined on five spice quail and filet 

mignon. In one particularly egregious example of an apparent quidpro-quo, Indiana University essentially accepted a $3 million line 

of credit from Sallie Mae in 2004, and later dropped out of the government’s Direct Loan Program. 

We know that lenders have inappropriately accessed the National Student Loan Database in order to find private information 

about borrowers for marketing purposes. We know that lenders 

abused federal law to reap questionable windfalls, costing taxpayers hundreds of millions of dollars in overpayments. We know 

that lenders designed marketing materials to be deliberately misleading by making them look like official government correspondence in order to trick borrowers into responding. 

All of these practices come at the expense of students and their 

families. Lenders have spent millions of dollars to violate the law, 

and their illegal actions have cost families untold millions at a time 

of soaring college costs, and this is an outrage. These practices also 

carry a high cost for the federal taxpayers at a time of tight budgets and huge budget deficits, which is another outrage. 

The federal student loan programs must be managed in the best 

interests of students, parents and taxpayers. Doing so is the responsibility of the Department of Education. I agree with New 

York Attorney General Andrew Cuomo that testified before this 

committee last month when he said that the department had been 

‘‘asleep at the switch’’ when it comes to overseeing the federal student loan programs. In fact, Mr. Cuomo might have been too polite. 

Although I applaud the proposal of the administration’s 2008 

budget to reduce some of the excessive subsidies made to lenders—

subsidies that essentially finance bad lender behavior—the administration has otherwise failed to provide meaningful oversight on 

the student loan industry. 

In 2001, the Bush administration scrapped plans to issue a ‘‘Dear 

Colleague’’ letter to schools and lenders instructing them to end the 

practice of trading gifts and other inducements for student loan 

volume. 

3

In 2003, the administration ignored an alert memorandum from 

the department’s inspector general urging similar action. 

In January 2007, the administration allowed nearly 300 million 

taxpayer dollars to walk out the door because of an antiquated 

loophole that allows lenders to bill the government at a higher rate 

of interest. The department knew about this ‘‘9.5 percent loophole’’ 

for years but failed to close it. 

Over the last several months, New York Attorney General 

Cuomo has led the way in the investigations into the student loan 

industry, and many other state attorneys general have begun their 

own investigations. But the Department of Education has been conspicuously missing from action. 

What makes all of these even more troubling is that many Education Department officials who have worked directly on the student loan programs appear, according to press accounts, to have 

their own conflicts of interest. 

Some have owned stock in student lending companies. Others are 

part of a revolving door between the industry and the department. 

And I am pleased that the department’s inspector general has 

agreed to my request to investigate these conflicts of interest. We 

need to know whether these conflicts help explain the department’s 

incredible oversight failures. 

The work of the Office of the Inspector General brings us to the 

second topic of today’s hearing: Reading First, a program that was 

rife with conflicts of interest that the inspector general exposed in 

2006. 

In a committee hearing last month, we heard testimony from 

three former members of a committee hand-picked by the Education Department to review products that educators use to assess 

children’s progress in learning to read. 

All three of those former committee members—Roland Good, Ed 

Kame’enui and Deborah Simmons—profited either directly or indirectly from the sale of a specific reading product that states were 

inappropriately pressured to use if they wanted to get federal grant 

money. 

We learned from the education inspector general about his referrals to the Justice Department regarding potential criminal misconduct by Reading First officials. 

We also heard how the former director of Reading First, Chris 

Doherty, had improperly bullied states into using specific reading 

products. Mr. Doherty’s wife worked for an organization linked to 

those products, a fact that Mr. Doherty repeatedly failed to disclose 

on financial forms he filed while an employee of the Education Department. 

Here again we have to ask why the White House and the Department of Education allowed this mismanagement to continue unchecked. Mr. Doherty, in his testimony, provided one troubling explanation: that he was just following the department’s orders. Mr. 

Doherty testified, ‘‘I respected the chain of command at the Department of Education, faithfully executing orders from my superiors, 

which I never had reason to question, and keeping superiors informed about the program.’’

When I look at the whole body of evidence that has been 

amassed about both the student loan and Reading First programs, 

4

it is clear that, at a minimum, that the Education Department’s 

oversight failures have been monumental. 

But many people, including me, are wondering if that is the end 

of the story. Was this simply laziness? Was this incompetence? Was 

it a deliberate decision to look the other way while these things 

happened? Or was it a failing more sinister than that? These are 

the questions that we are hoping to bring to answer today. 

By an overwhelming bipartisan vote of 414 to three, the House 

yesterday approved legislation, sponsored by Mr. McKeon and myself, the Student Loan Sunshine Act, to clean up the student loan 

industry. We are considering proposals to eliminate conflicts of interest from every program within the Department of Education, including Reading First. 

I am hopeful that the testimony we will receive and the discussion we will have today will assist us in these efforts. We must 

make sure that problems like the ones I have described do not repeat themselves. Students, children, parents, educators and taxpayers deserve to know that the government is working on their 

behalf, not for the financial benefit of a handful of well-connected 

individuals and organizations. 

And at this time, I would like to recognize the gentleman from 

California, the senior Republican of the committee, Mr. McKeon.

Prepared Statement of Hon. George Miller, Chairman, Committee on 

Education and Labor 

Good morning. Welcome to today’s hearing on ‘‘Accountability for the Department 

of Education’s Oversight of Student Loans and the Reading First Program.’’

I’d like to thank Secretary Spellings for taking the time to testify before us today. 

We have a lot of ground to cover. 

For several months now, investigations by this committee and elsewhere at the 

state and federal level have produced a stream of troubling revelations about unethical practices in the student loan industry. 

We now know that, in the last several years, it has been common practice for 

lenders to offer gifts and other inducements to college financial aid officers in exchange for higher loan volume. At a $74,000 cruise paid for by JP Morgan Chase in 2005, student financial aid 

officers dined on five spice quail and filet mignon. 

In one particularly egregious example of an apparent quid-pro-quo, Indiana Uni- versity essentially accepted a $3 million line of credit from Sallie Mae in 2004, and 

later dropped out of the government’s Direct Loan program. 

We know that lenders have inappropriately accessed the National Student Loan 

Database in order to find private information about borrowers for marketing purposes. 

We know that lenders abused federal law to reap questionable windfalls, costing 

taxpayers hundreds of millions of dollars in overpayments. 

All of these practices come at the expense of students and their families. 

Lenders have spent millions of dollars to violate the law, and their illegal actions 

have cost families untold millions. At a time of soaring college costs, this is an outrage. 

These practices also carry a high cost for federal taxpayers. At a time of tight 

budgets and huge budget deficits, this too is an outrage. 

The federal student loan programs must be managed in the best interests of students, parents, and taxpayers. Doing so is the responsibility of the U.S. Department 

of Education. 

I agree with New York Attorney General Andrew Cuomo, who testified before this 

committee last month and said that the Department has been ’asleep at the switch’ 

when it comes to overseeing the federal student loan programs. 

In fact, Mr. Cuomo might have been too polite. 

Although I applaud the proposal in the administration’s 2008 budget to reduce 

some of the excessive subsidies made to lenders—subsidies that essentially finance 

bad lender behavior—the administration has otherwise failed to provide meaningful 

oversight of the student loan industry. 

5

In 2001, the Bush administration scrapped plans to issue a Dear Colleague letter 

to schools and lenders instructing them to end the practice of trading gifts and other 

inducements for student loan volume. 

In 2003, the administration ignored an alert memorandum from the Department’s 

Inspector General urging similar action. 

In January 2007, the administration allowed nearly 300 million taxpayer dollars 

to walk out the door because of an antiquated loophole that allows lenders to bill 

the government at a higher rate of interest. The Department knew about this ‘‘9.5 

percent loophole’’ for years—but failed to close it. 

Over the last several months, New York Attorney General Cuomo has led the way 

with investigations into the student loan industry, and many other state attorneys 

general have begun their own investigations. But the U.S. Department of Education 

has been conspicuously missing in action. 

What makes all of this even more troubling is that many Education Department 

officials who have worked directly on the student loan programs appear, according 

to press accounts, to have their own conflicts of interest. 

Some have owned stock in student lending companies. Others are part of a revolving door between the industry and the Department. I am pleased that the Department’s Inspector General has agreed to my request to investigate these conflicts of 

interest. We need to know whether these conflicts help explain the Department’s incredible oversight failures. 

The work of the Office of the Inspector General brings us to the second topic of 

today’s hearing: Reading First, a program that has been rife with conflicts of interest that the Inspector General exposed in September 2006. 

In a committee hearing last month, we heard testimony from three former members of a committee hand-picked by the Education Department to review products 

that educators use to assess children’s progress in learning to read. 

All three of those former committee members—Roland Good, Ed Kame’enui, and 

Deborah Simmons—profited either directly or indirectly from the sale of a specific 

reading product that states were inappropriately pressured to use if they wanted 

to get federal grant money. 

We learned from the Education Inspector General about his referrals to the Department of Justice regarding potentially criminal misconduct by Reading First officials. 

We also heard how the former Director of Reading First, Chris Doherty, had improperly bullied states into using specific reading products. Mr. Doherty’s wife 

worked for an organization linked to those products, a fact that Mr. Doherty repeatedly failed to disclose on financial forms he filed while an employee of the Education 

Department. 

Here again, we have to ask why the White House and the Department of Education allowed this mismanagement to continue unchecked. Mr. Doherty, in his testimony, provided one troubling explanation: that he was just following the Department’s orders. 

Mr. Doherty testified: ‘‘I respected the chain of command at the Department of 

Education, faithfully executing orders from superiors, which I never had reason to 

question, and keeping superiors informed about the program.’’

When I look at the whole body of evidence that has been amassed about both the 

student loan and Reading First programs, it is clear that—at a minimum—the Education Department’s oversight failures have been monumental. 

But many people, including me, are wondering if that’s the end of the story. Was 

this simply laziness? Was this incompetence? Was it a deliberate decision to look 

the other way while these things happened? Or was it a failing more sinister than 

that? These are the questions that I’m hoping we will begin to answer today. 

By an overwhelming vote of 414-3, the House yesterday approved legislation—the 

Student Loan Sunshine Act—to clean up the student loan industry. We are considering proposals to eliminate conflicts of interest from every program within the Department of Education, including Reading First. 

I am hopeful that the testimony we will receive and the discussion we will have 

today will assist us in these efforts. 

We must make sure that problems like the ones I have described do not repeat 

themselves. 

Students, children, parents, educators, and taxpayers deserve to know that the 

government is working on their behalf—not for the financial benefit of a handful 

of well-connected individuals and organizations. 

I now recognize the gentleman from California, the senior Republican of the Committee, Mr. McKeon. 

Thank you. 

6

Mr. MCKEON. Thank you, Mr. Chairman, for convening today’s 

hearing. 

And, Madam Secretary, thank you for joining us, and welcome 

back to our committee. I look forward to your testimony and our 

discussion about the steps the department and Congress are taking 

to reaffirm trust in our nation’s financial aid system as well as in 

Reading First. 

Oversight is a healthy congressional practice. It has led to some 

key reforms within the Washington bureaucracy, and I look forward to continuing as a partner in such an effort. 

Similarly, oversight within the Department of Education is certainly nothing new. During the late 1990s, as many of us on this 

panel remember, the department failed a series of internal audits. 

An estimated $450 million was lost to waste and fraud. Money intended for South Dakota schools, for example, was diverted to buy 

real estate, and a massive theft ring started by a department employee led to federal charges against 19 people. 

After years of work to clean up this mess, in 2003, the Bush administration announced the department’s first independent clean 

audit in years, and they have followed suit each year since. More 

recently, in 2005, our federal student aid programs were removed 

from the Government Accountability Office’s high risk designation 

list after 15 years. 

My colleagues, this turnaround didn’t happen by accident, and I 

am confident the department will continue to be a partner in addressing the challenges before us. 

As we continue with our oversight of the department, I am compelled to express a few concerns to help lay the groundwork for this 

hearing. 

First, I am often puzzled and, frankly, concerned by claims that 

men and women with a deep understanding of a particular policy 

area should have no role to play in an agency that deals each day 

with matters of that very same area of policy. 

Chairman Miller, you and I have a deep interest and, as a result, 

a deep background with regard to education and labor issues. That 

is why we are sitting in these seats after all. To argue that our 

background and depth of knowledge taints us and should bar us 

from legislating on these matters is not sensible. 

The same holds true, in my opinion, with regard to our federal 

agencies. This was the case in the Clinton administration when socalled industry insiders staffed the Department of Education. Nothing was wrong with it then; likewise, nothing is wrong with it now. 

Secondly, and I noted this on the floor yesterday when we considered the bipartisan Student Loan Sunshine Act, we need to keep 

in mind the fact that the vast majority of the men and women involved in our nation’s financial aid and Reading First programs are 

hardworking, well-intentioned public servants. If we broadly condemn then, including the vast majority who do exceptional work, 

we do so at our own peril and risk undermining public confidence 

in student aid programs and a Reading First Program that, by all 

accounts, are working well for millions of American students and 

their families. 

And, finally, I believe oversight should lead to action, not merely 

headlines. Overzealous oversight all too often triggers overly broad 

7

requests for information that can distract an agency from serving 

the needs of those who depend on it. In this instance, that is student, parents and taxpayers. 

Similarly, we must be cautious not to engage in an endless partisan fishing expedition that after awhile runs the risk of becoming 

a witch hunt instead of a serious pursuit of changes to public policy. 

With regard to serious changes to public policy, Mr. Chairman, 

I believe our bipartisan vote yesterday on the Student Loan Sunshine Act has gotten us off to a good start. Through that bill, we 

have taken key steps to ensure our financial aid system continues 

to serve the needs of the students who depend on it for a chance 

at a college education. 

Madam Secretary, I was pleased to read in your prepared testimony that your Student Loan Task Force has made a number of 

recommendations that will now be incorporated into the regulatory 

process. 

Going beyond these recommendations, I am hopeful that soon 

you will reopen the National Student Loan Data System so student 

lenders again will be able to fully participate in this system and 

provide the best possible service to families counting on a student 

loan to attend college this coming fall and graduates planning to 

consolidate their loan prior to July 1 when variable loan interest 

rates are expected to increase on existing loans. 

I think this is very important that this be done quickly, because 

we are at a crucial time for these prospective students and graduates. 

On Reading First, Madam Secretary, I applaud the immediate 

administrative changes you have implemented in light of the inspector general’s report. 

Mr. Chairman, as you know, Mr. Castle and I introduced legislation several weeks ago to codify the inspector general’s recommendations. We all are in agreement that Reading First is a 

successful and worthy program. Now we must take the initiative 

to change the law accordingly to ensure past instances of mismanagement never repeat themselves again. 

Mr. Castle’s and my bill will do that, and I urge its speedy passage in committee. 

Once again, Madam Secretary, I thank you for joining us today. 

I look forward to your testimony and our discussion. 

And, Chairman Miller, I look forward to a productive hearing 

that will point us in the direction of real issues, real action on the 

two important issues before us today.

Prepared Statement of Hon. Howard P. ‘‘Buck’’ McKeon, Senior Republican 

Member, Committee on Education and Labor 

Thank you, Mr. Chairman, for convening today’s hearing. And Madam Secretary, 

I thank you for joining us and welcome you back to our Committee. I look forward 

to your testimony and our discussion about the steps the Department and Congress 

are taking to reaffirm trust in our nation’s financial aid system, as well as Reading 

First. 

Oversight is a healthy congressional practice. It has led to some key reforms within the Washington bureaucracy, and I look forward to continuing as a partner in 

such an effort. 

Similarly, oversight within the Department of Education is certainly nothing new. 

During the late 1990s, as many of us on this panel remember, the Department 

8

failed a series of internal audits. An estimated $450 million was lost to waste and 

fraud. Money intended for South Dakota schools, for example, was diverted to buy 

real estate and new cars; more than $1 million was lost to false overtime payments; 

and a massive theft ring, started by a Department employee, led to federal charges 

against 19 people. After years of work to clean up this mess, in 2003, the Bush Administration announced the Department’s first independent, clean audit in years. 

And they have followed suit each year since. More recently, in 2005, our federal student aid programs were removed from the Government Accountability Office’s HighRisk designation list after 15 years. My colleagues, this turnaround didn’t happen 

by accident, and I am confident the Department will continue to be a partner in 

addressing the challenges before us. 

As we continue with our oversight of the Department, I am compelled to express 

a few concerns to help lay the groundwork for this hearing. First, I’m often puzzled 

and, frankly, concerned by claims that men and women with a deep understanding 

of a particular policy area have no role to play in an agency that deals each day 

with matters of that very same area of policy. Chairman Miller, you and I have a 

deep interest—and, as a result—a deep background with regard to education and 

labor issues. That’s why we’re sitting in these seats, after all. To argue that our 

background and depth of knowledge taints us and should bar us from legislating on 

these matters is not sensible. The same holds true, in my opinion, with regard to 

our federal agencies. This was the case in the Clinton Administration, when socalled ‘‘industry insiders’’ staffed the Department of Education, and nothing was 

wrong with it then. Likewise, nothing is wrong with it now. 

Secondly—and I noted this on the floor yesterday when we considered the bipartisan Student Loan Sunshine Act—we need to keep in mind the fact that the vast 

majority of the men and women involved in our nation’s financial aid and Reading 

First programs are hard-working, well-intentioned public servants. If we broadly 

condemn them, including the vast majority who do exceptional work, we do so at 

our own peril and risk undermining public confidence in student aid programs and 

a Reading First program that—by all accounts—are working well for millions of 

American students and their families. 

And finally, I believe oversight should lead to action, not merely headlines. Overzealous oversight all too often triggers overly-broad requests for information that 

can distract an agency from serving the needs of those who depend on it. In this 

instance, that’s students, parents, and taxpayers. Similarly, we must be cautious not 

to engage in an endless, partisan fishing expedition that—after a while—runs the 

risk of becoming a witch hunt instead of a serious pursuit of changes to public policy. 

With regard to serious changes to public policy, Mr. Chairman, I believe our bipartisan vote yesterday on the Student Loan Sunshine Act has gotten us off to a 

great start. Through that bill, we have taken key steps to ensure our financial aid 

system continues to serve the needs of the students who depend on it for a chance 

at a college education. Madam Secretary, I was pleased to read in your prepared 

testimony that your student loan task force has made a number of recommendations 

that will now be incorporated into the regulatory process. Going beyond these recommendations, I am hopeful that soon you will re-open the National Student Loan 

Data System so student lenders again will be able to fully participate in the system 

and provide the best possible service to families counting on a student loan to attend college this coming fall and to graduates planning to consolidate their loans 

prior to July 1st, when variable interest rates are expected to increase for existing 

loans. 

On Reading First, Madam Secretary, I applaud the immediate administrative 

changes you have implemented in light of the Inspector General’s reports. Mr. 

Chairman, as you know, Mr. Castle and I introduced legislation several weeks ago 

to codify the Inspector General’s recommendations. We all are in agreement that 

Reading First is a successful and worthy program. Now, we must take the initiative 

to change the law accordingly to ensure past instances of mismanagement never repeat themselves again. Mr. Castle’s and my bill will do that, and I urge its speedy 

passage in Committee. 

Once again, Madam Secretary, I thank you for joining us today. I look forward 

to your testimony and our discussion. And Chairman Miller, I look forward to a productive hearing that will point us in the direction of real action on the two important issues before us today. 

Chairman MILLER. I thank the gentleman for his statement. 

9

Without objection, all members will have 14 days to submit additional materials or questions for the hearing record. 

Before proceeding to introduce our witness, the secretary, let me 

lay out the process we will follow in this investigative hearing. 

We will begin with a 10-minute statement by Secretary 

Spellings. To ensure that we have a full opportunity to flesh out 

relevant facts for the record, I am exercising my prerogative as 

chair, pursuant to Rule 2(b) to extend the 5-minute rule for myself 

and Mr. McKeon. 

Following Secretary Spelling’s testimony, Mr. McKeon and I will 

each engage in a 20-minute round of questioning, after which other 

members will participate under the 5-minute rule. 

I would also alert the members that I think we are expecting a 

series of votes here, I am told five votes, which may provide a considerable interruption in the hearing rather quickly. 

But, clearly, I believe we will have time, Madam Secretary, for 

your testimony at a pace in which you will be comfortable delivering it. 

Margaret Spellings is the U.S. secretary of education. Prior to 

being appointed to that position in January 2005, Ms. Spellings 

served as President Bush’s assistant for domestic policy where she 

helped develop the No Child Left Behind law and other education 

policies. 

Additionally, she served for 6 years as President Bush’s senior 

education advisor, developing and implementing then Governor 

Bush’s education reforms and policies in the state of Texas. 

And during her stint, certainly, as secretary, she has been very 

helpful to this committee as we have dealt with the implementation of No Child Left Behind. 

And we appreciate that, and we look forward to your testimony. 

And thank you for making this time available. 

STATEMENT OF HON. MARGARET SPELLINGS, SECRETARY, 

U.S. DEPARTMENT OF EDUCATION 

Secretary SPELLINGS. Thank you, Mr. Chairman and members. I 

very much appreciate this opportunity to set the record straight on 

my department’s oversight of college student aid and the Reading 

First Program. 

Federal student aid is crying out for reform. The system is redundant, it is Byzantine and it is broken. In fact, it is often more 

difficult for students to get aid than it is for bad actors to game 

the system. 

For example, throughout the 1990s, millions of dollars meant to 

help families foot the bill for college were subject to waste, fraud 

and abuse. Since President Bush took office, we have worked hard 

to clean up this system. 

Today, the majority of schools and lenders are doing the right 

thing, but when the public’s trust is violated, my department has, 

and will, act. 

For example, since last August, I have been working to address 

urgent issued, like preferred lender lists and inducements through 

the rulemaking process that you set up by law. I invited this committee and its counterpart in the Senate to suggest people to join 

this process. 

10

At that time, Mr. Chairman, you and other members of this committee sent me a letter requesting that I delay further action until 

Congress could act. I appreciate very much the fact that yesterday 

the House of Representatives took an important first step in this 

process, but in the absence of completed congressional action, it has 

been my duty to expedite reform. 

So in December, I convened representatives from student groups, 

institutions and the lending community, as is required to fully represent all stakeholders, and asked them to look at ways to make 

the system more transparent and easier to use for millions of students and families. 

When the committee failed to reach consensus last month, I immediately assembled an internal task force to work on these key 

issues. They reported to me yesterday with recommendations to 

end unethical practices, put students’ needs first and maintain 

trust and integrity throughout the system. 

The task force recommended new plans to inject more choice, 

competition and transparency into federal student aid. These plans 

will ensure every borrower has the right to choose any lender and 

require that if a school has a preferred lender list, it must disclose 

how and why lenders are chosen. It must include a minimum of 

three unaffiliated lenders, and it must not favor some students 

more than others. 

In addition, we have strengthened longstanding guidance on 

what is legal and what is not with regard to inducements. This includes a ban on gifts and steps to limit deceptive marketing by 

lenders. I will work to release draft regulations to be printed in the 

Federal Register by the end of this month. Even if and when a law 

is passed, I will have jumpstarted the regulatory process which 

would ordinarily be just beginning its 18th plus month timeline. 

There is more work ahead, of course, but I can’t do it alone. We 

must work together to change existing law. The opportunity to 

enact critical reform has come and gone since 2003 when the Higher Education Act became eligible for renewal. Students deserve action now. 

But let me be clear: If we limit our efforts to lending practices 

without addressing the interrelated nature of cost, financing, quality and accessibility in higher education, we are only treating the 

symptoms instead of finding the cure. 

We all know that federal student aid has failed to keep up with 

dramatic changes in higher education, like soaring tuition costs 

and a lack of transparency that makes oversight and real consumer 

choice more difficult, let alone the rising demands of our knowledge 

economy that have caused enrollment to nearly triple over the last 

25 years while costs have increased nearly 400 percent in that 

same time period. 

That is why, shortly after becoming secretary 2 years ago, I appointed a commission to make higher education more responsive to 

the needs of students, parents, educators and the business community. That commission found that when it comes to controlling costs 

we, at the federal level, certainly have a role to play. Currently, 

there are 20 federal programs aiding students and more than 200 

federal laws governing higher education—layer upon layer of complexity and inefficiency. 

11

My department oversees federal student loans. Private loans, 

which have lately been the focus of so much attention, are overseen 

by other agencies, like the FTC, the FDIC, the SEC and the Federal Reserve. Therefore, I am convening the chairs of all these relevant agencies to coordinate a government-wide endeavor to end 

student loan abuse no matter where it occurs. 

Mr. Chairman, I invite your committee and your colleagues in 

the Senate to help me lead this effort to restore faith in student 

financial aid broadly. We cannot fix this broken enterprise by cherry-picking a few narrow issues to address. We must peel back the 

layers, increase transparency, streamline the entire system and 

provide much more aid to students, which is exactly what we have 

been doing. 

I have already provided you with written testimony that describes in detail how we have improved management and reduced 

the default outstanding loan portfolio by 40 percent since 2001. 

More recently, I have tightened oversight of our student loan database and sent on-site teams to review the lender relationships of 

the 44 schools highlighted in recent reports. 

In addition, since my commission’s report, we have been acting 

on their recommendations to increase affordability, accessibility 

and accountability in higher ed. We have worked to streamline and 

increase federal aid, strengthening the accrediting process and telling students much earlier who they qualify for aid. 

Earlier this year, President Bush proposed the largest increase 

in federal Pell Grants in 30 years, and I am glad that the Congress 

has taken steps to help accomplish that goal. 

And I hope very much that we can work together in that same 

bipartisan spirit to execute the commission’s remaining recommendations and reauthorize the Higher Education Act this year. 

Mr. Chairman, 5 years ago, with No Child Left Behind, we 

worked across party lines and committed to have every child on 

grade level by 2014. Today, this law is working, shining a spotlight 

on student achievements and building demand for further changes, 

like keeping America’s teenagers from dropping out of school. 

An integral part of that program is the Reading First Program, 

the largest, most effective reading initiative in our nation’s history. 

The latest data shows that Reading First is producing sizable gains 

in fluency and comprehension for nearly 2 million first, second and 

third graders. I am deeply concerned about the report Senator Kennedy released yesterday, and my department is working with the 

inspector general on this matter, as we have done previously. 

Last fall, I put in place new leadership to oversee Reading First 

and issued clear guidance and training in implementation. I have 

sought input from states on how to improve the program and developed a new charter to strengthen peer reviews, and I have directed 

my general counsel to take further steps to prevent conflicts of interest. 

But together we can and must do more. From K-12 to higher 

education, you and I now have an opportunity to enact meaningful 

new policies that make a real difference for students and families, 

as we have done before. 

Both No Child Left Behind and the Higher Education are up for 

renewal again this year. Where these laws need changing, let’s do 

12

it. Where families need our help, let’s provide it. Together, we can 

enact policies that help prepare more students for college and make 

sure they can afford it when they get there. 

Thank you, Mr. Chairman. I would be happy to answer your 

questions. 

[The statement of Secretary Spellings follows:]

Prepared Statement of Hon. Margaret Spellings, Secretary, U.S. 

Department of Education 

Thank you, Mr. Chairman and Members of the Committee. I appreciate this opportunity to set the record straight on my department’s oversight of college student 

aid and the Reading First program. 

We’ve heard a lot lately about alleged unethical practices in the student loan industry. Students and families expect and deserve honest, ethical behavior from our 

government, our universities, and our lenders. 

Annually, ten million students in our country receive Federal financial aid. My 

department is the means by which almost half of them are able to afford college. 

We work with schools and lenders across our country. The vast majority of them 

are doing the right thing for students. 

However, the fact is, federal student aid is crying out for reform. The system is 

redundant, it’s Byzantine, and it has failed to keep up with dramatic changes in 

higher education. In many ways, it’s also a prime target for those looking to game 

the system. 

In the instances when the public’s trust is violated, it’s our responsibility to act—

and that is what we’ve done. 

Federal Student Aid Purposes, Operational Scope and Scale 

The Department of Education’s grant, loan, and work-study programs represent 

the largest source of student aid for postsecondary education in the United States. 

In 2006, these programs provided approximately $77 billion to more than ten million students and their families. 

Federal Student Aid is charged with operational responsibility for oversight and 

administration of all the Department’s Federal student financial assistance programs under Title IV of the Higher Education Act of 1965 (HEA) and, as one of the 

government’s few Performance-Based Organizations, upholds high standards of 

operational efficiency, innovation, and customer care. 

The Higher Education Amendments of 1998 established Federal Student Aid, 

under the direction of the Secretary, as the Federal Government’s first PerformanceBased Organization, with particular emphasis on modernizing the delivery of the 

Federal student assistance programs. The authorizing statute provides that the purposes of the Performance-Based Organization are to: 

• Increase accountability; 

• Improve service to students; 

• Integrate information systems; 

• Implement a common integrated delivery system; 

• Strengthen program integrity; and 

• Reduce costs of administering the programs. 

The Department’s Federal Student Aid office ensures the availability and accessibility of the Free Application for Federal Student Aid (FAFSA) to students and parents and receives and processes FAFSAs for over 14 million aid applicants each 

year. Over the past several years, Federal Student Aid has dramatically transformed the aid application process from a 100 percent paper process to one that is 

now 96 percent web-based. 

The Department’s Federal Student Aid office is one of the largest originator of 

student loans, annually making nearly three million Direct Loans totaling nearly 

$13 billion to almost two million student and parent borrowers. In 2006, it originated over 1.2 million Direct Consolidation Loans totaling more than $19 billion. It 

is responsible for servicing the over $89 billion outstanding loan portfolio of 18 million Direct Loans made to more than seven million borrowers. It is also responsible 

for collection on over $21 billion of defaulted student loans, including Direct Loans 

(DL), Family Federal Education Loans (FFEL), and Perkins Loans. It oversees the 

approximately $450 billion outstanding student loan portfolio, including loans held 

by lenders, guaranty agencies, and schools. It also ensures the delivery of nearly $13 

billion in Federal Pell Grants to over five million undergraduate students each year. 

The Federal Student Aid systems process millions of financial and other transactions annually and its websites receive billions of hits each year. Its customer care 

13

centers annually handle more than 34 million inbound and outbound phone calls. 

And each year it sends more than 41 million communications to aid applicants and 

borrowers. 

State of Affairs in 2001

Despite the critical role that the Department and Federal Student Aid (FSA) 

plays in helping millions of students attend college, when this Administration took 

the helm of the Department in January 2001, we inherited a situation in which both 

were in a state of complete disarray. The Department and Federal Student Aid had 

not received clean audit opinions in years and there was not any expectation of receiving them in the near future. Millions of dollars of grant money could not be accounted for. The Inspector General’s Office, the General Accounting Office, and outside auditors had identified 661 audit recommendations for improving financial 

management, internal controls, operational management, program management, 

and compliance oversight that needed immediate attention. The situation was dire 

and the evidence of mismanagement egregious. 

This Administration immediately committed to cleaning up these programs. Specifically, we committed to: 

• Ensuring the removal of Student Financial Assistance Programs from the GAO 

High Risk List; 

• Obtaining clean financial audit opinions; 

• Putting in place effective systems of internal controls to protect the Department’s assets from waste, fraud, and abuse; 

• Making the systems and processes supporting student aid delivery and management more efficient and less costly; 

• Continuing efforts to reduce student loan default costs; and 

• Making accountability for results the primary operating principle for all Education managers, grantees, and contractors. 

These commitments were ambitious and important, and I’m pleased to report we 

have achieved each and every one of them. 

Prior to the establishment of Federal Student Aid as a Performance-Based Organization, the Federal Student Aid programs were plagued with oversight and management challenges, high default rates, and customers who were not happy with the 

service they received. In 1990, the Government Accountability Office (GAO) found 

the federal student aid programs at high risk for fraud, waste, abuse, and mismanagement. Financial management and internal controls around the programs 

were largely non-existent and unqualified audit opinions were not attainable. In 

1990, student loan cohort default rates had hit an all-time high of 22.4%. Customer 

satisfaction was not even measured. 

It was indeed shocking the amount of hard work necessary to address the clear 

oversight and management issues that landed the federal student aid programs on 

the GAO High Risk list in 1990 and where they remained when this Administration 

arrived on the scene. 

We recognized the inherent challenges in providing billions of dollars of grants 

and loans, through thousands of intermediaries to millions of students; however, we 

chose to aggressively manage the challenge to ensure access to postsecondary education while reducing the vulnerability of student aid programs to fraud, waste, 

error, and mismanagement. To accomplish this goal, in April 2001, this Administration made obtaining clean audit opinions a top management improvement priority. 

The Department established a Management Improvement Team composed of eight 

members of the senior staff of the Education Department who worked exclusively 

on attacking the problems and developed a comprehensive ‘‘Blueprint for Management Excellence’’. In addition, the President’s Management Agenda (PMA), announced in the summer of 2001, included an initiative specifically focused on improving the Department’s financial management and removing the federal student 

aid programs from GAO’s high-risk list. 

The task at hand was daunting and required the Department and Federal Student Aid to: 

• Clearly demonstrate strengthened financial management and internal controls 

over the federal student aid programs and the Department as a whole; 

• Obtain unqualified audit opinions both on Federal Student Aid and the Department’s financial statements; 

• Demonstrate Federal Student Aid was integrating its delivery systems while 

providing high- quality services to students, colleges and universities, and financial 

institutions; 

• Provide assurance and direct evidence that the Department has the systems, 

leadership, and processes in place to continue to maintain the integrity of its finanVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00017 Fmt 6633 Sfmt 6621 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
14

cial management, the major hurdle for the federal student aid programs’ high-risk 

designation; • Maintain a balanced management approach in the federal student aid programs 

that seeks to minimize non- compliance and default rates while still promoting the 

widespread use of the programs; and • Demonstrate the existence of plans, processes, and infrastructure to address 

risk issues identified as key to the success of the federal student aid programs. 

Theresa ‘‘Terri’’ Shaw, appointed as the Chief Operating Officer of Federal Student Aid in September 2002, was charged specifically with the task of ensuring the 

removal of the federal student aid programs from the GAO High Risk list and 

achievement of clean financial audit opinions as her top two priorities. Terri came 

to the Department after twenty-two years of exemplary work in federal student aid 

delivery, information technology, business process reengineering, contract management, and organizational change management. 

Under this Administration, clean financial audit opinions have been achieved for 

the past five consecutive fiscal years beginning with FY 2002. The only prior clean 

financial audit opinion in the history of the Department was in 1997. When GAO 

removed the federal student aid programs from its High Risk list in early 2005, it 

recognized the significant progress of Federal Student Aid and the Department in 

resolving financial integrity and management issues and demonstrating strong commitment and senior-level leadership support for addressing issues and risks. 

In addition, on March 31, 2005, Federal Student Aid achieved ‘‘all green’’ status 

on the President’s Management Agenda (PMA) scorecard for Elimination of Fraud 

and Error in the Student Aid Programs and Deficiencies in Financial Management. 

Federal Student Aid also focused on student loan default prevention and management through default prevention strategies implemented by participants across the 

programs. Since FY 2000, the combined FFEL and Direct Loan FY 2000 cohort default rate has been reduced by nearly 14 percent from 5.9 percent to 5.1 percent 

for FY 2004. Cohort default rates have been reduced from an all-time high of 22.4 

percent for FY 1990. It is expected that when the FY 2005 cohort default rates are 

announced in September 2007 that they will be even lower than the current 5.1 percent. 

At the same time, we also moved to make the financial aid application (FAFSA) 

and the process for filling it out more user-friendly. We went from a process that 

was 100 percent paper to one that is now 96 percent electronic. In fact, electronic 

processing has been implemented in all phases of the financial aid process. This is 

accomplished through a series of secure, user-friendly, and efficient electronic processes that have simplified the financial aid process for students and families. Federal Student Aid’s new Public Service Announcement (PSA) ‘‘Only a Dream’’ was 

ranked in the Top 10% most viewed Nielsen-tracked PSAs in January, Top 5% in 

February and Top 6% in March resulting in reaching an audience of over 160 million. 

The FY 2006 American Customer Satisfaction Index (ACSI) ratings for Federal 

Student Aid’s highest volume products and services- including the electronic 

FAFSA, Common Origination and Disbursement and Direct Loan Servicing, score 

in the ‘‘Excellent’’ and ‘‘Good’’ range. Our products and services score higher than 

the federal government aggregate scores and on par with private sector scores. 

Fair and effective oversight and monitoring of the approximately 6,000 institutions of higher education that participate in the programs is one of Federal Student 

Aid’s core responsibilities, as is its oversight of the nearly 3,500 lenders, guaranty 

agencies, and servicers that participate in the FFEL Program. 

Federal Student Aid’s oversight activities include real-time quality control. Federal Student Aid has built into its systems and processes edits, triggers, risk assessments, and other features that enable it to monitor and correct errors and to provide 

early warnings of potential trouble. For example, our monitoring alerted us to: (1) 

anomalies in access to the National Student Loan Data System (NSLDS); (2) the 

financial condition of the Oregon Student Aid Commission (OSAC) early enough so 

that a seamless closure and transition of OSAC’s guaranty services could occur; and 

(3) the increase in special allowance payments made to loan holders on certain 

FFEL loans made or purchased with tax-exempt funds which led the Administration 

to include a proposal in the President’s FY 2005 Budget that would stop the increase in 9.5% special allowance. 

In addition, Federal Student Aid monitors the school and lending community by 

reviewing required annual compliance audits and financial statements, performing 

on-site program reviews, and analyzing partner-specific data to detect trends and 

areas that could be of concern. 

Federal Student Aid engages in an ongoing process of actively identifying risks 

in the programs. Noncompliance with statutes, regulations, and policies by schools, 

15

lenders, guaranty agencies, and servicers not only places Title IV funds at risk but 

also erodes the public trust in the programs. We partnered with the Department’s 

Office of the Inspector General to establish a joint task force to identify real or potential risks for fraud, waste, abuse, and mismanagement in the programs. Federal 

Student Aid also established an Enterprise Risk Management unit to better coordinate risk monitoring and action plans among our various business units and with 

other Department of Education offices. 

Let me speak specifically about the issues that have received recent attention: 

National Student Loan Data System (NSLDS): 

In 1994, the Department of Education created NSLDS in order to facilitate students’ access to financial aid and loan information. Lenders may have access to the 

National Student Loan Data System (NSLDS) for the purpose of assisting with determining the eligibility of an applicant for federal student aid and the collection 

of federal student loans and grant overpayments. NSLDS information may not be 

used for any other purpose, including the marketing of student loans or other products. In fact, NSLDS does not provide access to email addresses, phone numbers, 

or addresses of borrowers that could be used for marketing purposes. NSLDS information is protected by the Federal Privacy Act, and pursuant to the routine uses 

published in the NSLDS system of records notice the Department discloses to external authorized entities, information such as borrower social security number, date 

of birth, and data regarding Title IV aid received, as well as federal loan amounts, 

outstanding balance, current status of the loan, and grant amounts only for the purposes described above. 

Information accessible to external authorized users of NSLDS is limited to borrower social security number, date of birth, and data regarding Title IV aid received, such as federal loan amounts, outstanding balance, current status of the 

loan, and grant amounts. 

NSLDS does not authorize a user to ‘‘dig through tons of data’’, nor does it authorize the analysis of multiple borrower records for identification of hidden patterns or 

behaviors, nor does it authorize the exploring of transactions, nor does it permit 

database searches for multiple borrowers. These activities are commonly referred to 

as ‘‘data mining’’. NSLDS only allows a user to look up a single borrower at a time 

and only if the user has a relationship with the borrower or the borrower’s specific 

permission to do so, as demonstrated by the borrower’s return of a solicitation which 

contains such an authorization, by other written authorization by the borrower; or 

verbal permission as noted in call records of the lender. The use of automated tools 

to speed up the process of looking up borrower records one entry at a time is prohibited. Federal Student Aid deploys a variety of tools and techniques specifically designed to detect the use of such automated tools. These tools and techniques alert 

us to the possibility that automated tools are being used and automatically suspend 

the access for the user ID. 

A common practice in the consumer credit industry is the purchase of data from 

credit bureaus and other sources for the specific purpose of making an offer of credit 

to an individual, such as credit card offers. Consolidation lenders participating in 

the FFEL program also follow this practice. Once the solicitation offer is made to 

a borrower and permission by the borrower is granted, the lender is authorized to 

access NSLDS to obtain information on the underlying loans that the borrower 

wishes to consolidate. It is the responsibility of the chief officer of each entity to ensure that its authorized users are in compliance with NSLDS access requirements. 

There are 60 million student records in NSLDS representing loans that are both 

active and paid in full. The signature of the chief officer of the organization is also 

required to certify appropriate use of the system by his or her employees. In addition, the signature of the individual authorized by the chief officer of the organization is required for system access and use. With their signature, users confirm their 

understanding of the requirements for system use and agree to use the system in 

accordance with all rules and regulations. There are approximately 29,000 school accounts and 7,500 lender accounts. 

The data residing in NSLDS are confidential and are protected by a series of both 

federally mandated and discretionary security measures, including the Privacy Act 

of 1974. These measures include access management, network and physical security 

policies and procedures such as protective surveillance of recurring threats such as 

virus and mail-ware filters, monitoring of suspicious external traffic, such as attempted denial of service attacks, firewalls, access and usage monitoring and tracking, and routine testing and surveillance using intrusion detection systems. NSLDS 

must annually pass, at a minimum, a FISMA audit, a financial audit or Security 

Certification and Accreditation. Most systems are annually tested by more than one 

16

of these three procedures and all systems must pass every test within any threeyear period. 

Federal Student Aid continuously monitors access to NSLDS to prevent unauthor- ized use and, since 2003, Federal Student Aid has invested over $650,000 in improved system security and monitoring tools and processes to ensure the integrity 

of student information. 

Since 2003, these oversight efforts have resulted in the revocation of over 52,000 

user IDs. The majority of these revocations were due to user inactivity; however, 

261 user IDs were revoked due to suspicious activity. Of these 261 revoked IDs, 246 

user IDs belonged to lenders, loan holders, guaranty agencies and servicers; and 15 

user IDs belonged to schools. 

As a result of the Department’s monitoring of NSLDS usage, we issued a Dear 

Colleague Letter (DCL) in April 2005. This DCL explicitly reiterated to program 

participants that failure to comply with NSLDS usage requirements may result in 

the organization or individual losing access to the system and/or being subject to 

further sanctions. 

Following the release of the DCL, we observed a significant increase in usage by 

lenders, loan holders, servicers, and guaranty agencies. Based on this increase, the 

Department had concerns as to the appropriateness of such access and discussed the 

termination of access by lenders, loan holders, servicers, and guaranty agencies. As 

a result, the Department decided to temporarily suspend access to NSLDS by all 

entities except schools and borrowers—effective April 17, 2007. During this temporary suspension of access, the Department is conducting a comprehensive review 

of the specific uses of NSLDS to determine if there has been unauthorized access 

or use. The Department is consulting with the Inspector General to complete this 

review. As part of my Task Force on Student Loans established on April 24, 2007, 

we are also reviewing all guidance to determine if enhancements are necessary. 

On May 2, 2007, the Department began to notify entities, beginning with guaranty agencies, of the process to restore their access to NSLDS. Access to NSLDS 

will be restored only after the Department has determined that it is appropriate to 

do so based on the analysis of access and usage information for each entity. As such, 

the timing of access restoration will not be the same for all entities. 

This analysis is being conducted in a manner that assures the Department that 

an entity has only accessed and used NSLDS for approved purposes. Additionally, 

restoration of access will be predicated on the receipt and approval by the Department of: (1) a listing that identifies each of the entity’s personnel for whom it wishes 

to have NSLDS web access and the specific authorized use or uses by that person; 

and (2) a certification, signed by the entity’s Chief Executive Officer (CEO) and its 

Department of Education Data Point Administrator (DPA), that affirms that the entity and each of its staff for whom it has requested, or will request, NSLDS access 

is in compliance with all applicable guidance provided by the Department. 

Access by an individual will be permanently terminated if the NSLDS access requirements are violated. Access by an entity will be permanently terminated if there 

are three violations of the NSLDS access requirements within a 12-month period 

by persons associated with that entity. In addition, unauthorized access or use of 

NSLDS may subject users to criminal or civil penalties, including fines and/or imprisonment. 

The Department is also developing a fact sheet—‘‘Protecting Your Private Information’’—designed to help students and families understand the importance of protecting their private information and granting of permission for others (specifically 

entities other than schools) to access their NSLDS information. 

Alleged Close Relationships with the FFELP Industry: 

It has been suggested that the Department administers the FFEL and DL programs with favoritism to the FFEL program due to alleged close relationships to the 

FFEL industry. This suggestion is totally without merit and has no basis in fact. 

A recent example that demonstrates the falsehood of this assertion is the Department’s swift response to the Inspector General’s September 2006 report that one 

lender, Nelnet, was improperly billing loans from ineligible sources for 9.5% special 

allowance payments. Within two weeks, 9.5% payments to Nelnet were frozen and 

within months, the industry received a Dear Colleague letter (DCL) restating the 

statutory requirements for eligible sources, and we announced that 9.5% payments 

would be suspended for the entire industry. The DCL also indicated that henceforth 

9.5% payments would only be made for loans proven to be eligible after new, industry-wide audits. The Department then issued the methodology to be used in these 

audits, which it developed with the Office of the Inspector General. 

While the IG’s report highlighted another dimension to the problem, our work on 

the 9.5% payments began well before the report’s release. In the summer of 2003, 

17

Department staff noted an alarming increase in special allowance payments made 

to loan holders on certain FFEL loans made or purchased with tax-exempt funds. 

The Department’s staff determined that these claims for the higher payment were 

being made under a loophole in the rules written during the previous administration 

that allowed certain loans financed with tax-exempt funds to qualify for a 9.5 percent special allowance subsidy, minus the applicable rate of interest on such loans. 

This led the Administration to include a proposal in the President’s FY 2005 Budget 

that would stop the increase in 9.5% special allowance payments. 

After the Higher Education Act reauthorization was delayed that year, we began 

working closely with Congress to address the issue. President Bush closed the loophole when, on October 30, 2004, he signed the Taxpayer-Teacher Protection Act of 

2004 (TTPA), which enacted a 1-year moratorium, since made permanent, on granting 9.5% special allowance subsidies on a wide variety of loans financed with taxexempt obligations. 

The savings achieved by closing the loophole went to a purpose close to my 

heart—to increase loan forgiveness programs for borrowers who participate in the 

Federal student aid programs and serve our country as teachers. Under the law, 

teachers who are employed full-time for five consecutive years and are highly qualified in secondary-school science or math, or are highly qualified in elementary or 

secondary school special education, qualify for loan forgiveness of up to $17,500. 

As significant as the Taxpayer-Teacher Protection Act was in curbing a significant 

abuse in the Federal student loan programs and increasing loan forgiveness for 

teachers, the Higher Education Reconciliation Act of 2005 (HERA) promises to have 

a longer and likely more significant positive impact on academic preparation and 

higher education in the U.S. The origins of many of the initiatives contained in the 

HERA can be traced directly to President Bush’s fiscal year 2006 budget, which proposed significant savings in the Federal student loan programs and redirected significant funding to student benefits. These initiatives include curbing excessive special allowance payments and insurance, making the changes to the treatment of 

loans in the Taxpayer-Teacher Protection Act permanent, supporting additional 

need-based grant funding, and raising first- and second-year loan limits. 

Congress also chose to authorize the two new Federal grant programs to help lowincome students pay for postsecondary education—Academic Competitiveness and 

National SMART Grants. These new programs—authorized on February 8, 2006, 

and launched just 143 days later on July 1, 2006—have already awarded more than 

$400 million to over 330,000 Pell Grant-eligible students helping to reduce their student loan debt. While these programs are complex and required significant work by 

the Department and institutions, I believe that they will: first, change the way that 

our high school students prepare for postsecondary education; and second, encourage more college juniors and seniors to study critical, high-need subjects. For this 

reason, I’m pleased that Congress made the decisions that they did in enacting the 

HERA with these two new programs. 

President Bush has consistently put the needs of students—particularly those 

from low-and middle-income families—first. 

Most recently, the President’s fiscal year 2008 budget request, which is pending 

before Congress, would reduce interest subsidies on student loans by 1/2 percent, 

saving $12.4 billion over 5 years. He also proposed to reduce insurance on FFEL 

loans from 97% to 95%, saving an additional $1.6 billion over 5 years. And he proposed to increase the fee lenders pay when making a consolidation loan from 0.5 

percent to 1.0 percent reducing Federal costs by $850 million. These savings will 

be used to pay for increases in the Pell Grant and Academic Competitiveness Grant 

programs and to raise loan limits for juniors and seniors in college. As I am sure 

you are aware, we have been criticized by FFEL lenders, some of whom have 

claimed lower subsidies will force them to reduce borrower benefits or leave the program. However, I believe that we can and must responsibly reduce subsidies in the 

FFEL program and use those savings to increase grant aid. 

Further, it has been suggested that the Department’s employment of skilled staff 

with industry experience equates to ‘‘close ties’’ to the industry and, therefore, does 

not allow for unbiased and impartial oversight and instead emphasizes partnership 

over enforcement. I should note for the record that the previous administration’s 

July 1, 1999 report, ‘‘Reinventing Service’’, from the Customer Service Task Force, 

specifically stated that Federal Student Aid (then named Office of Student financial 

Assistance-OSFA) * * *’’ should be working in close partnership with financial institutions.’’ Additionally, the previous administration began the practice of recruiting skilled staff with industry experience. Greg Woods, Federal Student Aid’s first 

Chief Operating Officer, created a specific organizational unit, the Financial Partners Channel, to work in close partnership with lenders, guaranty agencies, and 

third-party services participating in the FFELP. He also began the practice of hiring 

18

managers with industry experience. The first General Manager of the FSA Financial 

Partners Channel was J. Barry Morrow, who was previously an executive with Sallie Mae. Succeeding Mr. Morrow was John Reeves, who was previously the President of Educaid, at the time the sixth largest student loan lender and the fourth 

largest holder of student loans, and prior to that an executive with The Money 

Store. 

The previous administration understood, and we agree, that the experience and 

insights that private-sector leaders and managers bring to the important task of 

making the financial aid system work better for students, schools, and lenders is 

invaluable. 

Since it was first established as a Performance Based Organization in 1998, Federal Student Aid has assembled a senior leadership team possessing over 300 years 

of experience in the private sector, the higher education community, and government. This team’s leadership and expertise ensures Federal Student Aid achieves 

its strategic objectives, including annually delivering critical financial aid to millions 

of students and families and managing the inherent risks in the programs. 

Since it is responsible for the administration of both the FFEL and DL programs, 

Federal Student Aid administers these programs in an evenhanded manner. The 

two programs share the same goals, the same eligibility requirements, and many 

of the same benefits. We firmly believe that the existence of the two programs has 

led to increased competition, improved customer service, and lowered costs for students and taxpayers alike. It should be noted that, since 2002, significant operational and management improvements have been implemented to enhance administration and financial and operational management of the DL program. These improvements are focused on better serving the 1,087 DL schools and the nearly 7 million DL borrowers, as well ensuring the sound fiscal management of the more than 

$93 billion outstanding portfolio. Prior to 2001, billions of dollars disbursed annually 

under the DL program were not: (1) fully reconciled to the Department’s financial 

records; (2) verified as actually being delivered to students within the required timeframes; and (3) delivered to the DL servicer for on-going servicing within the required timeframes. Today, all disbursements are: (1) 100 percent reconciled from the 

date of disbursement through loan payoff; (2) verified as being delivered to the students or returned to the Department with 30 days as required; and (3) immediately 

delivered to the DL servicer for on-going servicing. 

Inducements: 

New York Attorney General Andrew Cuomo’s testimony before this Committee at 

its recent Hearing on ‘‘Examining Unethical Practices in the Student Loan Industry’’ was ill informed on the Department’s actions and on federal law. Any suggestion by a state attorney general that a violation of a state’s law on deceptive trade 

practices and/or a state’s fraud law would equate with an automatic violation of 

Title IV of the Higher Education Act (HEA) is misleading. 

As Attorney General Cuomo should know, the Department has no authority to 

apply the HEA anti-inducement provisions to consumer credit loans that are governed by other federal regulators, including the Comptroller of the Currency, the 

Federal Reserve, the Office of Thrift Supervision, the Federal Deposit Insurance 

Corporation, and the Federal Credit Union Administration. The legal, regulatory, 

and supervisory framework for consumer protection specifically includes the following statutes, which collectively address the lending process, irrespective of the 

loan product, in terms of equal access, origination, disclosure, and privacy: 

• Truth-in-Lending Act 

• Fair Credit and Charge Card Disclosure Act 

• Fair Credit Reporting Act 

• Equal Credit Opportunity Act 

• Fair Debt Collection Practices Act 

• Home Equity Loan Consumer Protection Act 

• Home Ownership and Equity Protection Act 

• Fair Housing Act 

• Real Estate Settlement Procedures Act 

• Fair Credit Billing Act 

• Expedited Funds Availability Act 

• Truth-in-Savings Act 

• Electronic Funds Transfer Act 

• Consumer Leasing Act 

• Gramm-Leach-Bliley Act 

• Patriot Act 

• Sarbanes-Oxley Act 

19

The Department is investigating, under its authority, whether, in fact, there have 

been violations of the anti-inducement provisions of the HEA. Federal Student Aid 

already has teams performing on-site reviews of the 44 schools and 26 lender/eligible lender trustee relationship for which unethical practices have been alleged to 

date to determine if there have, in fact, been violations of the anti-inducement provisions of the HEA. 

In addition to these efforts to address inducements, we have taken a number of 

steps to tighten our oversight responsibilities of federal student financial aid programs under existing regulations and within the authority the Department has been 

given through the congressionally-mandated process for issuing new regulations. 

These steps include, but are not limited to: (1) improved reporting requirements for 

guaranty agencies and lenders; (2) improved reporting and monitoring of the required reserve ratios that must be maintained by guaranty agencies; (3) the development of a methodology for establishing a FFELP improper payment error rate; 

(4) the creation of consolidated risk management scorecards for both lenders and 

servicers to better target oversight monitoring; and (5) the standardization of the 

Program Review process. In fact, many of these steps led to the removal of the federal student aid programs from the GAO High Risk List in January 2005. 

As noted in my letter to Senator Edward Kennedy on April 17, 2007, the Department issued a Dear Colleague letter on March 30, 2007 reaffirming that student and 

parent borrowers under the FFEL program may select the lenders of their choice. 

Additionally, during its annual Title IV compliance training conferences in October 

and November of 2006, Federal Student Aid specifically addressed the importance 

of compliance with the anti-inducement provisions in the HEA. 

While I appreciate the fact that yesterday, the House of Representatives took an 

important first step in this process, I determined last year that absent Congressional reauthorization of the HEA, it was my duty to address, among other issues, 

preferred lender lists and prohibited inducements in the FFEL program through the 

rulemaking process that you set up by law. Indeed, in January 2007, the Department offered draft regulatory language to strengthen existing regulations on preferred lender list practices and on inducements. Despite the Department’s urging 

that the proposed language be adopted, the negotiated rulemaking committee did 

not reach consensus at their fourth and final session on Friday, April 20. 

As you know, on April 24, 2007, I announced the formation of a Task Force on 

Student Loans to build on the negotiated rulemaking committee’s work around key 

lender issues such as preferred lender lists, prohibited inducements, and NSLDS. 

This internal task force includes representatives from the Department’s Office of 

Postsecondary Education, Federal Student Aid, and Office of the General Counsel. 

Representatives in the Office of Inspector General participate in an advisory role. 

My Task Force just recommended new plans to strengthen the Department’s original position and make it clear that: 

• Unethical practices should cease and desist; 

• All conduct related to student lending should be centered around borrower interests; and 

• Trust and integrity must be maintained in our student aid system. 

I appreciate the hard work of the Task Force and their thoughtful recommendations to protect borrowers. They have made insightful suggestions that would curb 

lender inducements to schools and introduce greater transparency to the practice of 

selecting preferred lenders. I will carefully consider these recommendations as I 

draft a Notice of Proposed Rulemaking (NPRM). I plan to publish an NPRM that 

addresses these issues in the Federal Register in the next several weeks. 

Given the limited statutory authority and high threshold that the Department is 

required to meet in order to bring enforcement action to a school, lender, guaranty 

agency, or other third party, the Task Force identified areas that we will need to 

work with you, Chairman Miller, Congressman McKeon and others in order to 

strengthen the enforcement ability of the Department. I look forward to working 

with you on these recommendations that put an end to unethical practices, put students’ needs first and maintain trust and integrity throughout the system. 

On May 1, 2007, Dallas Martin, President of the National Association of Student 

Financial Aid Administrators (NASFAA), testified during the Subcommittee on 

Higher Education, Lifelong Learning, and Competitiveness hearing, ‘‘Paying for a 

College Education: Barriers and Solutions for Students and Families’’. I strongly disagree with Mr. Martin’s testimony when he claims that the Department’s supposed 

failure to identify and penalize schools for their inadequate administration of student’s financial aid needs has forced schools to seek assistance from lenders, guaranty agencies, and others to print student financial aid consumer information, to 

perform student loan exit and entrance counseling, to establish call centers, and to 

provide additional staffing during peak periods in the financial aid office. In fact, 

20

for the past five fiscal years, the Department has issued schools 124 citations and 

assessments totaling nearly $4.4 million for lack of administrative capability—it is 

one of the top 10 findings in our school program reviews. 

Deceptive Marketing Practices: 

On May 2, 2007, this Committee asked the Federal Trade Commission (FTC) to 

investigate the unfair and deceptive practices that lenders use to market their products and services to students. The Committee made this request of the FTC after 

it had reviewed examples of lenders’ unfair and deceptive marketing letters that use 

what appear to be official government logos and threatening language. The Department shares the Committee’s concern and, in fact, over the past few years, Department staff has been communicating with the FTC staff to share information regarding potentially deceptive marketing materials from a variety of lenders. The Department joins you in calling on the FTC to examine these practices. 

Reading First 

Five years ago, we worked across party lines and made a commitment to have 

every child on grade level or above by 2014. Today, No Child Left Behind is working-shining a spotlight on student achievement and building an appetite for further 

change. 

An integral part of this law, the Reading First program is the largest, most effective reading initiative in our nation’s history. The latest data show that Reading 

First is producing sizable gains in fluency and comprehension for nearly two million 

first, second, and third graders. My Inspector General highlighted where its early 

implementation was flawed, and I took immediate action to correct those problems. 

Let me begin by repeating what I have said since the Department of Education’s 

Inspector General first announced the results of his Reading First investigation. We 

agree with the majority of the OIG’s findings and have accepted all of its recommendations to prevent any future reoccurrence of administrative failures. 

Flaws in the early implementation of the program must not sidetrack the good 

work of a critically important and successful education initiative. We have considerable evidence, including three years of continually improving assessment results, 

that Reading First is working as intended by Congress by building on the federally 

funded research base. It is expanding the use of research-based reading instruction 

in the early grades and significantly improving the reading skills of students in 

some of our historically low-achieving schools. 

In short, Reading First and the students who benefit from it deserve your strong 

support as Congress moves forward in developing the fiscal year 2008 appropriations act and the reauthorization of No Child Left Behind. 

Goals of Reading First 

The goal of Reading First was to translate scientific insights into practical tools 

to be used in classrooms. The Federal research investment supported more than 20 

years of research that followed over 44,000 children from age 5 into adulthood. Researchers at the National Institute of Child Health and Development and the Institute of Education Sciences tracked children who could read well, and they tracked 

others who couldn’t read at all. The National Reading Panel looked at this and thousands of other high-quality scientific studies to determine what the research tells 

us about how children learn to read. When their work was over, our nation had 

gained evidence-based insights into how children read, why some of them have more 

trouble reading than others, and what we can do to get all children reading well. 

The knowledge gained through the research was embodied in the Reading First 

Program designed to improve the quality of reading instruction so that all children 

read at grade level by the end of the third grade. The program pursues this goal 

through three strategies: (1) providing substantial resources at both the State and 

local levels for implementation of effective reading instruction in schools; (2) using 

reading programs and materials that are research-based, combined with high-quality professional development, to ensure that all teachers, including special education 

teachers, have the necessary skills to teach these researched-based reading programs effectively; and (3) using assessments to help classroom teachers screen for, 

identify, and overcome barriers to students’ ability to read at grade level by the end 

of third grade. 

On the issue of research-based instruction, the statute specifies that instructional 

methods and materials, as well as related professional development, must incorporate the five essential elements of effective primary-grade reading instruction: (1) 

phonemic awareness; (2) decoding; (3) vocabulary development; (4) reading fluency, 

including oral reading skills; and (5) reading comprehension strategies. 

The need for implementation of effective strategies and methods of teaching reading is unquestioned. Though we have been pleased to report improvements in readVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00024 Fmt 6633 Sfmt 6621 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
21

ing achievement in the early grades over the past several years, and believe that 

No Child Left Behind is contributing to that improvement, overall achievement levels remain alarmingly low. 

Less than one-third of all 4th-graders scored at the Proficient level or above in 

reading on the 2005 National Assessment of Educational Progress (NAEP), and results for students in the high-poverty schools that are the focus of the Reading First 

program were even more discouraging. Just 16 percent of 4th-graders eligible for 

free or reduced-price lunch scored at the Proficient level or above on the 2005 reading assessment, and more than half (54 percent) scored below the Basic level. The 

2005 NAEP reading results also highlighted the continuing achievement gaps 

among student groups, with the percentages of African-American students (13 percent) and Hispanic students (16 percent) scoring at the Proficient level or above falling far below that of white students (41 percent). 

To help close these gaps, the Reading First State Grants program has made 

awards to all 50 States, and States have made subgrants to approximately 1,550 

local school districts that serve an estimated 5,200 participating schools. The statute 

requires a comprehensive national evaluation of the Reading First program, and the 

Department produced the first report of that evaluation last summer. The most recent Reading First student achievement data, released in April 2007, indicate that 

students in Reading First schools have experienced strong gains in reading proficiency. The July 2006 Reading First Implementation Evaluation: Interim Report 

also found that districts are implementing the major elements of the program, and 

that Reading First schools are more likely to be implementing the program features 

called for in the Reading First law than are non-Reading First Title I schools. 

Early Results of Reading First 

While we do not yet have comprehensive impact data for Reading First, we do 

have considerable early evidence that the program is working as intended. This evidence comes from the most recent Annual Performance Report data: the Interim Report of the Department’s ongoing implementation evaluation; the September 2006 

report, Keeping Watch on Reading First, produced by the Center on Education Policy (CEP); and a March 2007 report from the Government Accountability Office 

(GAO). 

New achievement data reported by the States in the Reading First Annual Performance Report show that Reading First students from nearly every grade and subgroup (Hispanic, African-American, students with disabilities, English language 

learners, and economically disadvantaged) made impressive gains in reading proficiency in 2005 and then again in 2006. 

In Reading First schools, the percentage of 1st graders meeting or exceeding proficiency on Reading First fluency outcome measures increased by 14 percentage 

points (43% to 57%) from 2004 to 2006. 

In Reading First schools, the percentage of 3rd graders meeting or exceeding proficiency on Reading First fluency outcome measures increased by 7 percentage 

points (36% to 43%) from 2004 to 2006. 

On average, the 26 States with 2004 baseline data increased the percentage of 

students meeting or exceeding proficiency on fluency outcome measures by 16% for 

1st graders, 14% for 2nd graders, and 15% for 3rd graders. 

On average, the 26 States with baseline data increased the percentage of students 

meeting or exceeding proficiency on comprehension outcome measures by 15% for 

1st graders, 6% for 2nd graders, and 12% for 3rd graders. 

The Reading First Implementation Evaluation: Interim Report highlighted the following key findings regarding the early implementation of the Reading First State 

Grants program: 

• Reading First schools are implementing the major statutory requirements, including the use of scientifically based reading instruction, increased reading time, 

interventions for struggling readers, reading assessments, and increased professional development. 

• Though non-Reading First Title I schools also emphasized reading instruction, 

Reading First strategies (that is, strategies that reflect the research on what works 

in teaching children to read) were used more extensively in Reading First schools 

than in Title I schools. 

• Reading First teachers were significantly more likely than their counterparts in 

non-Reading First Title I schools to place struggling students in intervention programs. 

• Reading First schools were more likely than non-Reading First Title I schools 

to have a reading coach, and Reading First coaches were more likely to provide 

teachers with various supports than were coaches in non-Reading First Title I 

schools. 

22

• Reading First staff received significantly more professional development than 

did non-Reading First Title I staff. 

The changes in Reading First schools suggested by these findings contributed to 

the Effective rating achieved by Reading First State Grants in the 2006 Program 

Assessment Rating Tool (PART) process. The PART found that the Reading First 

program benefited from a strong program design and local management practices 

that appeared to help bring about improvements in student reading achievement. 

In particular, based on achievement data submitted by participating States, the 

PART found gains on all program performance measures for the 2004-2005 school 

year. 

Between 2003-2004 and 2004-2005, the percentage of students who met or exceeded proficiency in reading on Reading First outcome measures of fluency increased: • from 43% to 50% for first-grade students; • from 36% to 39% for third-grade students; • from 33% to 39% for economically disadvantaged second-grade students; • from 27% to 32% for limited English proficient second-grade students; • from 34% to 37% for African-American second-grade students; • from 30% to 39% for Hispanic second-grade students; and • from 17% to 23% for second-grade students with disabilities. 

The number of States reporting an increase in the percentage of students who met 

or exceeded proficiency in reading on Reading First outcome measures of reading 

comprehension increased: 

• from 2 to 14 for first grade-students (20 States had two years of data); 

• from 7 to 19 for third-grade students (23 States); 

• from 4 to 14 for economically disadvantaged second-grade students (20 States); 

• from 5 to 6 for limited English proficient second-grade students (18 States); 

• from 5 to 16 for African-American second-grade students (19 States); 

• from 5 to 9 for Hispanic second-grade students (19 States); and 

• from 2 to 12 for second-grade students with disabilities (19 States). 

These achievement gains are all the more remarkable because the schools served 

by Reading First are among the lowest-performing schools in the country. The early 

results highlighted by the PART review suggest that comprehensive implementation 

of research-based reading instruction can bring about rapid improvement even in 

some of our worst schools. 

The PART data were echoed by the CEP report, Keeping Watch on Reading First, 

which found that the program was ‘‘having a significant impact’’ on reading instruction in participating districts and schools. In particular, more than 90 percent of the 

1,700 districts surveyed by CEP reported that the Reading First instructional program and assessment system were ‘‘important’’ or ‘‘very important’’ causes of gains 

in student achievement in reading. 

Another critical benefit of Reading First cited by the CEP report was the use of 

Reading First as a school improvement strategy under No Child Left Behind. In 

part, this reflects the statutory requirement that States use Reading First funds to 

make available professional development in reading instruction to all schools, and 

not just those participating in Reading First. About 80 percent of States reported 

that offering professional development through Reading First was a key strategy for 

schools identified for improvement under NCLB, and a similar percentage of States 

said that providing curriculum and assessment materials through Reading First was 

a key improvement strategy. More importantly, about three-fifths of States reported 

that these Reading First-based strategies were ‘‘moderately or very effective in raising student achievement.’’

A March 2007 report from the Government Accountability Office (GAO) also indicated that States have reported that there have been a number of changes, as well 

as improvements, in reading instruction since the implementation of Reading First. 

According to the report, 69% of all States reported great or very great improvement 

in reading instruction since inception of Reading First. 

Management Issues 

My message today is that the senior leadership of the Department of Education 

shares the widespread public concern about these issues, and has moved decisively 

and rapidly to respond to the issues raised by the Inspector General. Most significantly, in last year’s annual performance and accountability report to Congress and 

the public, I declared a material weakness for program management at the Department based in large part on the issues raised about the management of the Reading 

First program. The material weakness does not diminish the significant progress we 

have made as a Department in improving the management of our programs, but 

rather reminds us that our work to ensure that our programs are managed to the 

highest standards is not yet complete. In addition, I have instructed my senior staff 

23

to implement each of the recommendations from the Inspector General’s report. 

More specifically, the Department has already completed more than a 20 action 

steps in response to those recommendations. These have included: • Appointing Dr. Joseph Conaty, a well-respected career executive with nearly 20 

years of experience at the Department of Education, to manage the program; • Establishing an intra-Departmental group that meets regularly to help guide 

the implementation of the program. The group is made up of various officials within 

the Department, including representatives from the Office of Elementary and Secondary Education, the Office of the General Counsel, and the Office of the Chief Financial Officer; • Expanding Reading First staff to reduce reliance on outside contractors; • Providing guidance on ensuring fairness and objectivity in the peer review process in all formula grant programs. This guidance was specific to issues involving 

conflict of interest; • Providing additional guidance to contractors and subcontractors to enhance the 

objectivity and effectiveness of their services, including clarifying conflict-of-interest 

prohibitions pertaining to the use of peer review panels and private contractors; • Reviewing all Reading First applications to ensure compliance with funding criteria. This review determined that the majority of State applications had the appropriate documentation. The Department is continuing to work with the additional 

States to resolve any remaining issues; and 

• Conducting outreach to States on potential concerns about Reading First issues. 

To date, the Department has received 25 letters from States. 16 of those letters said 

only positive things about the Reading First program. An additional 13 States responded that they either had no concerns or did not intend to write a letter. We 

remain committed to working with all States to address any concerns they may 

have about the program. 

In addition, the new Reading First program director, together with representatives from the Office of Inspector General and the Office of the General Counsel, 

delivered a presentation at the end of January to the National Association of State 

Title I Directors on the ‘‘lessons learned’’ from the IG’s findings, including on the 

implementation of new internal controls designed to ensure the integrity of the 

grant application process. This presentation also described steps that the Department is taking to ensure that our officials, consistent with the Department of Education Organization Act, do not take actions that could be interpreted as directing 

or controlling State and local curriculum decisions. 

I have also developed a charter for the peer review panel in Reading First that 

would further strengthen the program’s implementation in line with the Federal Advisory Committee Act. This panel would help the Department review issues that 

arise with State applications for Reading First and evaluate the third-year progress 

reports from the States. A notice of intent to establish this panel in accordance with 

the Federal Advisory Committee Act was published in the Federal Register on 

March 1, 2007. 

We believe that these comprehensive actions will help restore public confidence 

in the Department’s ability to fairly and impartially administer the Reading First 

State Grants program, and allow us to build on the progress that States, school districts, and schools have made under this program in improving reading instruction 

in the early grades. 

I urge the Members of this Committee to look at the entire record, and not just 

the recent headlines, as you evaluate the progress of Reading First and consider 

changes during the upcoming budget and reauthorization debates. If you do, I think 

you will agree that Reading First, with its emphasis on research-based instruction 

in the critical early years, is one of our best tools to ensure that all students receive 

a high-quality education, and it that merits your strong support. 

I would also like to take this opportunity to thank Congressman McKeon and 

Congressman Castle for introducing H.R. 1939, the Reading First Improvement Act. 

This legislation goes a long way toward addressing many of the concerns about the 

early implementation of Reading First. I look forward to continuing to work with 

Mr. McKeon, Mr. Castle, and other members of the Committee to strengthen Reading First. 

Conclusion 

Where the law needs changing, let’s do it. And where families need our help, let’s 

provide it. Together, we can enact policies that better prepare more students for college * * * and help make sure they can afford it once they get there! 

But together, we can and must do more. From K-12 to higher education, you and 

I now have an opportunity to enact meaningful new policies that make a real difference for students and families—just as we did 5 years ago. 

24

There’s no time to wait. Nearly two-thirds of all high-growth, high-wage jobs created in the next decade will require a college degree-a degree that only one third 

of Americans have. I stand ready to work with you to make a real difference in the 

lives of the people we’re all here to serve. 

Thank you. I would be happy to answer your questions. 

Chairman MILLER. Thank you very much for your testimony. 

As everyone is aware, the bells have rung, but let us go ahead 

and begin. 

Madam Secretary, I would hope that you would not characterize 

the concerns that have been raised by this committee, by the Senate committee, by the state attorneys general as peripheral to the 

program. 

The integrity of these programs is absolutely essential to its core, 

which I think you say elsewhere in your testimony, and the questions that have been raised, the suggestion that somehow this only 

dealt with private loans and therefore it is sort of out of your jurisdiction, I would like to point out that in many instances these are 

the same entities making public and private loans in their negotiations and discussions, and that is where we get into trouble sometimes with the institutions of higher education. 

And we will all stipulate to your statement that the federal aid 

has failed to keep up with the soaring cost of education, which 

therefore makes every one of these dollars and our ability to get 

them to students and to families even more valuable. 

As you point out, the Congress has long had a policy, the law, 

against inducements, prohibitive inducements, and this issue has 

been raised for a considerable period of time within the department. To date, with all due respect, the department hasn’t actually 

acted on these with any sense or haste or urgency. And over the 

last several months, we have seen a number of inducements identified and people have settled or people have paid money or they 

have said they will never do it again. 

But if I could just ask, if I could have your sense of these inducements. We had ones where clearly there were revenue sharing and 

referral fees paid by lenders to colleges. Do you consider that an 

acceptable practice? 

Secretary SPELLINGS. No, and, Mr. Chairman, this is where I 

think we really need some changes in law. The hurdle is very high. 

For me to establish a violation, I must prove a quid pro quo between the——

Chairman MILLER. We will get there. We will get there. 

Lenders were offering pools of money for lending—private pools 

of money for lending in exchange for placement on the preferred 

lender and exchange for a percentage of the federal loan volume on 

campus. I assume you don’t agree with that as a practice, and that 

is an inducement. Lenders paying for financial aid officer’s trips to 

resorts and to serve on the ‘‘advisory boards.’’

Secretary SPELLINGS. As I said, Mr. Chairman, I need to clarify 

what the provisions are around inducements and the——

Chairman MILLER. I understand that. 

Lenders paying for supplementing the salaries and school aid officers, I assume you do not find that an acceptable practice. Is that 

correct? 

Secretary SPELLINGS. That is correct. 

25

Chairman MILLER. Financial aid officers holding stock in the 

lenders that they are recommending to students. 

Secretary SPELLINGS. Mr. Chairman, of course I don’t find that 

acceptable, but I have to clarify whose roles and responsibilities are 

implicated as we discuss those things. 

Chairman MILLER. I understand that. Let me get to my point 

here. 

My concern is about the department in the broad sense of the 

word and the image, that from 2001 guidance was requested and 

provided to the department about how to deal with this issue. 

There were complaints from other lenders, there were concerns 

within the department, and nothing was done with respect to that 

guidance. 

An alert was again provided in August 1 of 2003 and at the end 

of long protracted discussions with the inspector general, essentially, what you had was the department saying, ‘‘We are going to 

continue to monitor this,’’ until we find the stories coming out of 

the New York attorney general about actions that were taken 

there. 

I just don’t quite understand how if monitoring was the solution 

that the department chose, how it is that they didn’t pick up any 

of these activities. Again, these were people who were skilled and, 

as Mr. McKeon pointed out, came from the industry, understood it, 

and somehow they missed every one of these, even though we now 

see them almost in every state in the union and across a significant 

number of colleges and lenders. 

Secretary SPELLINGS. Well, Mr. Chairman, it is appropriate that 

I parse the various issues that you have raised, because there are 

different enforcement capabilities around a variety of them. 

Let me start with Nelnet, the issue that was raised——

Chairman MILLER. Let’s just stick with the inducements for a 

second. 

Secretary SPELLINGS. All right. Let’s stick with the inducements. 

Chairman MILLER. So why is it from 2001 until recently when 

you started negotiated rulemaking, and that failed; did that alert 

you to some of the problems around the inducements until your appointment of the task force after this all came to light? 

Secretary SPELLINGS. Mr. Chairman, when I became secretary, I 

immediately began my work on higher education. I have probably 

been the most active secretary in this policy arena in a very long 

time. That is why I appointed a commission. But I think we also 

have to be aware of the interrelated nature of all these things. 

As they did their work, it became abundantly clear to me that 

I needed to initiate a negotiated rulemaking process in the absence 

of congressional action. It was the first time, except for the Fed Up 

initiative that Congressman McKeon had precipitated before, that 

that had been done. And that is why I initiated the process, the 

18-month process, and in December of last year began to raise 

these issues before that negotiated rulemaking group. They failed 

to reach consensus. 

I said that I would take that advice under consultation that they 

had, that they did not reach consensus on those matters, and that 

is why I have acted to recommend and to post to the Federal Register these aspects to end this inducement practice. 

26

Now, I also have to say, Mr. Chairman——

Chairman MILLER. With all due respect, Madam Secretary, this 

isn’t about you. It is about the department. It is about the failure 

of the department over a period of 5 years to deal with the problem 

that is growing in intensity, growing in its ethical unacceptance 

and probably in its criminal behavior. 

And as we now see, settlement after settlement, all across the 

country, at no time did anybody in the department think of picking 

up the phone and telling people, ‘‘You have got to stop this. We are 

going to work on a regulation.’’

It essentially has gone on to today without an official statement 

by the department about its unacceptability. That is the point. 

Secretary SPELLINGS. Well, Mr. Chairman, I agree in large part 

with aspects of your point, but I think it is appropriate, and this 

is one of those a picture is worth a thousand words sorts of instances where I would like to commend you to our little diagram 

about how oversight of this program works. 

Chairman MILLER. I have seen it. I have looked at it. 

Secretary SPELLINGS. Now, I want to talk specifically about inducement matters, and that is that the hurdle that must be cleared 

by the department for us to assert a violation in the SL Program 

is a quid pro quo relationship between the awarding of a particular 

loan and the cruise of New York Harbor, for example, so that I 

must prove a direct relationship between that act and the awarding 

of the loan. And that is why we need changes in the law. 

Chairman MILLER. But with all due respect, the question of 

whether you can prove that or not and your understanding, and apparently a lot of other people’s understanding, as they prosecuted 

this, is to, at a minimum, its ethical unacceptability. The idea that 

if you couldn’t prove it there, that therefore no action is taken, ‘‘We 

are going to monitor it.’’

On all of the monitoring, over 5 years, you couldn’t make the determination as a department that these practices should have been 

stopped? 

These practices, people were laying out millions of dollars of 

these inducements. I appreciate that there is not a piece of paper 

between the University of Indiana and a $3 million grant from Sallie Mae and they drive the Direct Student Loan Program, a federal 

program off campus. But, you know, when they were caught at it, 

they pledged to never do it again and paid back the money. You 

know, when these other people were caught at the cruises and it 

was brought to light, they paid back the money, they rebated 

money to students, they swore they would never do it again. 

So none of that was about proving it in the court of law. People 

were caught and the officials showed up at their front door and 

said, ‘‘This practice is unethical and illegal.’’ They didn’t say, ‘‘Well, 

take me to the Supreme Court.’’ They were caught, but nobody 

from the Department of Education showed up at the front door. 

That is what I don’t understand. 

Secretary SPELLINGS. And I guess my question would be, did 

anyone show up from the FTC or the SEC or these other bodies——

Chairman MILLER. But they are not here today, with all due respect. 

27

Secretary SPELLINGS. Well, Mr. Chairman——

Chairman MILLER. This is about your program. Your program is 

coupled; you can’t suggest that this is laid off on the private loan 

sector. This is coupled with the very same parties. It is convenient 

to decouple them, but the fact of the matter is, Sallie Mae was offering private pools of money in exchange for an increased federal 

participation in the loan volume. They were coupled——

Secretary SPELLINGS. Mr. Chairman——

Chairman MILLER [continuing]. And when they were caught, 

Madam Chairman, when it was suggested that we understood what 

they were doing, they said they will never do it again. 

Other lenders had brought this to the attention of the department. 

Secretary SPELLINGS. I agree with you that we need changes in 

the law to make it more robust with respect to enforcement. 

Chairman MILLER. What went wrong? 

Secretary SPELLINGS. Mr. Chairman, as you know, and as I have 

pointed out on this diagram, there are 6,000 institutions. This is 

a multibillion dollar industry. There are aspects that relate to eligibility and authorities governing the SL Program and others that 

relate to SL. There are multiple grant programs. 

Chairman MILLER. When it was suggested that students would 

not get a loan they applied for because it was not the lender that 

the school chose, you issued a, ‘‘Dear Colleague.’’ Boom, you 

stopped the practice. 

Secretary SPELLINGS. And I have the authority to do that under 

current law. 

Chairman MILLER. For paying people, for putting people on their 

payroll, for providing trips and inducements, for taking the federal 

program off campus for money, there is no ‘‘Dear Colleague,’’ there 

is no letter, there is no phone call that the department, the director 

of the program, whoever, can make to say, ‘‘This is unacceptable’’? 

Secretary SPELLINGS. We have conducted thousands and thousands of audits of programs over the last several years, obviously. 

Chairman MILLER. But, apparently, not related to this. 

Secretary SPELLINGS. Well, to the extent that I am charged with 

implementing a law and enforcing a law that has a very high hurdle to be cleared, then perhaps we need a change in the law. 

Chairman MILLER. With all due respect, I cannot accept that answer, because it isn’t about the high hurdles to be cleared. It is 

about whether or not you look at a situation, and, again, other law 

enforcement looked at the situation, made a determination and the 

practice ended. Nobody went to the Supreme Court, nobody went 

over the high hurdle. 

It was clear on its face the egregious nature of the inducement, 

the conflict of interest and the unethical behavior. Nowhere in 5 

years of monitoring, which was your—the department’s, not 

yours—the department’s accepted practice did anybody make an effort to call a halt to these practices, with all of the audits that you 

cite in your testimony. 

Secretary SPELLINGS. Well, as I said, we monitor these programs 

vigilantly. There are——

Chairman MILLER. Apparently not, Madam Secretary. I understand what you are saying, and that was what you told the inspecVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00031 Fmt 6633 Sfmt 6602 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
28

tor general, that your choice of enforcement was continuing monitoring. Who was monitoring? Did they have blinders on? 

Secretary SPELLINGS. Thousands of audits and——

Chairman MILLER. Not with respect to this problem. I know you 

have audits and people paid money, and you found problems with 

the programs all over the campuses. 

Secretary SPELLINGS. And fines. 

Chairman MILLER. You never found one of these problems, apparently. 

Secretary SPELLINGS. Well, to the extent that it was not a violation of the laws that I am charged with overseeing, then, no, we 

didn’t take action. 

Chairman MILLER. Well, then you made an assumption, that 

whether you put people on a cruise to the Caribbean, whether you 

pay millions of dollars to kick a federal program off campus, whether you provide private money so you can buy a larger share of the 

Federal Loan Program on a particular campus, you made a decision 

at the outset that none of that was a violation of the law and it 

was not worthy of any discussion with the campus, with the college 

president, with the lending authority or with the loan officer on 

campus. 

Secretary SPELLINGS. Clearly, I was concerned about those practices, and that is why I initiated the rulemaking last fall. But I 

would say that the ability to try to prove that level of legal burden 

in such cases was not something that——

Chairman MILLER. I am afraid that has become a crutch. That 

is sort of like you said it is a high burden on Nelnet, so, therefore, 

we will let them keep the $300 million and they will give up the—

they gave up $1 billion and you said this was too high a burden 

to think about going to court and the minute you walked in the 

door they gave $1 billion. 

Secretary SPELLINGS. Mr. Chairman——

Chairman MILLER. They must have had a hell of a strong case. 

They must have said, ‘‘Boy, we have got that Department of Education nailed. We have got them so nailed we are going to give up 

$1 billion.’’ It is just not plausible. 

Secretary SPELLINGS. Well, I would like to take a moment and 

explain the Nelnet settlement, if I may. 

Chairman MILLER. We are going to have to decide whether we 

are going to run and vote. We have 2 minutes. 

Secretary SPELLINGS. When you get back. 

Chairman MILLER. Yes. With baited breath, we wait for the answer. 

Secretary SPELLINGS. Yes, sir. 

Chairman MILLER. Thank you, Madam Secretary. 

Secretary SPELLINGS. Thank you. 

[Recess.] 

Chairman MILLER. The committee will come back to order. 

Madam Secretary, thank you very much for putting up with the 

interruption. You are no stranger to the Hill, so you know how this 

works. But also thank you very much. 

The secretary has agreed to stay till 1:30 to allow as many members as possible to have an opportunity to question. 

I think I have about 5 minutes left. 

29

Madam Secretary, when we left, I was concerned that the department for a considerable period of time had chosen the alternative 

in looking at inducements of monitoring, of continuous monitoring 

of this program and the fact that it did not appear that in all of 

that monitoring that they became aware of many of the egregious 

practices that you, I and Mr. McKeon and almost everybody else 

think were wrong within the program. And I just don’t understand 

why that was the selected practice. 

Secretary SPELLINGS. Mr. Chairman, I agree that we have work 

to do on preferred lenders and inducements, and that is why today 

I have taken action to post those rules. 

As you know, much of this has come to our attention through the 

attorney general of New York, and, like you, I have read about 

much of that in the newspaper. Those are things that violate various state deceptive trade practices, laws and so forth, and I do, I 

think this speaks to an area where we need to strengthen the law 

and strengthen the ability to have oversight. 

As I said before, the threshold is very high for us to prove a direct quid quo pro between the inducement, the group and the actual loan or increase in lending. But is there more to do on inducements? You bet, and that is why I am doing so. 

Chairman MILLER. Well, I appreciate that answer, and I welcome 

those changes, and I think they are important, because I find that 

more in keeping with the OIG’s recommendation where the OIG 

stated that, ‘‘We are looking for the department to take a strong 

role and provide guidance to the community, not wait and see what 

the community wants them to say about it.’’ That was in response 

to the August 1, 2003, guidance. 

And I think the OIG had it right, and I think it has been a costly 

lapse in enforcement by the department to the credibility of this 

program, because I think it is very clear, when we held our hearings and when we agreed upon the bill, when we talked about the 

practices, there is an agreement here that these are just unacceptable inside of this program. 

And my concern is that it may be a high legal barrier, but I suspect we haven’t completely lost a sense of shame, and when you are 

dealing with marquis universities and marquis public companies, 

these practices just don’t hold up very well in the light of day. 

And I think that the Office of the Secretary and the department 

have got to let these people know that these practices are unacceptable. We will deal with the legalities later, but they have got to be 

told that this is unacceptable to the ethical standards of the department, to the Congress and certainly to the people who are borrowing money. 

Secretary SPELLINGS. I will use what moral suasion I have, but 

I also——

Chairman MILLER. It is considerable. 

Secretary SPELLINGS [continuing]. Want to use the negotiated 

rulemaking to do something that we can enforce. 

Chairman MILLER. No, I understand that. I understand that, and 

you have been working that process. I am just saying at some point 

you have got to stop the bleeding. And in this case, I think there 

is enough moral suasion in the department to stop the bleeding 

while you go forward with that. 

30

If I can turn, in my remaining time, to the question of the 9.5, 

the so-called Nelnet issue. There you engaged in the settlement 

with Nelnet, which ended up, I believe, if I characterize this right, 

they kept $278 million from past practices, and they forego potential revenue on a continuation of those practices into the future of 

$800 million over X number of years. Is that a fair statement? 

Secretary SPELLINGS. The potentiality for additional costs of the government was nearing $1 billion, yes. 

Chairman MILLER. Right. Can you tell us why the settlement in 

that frame? 

Secretary SPELLINGS. Yes, sir, I can. And this is a highly complex 

part of the law, the 9.5 percent special allowance payment provision. It has not been tested in a court. There are four practices that 

were brought to bear as part of this. You all closed three of those 

four in HERA and in the Teacher Taxpayer Protection Act. 

Chairman MILLER. Right. 

Secretary SPELLINGS. For the record, I will say that the president 

was very early in observing this practice in January of 2004. In his 

2005 budget, he sought to close it and so forth. So that chapter is 

closed. 

With respect to one other practice, the transferring, it was not 

considered to be unlawful to the extent that they were first and 

second generation loans. 

Chairman MILLER. Right. 

Secretary SPELLINGS. My inspector general brought to my attention that that organization was misusing that particular aspect. 

We, at the Department of Education, had sent, I think, an unclear 

answer and continued to make payments in the year between 

Nelnet’s request for an answer and subsequent action. And, as 

such, I believed, and obviously anyone can second guess the legal 

settlement, that we had significant exposure to this government 

and significant liability potential for not only this entity but potentially impacting others. 

And so that is why, I think, as a matter of prudence, I agreed 

to end, finally, this practice, settle that lawsuit for approximately 

$278 million, mitigating it against the nearly $1 billion of additional damage that might have been incurred had we lost that lawsuit. I worked with my inspector general to provide a methodology 

that would be sound and that could apply about legitimate reimbursements under that, and that is what we have done. 

Chairman MILLER. Thank you. And I appreciate that action. 

Again, I say this not to hold you responsible, but this is a review 

of the department with respect to enforcement. This 9.5 problem 

was outlined in 2001 in a department-wide memo saying that, essentially, that these people put together a scheme to extend the life 

and this exorbitant subsidy at a time of record low interest rates, 

costing this huge amount of money. And it really isn’t until Nelnet 

comes to light quite later and you deal with that. 

But, again, the failure to respond to this, to look at it, to engage 

with it over 4 years until Nelnet, we paid out a lot of money in 

those 9.5s. 

And, apparently, there were others who were doing the same 

kind of things. You have sent them a ‘‘Dear Colleague.’’ It appears 

you may have stopped them in their tracks when you said they are 

31

going to have to prove the trail of their right to the 9.5 and you 

are going to ask for an audit of each one of those. 

Again, my concern is that $1 billion is on the table—and there 

is no question I am second guessing your judgment here—you 

make a determination there is a very high legal barrier to do this 

and yet the people who are engaged in the same practice stop the 

practice when they get a ‘‘Dear Colleague.’’

And Nelnet, as I said before, if it is such an easy case for them, 

why do they walk away from $1 billion? I mean, if they spent $100 

million on lawyers, if it was so easy, they would be in great shape. 

Secretary SPELLINGS. Well, that is something we will——

Chairman MILLER. It was a scheme. 

Secretary SPELLINGS [continuing]. Obviously we will never know 

the answer to that of——

Chairman MILLER. That is right. That is my concern. 

Secretary SPELLINGS [continuing]. Who would have won a lawsuit in this case. I was concerned that having paid, I think, four 

or five quarterly payments to that and many other organizations 

around that, that we had significant legal exposure, and all I could 

do at the time was all I could do, which was to end definitively 

once and for all that practice by closing that loophole and applying 

a methodology broadly across the industry. 

Chairman MILLER. Well, I think, as we saw with your ‘‘Dear Colleague,’’ that might have stopped Nelnet in their tracks too, and it 

could have stopped from the department, not necessarily when you 

were there but either while you were there or your predecessor and 

could have stopped this hemorrhaging of money that they were not 

entitled to, that had been brought to their attention. 

I have run out of time. I don’t think this is the last we are going 

to hear about it. My understanding is that the Department of Justice is now looking at that audit and we will see where that takes 

us. 

I recognize Mr. McKeon. 

Mr. MCKEON. Thank you, Mr. Chairman. 

Madam Secretary, I know that you have been at the department 

now for a little less than 2 years, but we keep talking about before 

you got there, so I want to go back even a little further than before 

you got there. 

You have been criticized, your administration’s been criticized for 

lack of oversight, but there is really no context for that allegation. 

In comparison to the Clinton administration, can you tell us how 

many program reviews and audits were handled by the Federal 

Student Aid Office during the Clinton administration and the current one? 

Secretary SPELLINGS. Mr. Chairman—I mean, Congressman, no, 

I do not——

Mr. MCKEON. That is okay. [Laughter.] 

Secretary SPELLINGS. Pardon me, Mr. Chairman. 

Chairman MILLER. I call him a Democrat all the time. You might 

as well call him chairman. It will balance out over time. 

Secretary SPELLINGS. Pardon me, Mr. Chairman. 

Well, we have not done any analysis about that, candidly, and 

I——

32

Mr. MCKEON. Maybe you could do it for the record as a follow 

up. 

Secretary SPELLINGS. I would be glad to, but my understanding 

is that it is somewhat in excess of the kind of monitoring, the thousands of monitoring investigations that go on as part of FSA enforcement. We will certainly look at that. I am about going forward. 

Mr. MCKEON. I had a follow-up question on that, and maybe I 

can get that for the record too. Just, kind of, if you could do a comparison between the 6 years that President Bush has been president——

Secretary SPELLINGS. I would be delighted to do that. 

Mr. MCKEON [continuing]. And the 8 years and even before that, 

if we want to go back 20 years, because some of these programs 

have been around that long. 

You have been criticized for not addressing the issue of the 9.5 

loans in a timely fashion, an issue that has been around for at 

least 20 years. We know that the Clinton administration actually 

increased the number of loans eligible for 9.5 when they published 

their 1996 ‘‘Dear Colleague’’ letter. But what I want to know is 

what the Clinton administration did to limit payment on those 9.5 

loans. 

Secretary SPELLINGS. I am not aware of any action that they 

took. 

Mr. MCKEON. Maybe you could find out, if you could clarify that 

in the record. 

Secretary SPELLINGS. I will. 

Mr. MCKEON. Madam Secretary, isn’t it true that you personally 

took this issue on and pushed Congress to enact legislation to limit 

9.5 loans when the general counsel at the Department of Education 

advised you that negotiated rulemaking would be required to 

change policy, and you realized that such a progress would take 

longer than getting Congress to act? 

Secretary SPELLINGS. Well, I think I would say a couple of 

things. First, in January of 2004, actually, February of 2004, in the 

president’s 2005 budget, he recommended the closing of this loophole. As I have explained, it is a complicated provision, that there 

are actually four aspects of this law. And with respect to the one 

that did not need additional statutory action, we did clarify that 

through a ‘‘Dear Colleague’’ letter. 

Mr. MCKEON. Madam Secretary, you have been criticized for not 

enforcing the inducement prohibition in the Higher Education Act. 

We know that the Clinton administration took an action against 

Sallie Mae, which was decided in Sallie Mae’s favor by an administrative law judge in 1996. 

For the record, do you know how many other enforcement actions 

were taken by the Clinton administration with respect to inducements? 

Secretary SPELLINGS. I do know that the department lost that 

case that you mentioned. With respect to other actions that they 

may have taken, I will tell you that as high as the threshold is, 

that the hurdle is, we have taken action against some of these inducement issues, and there are some examples of that in my written testimony, with the Dr. Scholl’s Podiatric College and various 

other entities where a direct relationship was proved. But I will 

33

also do analysis of the previous administration and ours about enforcement around those matters. 

Mr. MCKEON. Madam Secretary, has your administration taken 

any such action against lenders? 

Secretary SPELLINGS. On inducements? 

Mr. MCKEON. Yes. 

Secretary SPELLINGS. Well, as I said, the statutory burden that 

I have to prove and that is brought to bear by me is a difficult one 

to prove. However, obviously, all these various other things that 

are going on with attorneys general around the country and the 

like are brought to bear under state laws and various other enforcement authorities. So to the extent that that might implicate 

other lenders, I am not aware. 

I do want to say quickly that we have contacted the Attorney 

General’s Office in New York and asked him for all the information 

that he has found, and he has made one contact with my inspector 

general’s office with respect to personnel matters, but I am very 

anxious to get what information he has and, as I said in my opening statement, have sent teams to the 44 institutions that we have 

read about in the paper, and I am anxious to get what information 

he might have internally. 

Mr. MCKEON. Madam Secretary, last week, the testimony of Dallas Martin, president of the National Association of Student Financial Aid Administrators, before the Subcommittee on Higher Education, Lifelong Learning and Competitiveness, stated that the department has never fined an institution of higher education for 

lack of administrative capability and that had the department done 

so schools would not have accepted help with staffing in the financial aid office or with call centers or brochures. 

Do you think that is true? And in light of his testimony, do you 

plan on fining more schools for lack of administrative capability if 

someone at the U.S. Department of Education believes the institution needs more staff in the financial aid office? 

Secretary SPELLINGS. Well, I would say a couple of things about 

that. One is, that that is something that we do look at as part of 

the reviews of the programs, and since 2004, we have assessed citations or fines at 124 different instances of those matters, to the 

tune of nearly $4.5 million. 

However, having said that, I mean, the staffing of universities is 

not within the purview of the Department of Education, and so 

while it is something we certainly look with respect to capacity 

adequately serving students and eligibility for these programs, yes, 

but in the aggregate of how many people does it take at the University of Texas to run a program, that is certainly in their jurisdiction. 

Mr. MCKEON. Madam Secretary, did you ever imagine you would 

be expected to be the ethics police for our nation’s colleges? 

Secretary SPELLINGS. No, Congressman. I didn’t imagine it, and 

I don’t think I am. I think the academy has a role to play here and 

should. In fact, I have found in some cases the silence to be a little 

deafening, and I think they can do more internally through codes 

of conduct at institutions or state legislative policies or higher education governing board policies and those sorts of things. But it 

would be imponderable for me to be fully aware of the individual 

34

situations of staff and financial aid officers and more than 6,000 

different colleges and universities in this country. 

Mr. MCKEON. Are you surprised that our colleges have not been 

addressing the ethics issues that have been written about in the 

press? 

Secretary SPELLINGS. Well, I think I am encouraged when I see 

that when it is called to their attention they have gone to work. 

Obviously, it is not in their interest to have a lack of credibility and 

lack of confidence around their good reputations. And so I think 

they have sprung into action in those isolated cases. 

I do think they can do more. I think there can be codes of conduct put in place and so forth, and I will urge them to do so. 

Mr. MCKEON. I said in my opening statement that I hope that 

what we could get out of this kind of a hearing is a chance for us 

to work together to get action to stop bad acts that have taken 

place and move forward together. Because, really, all of us should 

be focused on what is best for the young people or sometimes not 

so young people in our nation that are trying to get an education 

to better themselves to achieve the American dream. That should 

be our focus, in my view, not to play gotcha with things that have 

happened in the past, unless we use it as a learning thing to move 

forward. 

I really am concerned that some of the things that have been 

written, some of the things that have been said, even some of the 

things that have happened in hearings here tend to paint a bad 

light on 6,000 schools when it may be just a very small number of 

those that are really doing things they shouldn’t be doing. The 

same with the number of lenders. Yes, the ones that are out of line, 

that are doing things that are violating the things that the chairman talked about that we all agree on, those should be taken care 

of. And the bill, I think, that we passed yesterday in the House 

moves to help that. 

Yesterday, the New York Times quoted Terry Hartle, a former 

Kennedy staffer and current senior vice president of the American 

Council of Education, as saying many of the problems that have 

come to light had not been considered a problem before. Lots of 

things that were seen as acceptable 3 months ago are no longer regarded that way. 

Why do you think that is? Are things really as bad as the press 

would like us to think or is this political theatrics? 

Secretary SPELLINGS. Well, Congressman, I will let others be the 

judge of that, but I do think what is, kind of, a teachable moment 

out of all of this is that we have learned there is major room for 

improvement in all of this, and I do think that there has been some 

service in that. 

I do think, in light of your comment previous to that as well as 

the one you just made is, that it is hard enough to get kids qualified and interested and unintimidated enough with accessing higher education in the first place. And we need to do all we can to provide a lot of confidence and a lot of sense of security around that 

process. 

And we must understand, kind of, the macro level policy picture 

here, which is not just about a special allowance payment but how 

all of this fits together for kids, how easy it is, how early it is, how 

35

rich the package of benefits are with respect to the level of a Pell 

Grant or whatever, transparency about choosing an institution, 

issues about quality. 

I mean, I think there is a whole lot of grist for the mill here, and 

I think it would be a missed opportunity if we only jumped on just 

one narrow aspect. And I hope we won’t, and I know we won’t, and 

I really commend you all for the step you took yesterday. 

Mr. MCKEON. I have one final question, and then I want to yield 

time to Mr. Keller, the ranking member on the subcommittee. 

One of the concerns that I have had is that people that are giving 

up their time, they could be working in private industry, but they 

come to work for the government, not so much out of how much 

money they could make or how much power they can enjoy but out 

of a dedication really to serve. 

Madam Secretary, I see from the press that your chief operating 

officer, Terri Shaw, just resigned, although I understand from your 

announcement she told you back in February that she intended to 

resign. Yesterday, The Washington Post quoted Michael 

Dannenberg, a former Kennedy staffer and longtime critic of the 

FFEL Program of saying, ‘‘Her tenure has been characterized by 

lack of oversight and negligent administration of the Student Loan 

Program.’’

And even Senator Obama felt compelled to comment and implied 

that Mrs. Shaw was more interested in helping banks than students. 

Would you care to react to that statement? 

Secretary SPELLINGS. I would, and I want to thank Terri publicly 

for her service these last 5 years as the head of this performancebased organization, the FSA. She is not a political appointee, is not 

confirmed by the Senate, serves in that capacity of one of three performance-based organizations. 

She did come to me earlier this year—her term is expiring this 

summer—and indicated her desire to leave somewhat short of that 

for personal and family reasons. 

She has had a major hand in seeing this organization removed 

from the high risk status that they were under for years and years. 

You all will remember the stolen credit card—I mean, the stolen 

computers and the credit cards and on and on and on, the 61-inch 

television purchased, et cetera, as well as these five clean audits. 

And I think she has given good service to this government. I look 

forward to finding a strong manager and someone with expertise 

to replace her, and we will work hard to do that quickly so we can 

all get about this business of making sure this program is one of 

great integrity. 

Mr. MCKEON. Thank you very much. 

Mr. Chairman, I would like to yield time now to Mr. Keller. 

Mr. KELLER. I thank the gentleman from California for yielding. 

And I thank you for being here, Madam Secretary. 

I am going to ask you a series of specific questions, but to put 

it in perspective, I think there is some confusion that I read about 

in the news media about the $85 billion student lending industry. 

In reality, about $60 billion of that is the Federal Stafford Student 

Loans, which is roughly 70 percent of the $85 billion. And a much 

smaller percentage are these alternative private loans, which are 

36

not federal loans guaranteed under Title IV of the Higher Education Act. 

The principal and almost exclusive focus of the New York Attorney General Cuomo was on these alternative private loans, which 

aren’t governed by the Higher Education Act. 

And when he was here, he talked about students being hurt, and 

I asked him specifically, ‘‘Do you have any evidence of any student 

receiving a federal loan under title IV being hurt as a result of paying a higher interest rate or higher origination fee than the federal 

law allows,’’ and he said, no, he didn’t have any of that. 

He did say that there were one or two schools that only had one 

FFEL lender and he hoped that they would have more. I think we 

can all agree on that. But even then no evidence anyone was hurt. 

So with that as background, let me ask you a few questions. As 

a U.S. secretary of education, do you have jurisdiction to conduct 

oversight and regulation of these alternative private loans which 

aren’t federal loans guaranteed under title IV of the Higher Education Act? 

Secretary SPELLINGS. No, sir, I don’t. 

Mr. KELLER. Okay. And you cannot, on your own, even if you 

wanted to, go out today and promulgate a bunch of regulations 

which essentially say that you want to apply the Higher Education 

Act anti-inducement provision to these private alternative consumer credit loans because you don’t have that legal authority. Is 

that correct? 

Secretary SPELLINGS. That is correct, but I do think it is appropriate that as a member of the president’s cabinet, and I have said 

today that I intend to work with the chairs of the SEC, the FTC, 

the FDIC, among others, to make sure that we have a system of 

integrity throughout the government. 

Mr. KELLER. Right. And, in fact, you know that we passed the 

Sunshine Student Loan Act yesterday by an overwhelming margin, 

which would, for the first time, give you some oversight over some 

of these loans. For example, you would, for the first time, be able 

to issue a fine of $25,000 to colleges or non-federal lenders which 

have violated the provisions of that law. Are you familiar with 

that? 

Secretary SPELLINGS. Yes, sir. 

Mr. KELLER. But as of this date, you don’t have that authority, 

obviously, because we haven’t passed it through the Senate, and it 

hasn’t been signed into law by the president, correct? 

Secretary SPELLINGS. That is correct. 

Mr. KELLER. So with that as background, I was somewhat perplexed at the testimony on April 25 from New York Attorney General Andrew Cuomo, who said, ‘‘The U.S. Department of Education 

has been asleep at the switch. The entity charged with maintaining 

the integrity of the student loan market failed. The failure of the 

department to pass adequate regulations is disappointing and irresponsible.’’

Prior to that testimony by the attorney general from New York, 

Cuomo, on April 25, did he ever call you and say, ‘‘Hey, Margaret 

Spellings, this is your fellow former cabinet member here, and I 

just want you to know that I think you have been asleep at the 

switch as head of the U.S. Department of Education’’? 

37

Secretary SPELLINGS. No, sir, he didn’t. And as I have said, his 

office had one contact with one individual in my inspector general’s 

office around a personnel matter only, which is the subject of an 

inspector general investigation. But that is the only contact we 

have had. We have sent letters, made calls and received late last 

night a letter from his deputy. 

Mr. KELLER. And prior to that April 25 hearing, Attorney General Cuomo never called you to say that you have failed to maintain the integrity of the student loan department? 

Secretary SPELLINGS. No, sir, he has not. 

Mr. KELLER. Prior to April 25, he never called you and said that 

he is disappointed in you and you have been irresponsible as head 

of the Department of Education? 

Secretary SPELLINGS. No, sir, he has not. 

Mr. KELLER. Now, after that appearance, he then went out and 

had a press conference on April 25 and issued a press release, 

which I have here, dated April 25, entitled, ‘‘Cuomo Testifies Before 

House Education Committee on Student Loan Industry. Cuomo 

says Department of Education Asleep at the Switch.’’ And then he 

goes through in three separate times here says that your department has been asleep at the switch. ‘‘I am not quick to criticize, 

but I believe in this case the Department of Education has been 

asleep at the switch.’’

Since that press conference and this press release on April 25, 

has Attorney General Cuomo ever called you to have any discussions with you about improvements you can make? 

Secretary SPELLINGS. No, sir, he has not. 

Mr. KELLER. Okay. Well, I have had a chance to look at the 

record, as you might imagine here, and I can tell you from reviewing it that the U.S. Department of Education under your leadership 

has a far better record of oversight than existing during the Clinton administration. And I could give you several examples but I am 

limited on time so I will just give you one to start with. 

Ever since you have been in charge of the Department of Education, the GAO has removed the Student Financial Aid Office 

from their high risk list for programs which are at risk of waste, 

fraud and abuse. The Department of Education under the Clinton 

administration in 1992 to 2000 was on that list consistently. 

And since Attorney General Cuomo was so critical of you as a 

cabinet secretary, I thought, well, let me just take a look at his 

record. And then I saw that he was the secretary of HUD from January 1997 to January 2001 and guess what? The GAO put his entire department on the high risk list for waste, fraud and abuse. 

So I guess the moral of this story is that people who live in glass 

HUD houses probably shouldn’t being throwing stones. 

Let me ask you a little bit about the direct lending versus FFEL. 

Would you agree with me that there is room for the existence and 

healthy competition for both of these programs, direct lending and 

FFEL, because they improve together customer service and lower 

costs for students and taxpayers? 

Secretary SPELLINGS. I absolutely would, and I think we have a 

lot of good arguments that would show support for that. Lots of 

consumer choice. 

38

Mr. KELLER. Since I have laid out some of the criticisms, let me 

just ask you, do you feel that you have been guilty of lax oversight 

or you have somehow been asleep at the switch? 

Secretary SPELLINGS. No, sir, I don’t. In fact, some have said I 

am the most active secretary of education in these higher ed matters that has been seen for a long time. 

Mr. KELLER. Okay. I believe Congressman McKeon’s time has expired but——

Chairman MILLER. The gentleman’s time has expired. Mr. 

McKeon’s time has expired. 

Mr. Kildee? 

Mr. KILDEE. Yes, sir. I yield 30 seconds to Chairman Miller. 

Chairman MILLER. Well, since the defense of Clinton made me 

do it, I thought we would enter Mr. Clinton’s 2001 budget where 

he also asked for the repeal of the 9.5. 

And the question of whether or not the beat goes on, again, 

Cuomo announced that he has entered into a cooperative agreement today with CIT and Student Loan Xpress where they have 

agreed to join him in the investigation of those two entities on a 

cooperative basis of Student Loan Xpress and of Matteo Fontana, 

the Department of Education official who received stock and other 

benefits from Student Loan Xpress. 

Mr. Kildee? 

Mr. KILDEE. Thank you, Mr. Chairman. 

Madam Secretary, greed is a vice that every human institution 

has to guard against, including the Congress itself, obviously. The 

problem with the student loans and the Reading First really are 

worded in greed. And vigilance is a great guardian against greed. 

We read in scripture, who will watch the watchman? 

One would hope that someone decides the inspector general 

would be vigilant. Oversight within a department really has to 

come from the top down. There are only two people involved in the 

day-to-day administration of the Reading First Program, and most 

of the work was contracted out by the department. 

Why did the department fail to provide the appropriate resources 

to this very vital program, which distributes roughly $1 billion per 

year? And what has the department done to ensure sufficient resources are now being devoted to Reading First? 

Secretary SPELLINGS. Well, Congressman, I think the Reading 

First Program is one of the hallmark accomplishments of No Child 

Left Behind and it has caused great improvement in reading instruction for kids. It is a national program. The contracted efforts 

largely have centered around regional technical assistance to make 

sure that users in states and districts have access to guidance and 

technical assistance as they have implemented that program. 

It was certainly something that we did with expertise from 

throughout the country and in the field. 

Mr. KILDEE. But I think that within the department there was 

a big change. You had two people really in a day-by-day basis 

watching it. Within the department the vigilance has to be there, 

and when the inspector general uncovers these things and the inspector general tells us that matters were such that he had referred much of this problem or some of this problem to the Justice 

39

Department, that is indicative that there could have been greater 

vigilance. 

Secretary SPELLINGS. Well, I certainly agree that there is much 

room for improvement in the oversight of that program. That is 

why I adopted every single aspect of his inspector general’s report. 

I have worked hard to put changes in place, including making personnel changes, instituting training programs for my staff, safeguarding the peer review process, reaching out to states and on 

and on. I do think improvements can and should be made. I think 

it is obviously very detrimental to a very effective program when 

that sort of thing is called into question. 

Mr. KILDEE. Within your department have you asked yourself, 

who is watching the watchman? There has to be a system. It is 

great to have an inspector general, we have inspector generals for 

our departments, but when it reaches that level and we find some 

problems there, there has been some problems above that, what 

structurally have you done to try to avoid those problems in the future? 

Secretary SPELLINGS. Well, I have increased the staff from two, 

that you mentioned, to seven people who work as part of the embrace of the inspector general’s work. I can tell you at the time, 

this early implementation happened, kind of, in the 2002-2003 

timeframe. Obviously, Secretary Paige was at the helm. There was 

a deputy, there was a person who was in charge of elementary and 

secondary education and then Mr. Doherty, who was here before 

you a few weeks ago, who managed the program. 

Mr. KILDEE. Well, I appreciate what you are doing and I really—

wherever there is money and wherever there are people we have 

to say guard against greed, because greed is the root of all these 

things. And I think that your department, you are entrusted with 

an enormous amount of taxpayer dollars for programs that are 

very, very important. And No Child Left Behind Reading First is 

such an important element. 

Secretary SPELLINGS. Absolutely. 

Mr. KILDEE. So I commend you for increasing the number of two 

to seven, but I think you have to help breed an increasing culture 

within the department to watch for these possibilities where greed 

leads to the loss of taxpayer dollars and a weakening of the program. 

Secretary SPELLINGS. I certainly intend to do that, and no one is 

hurt more by that lack of confidence than me and my department 

and the senior management of it and then specifically, kind of, a 

lack of confidence and the ability to invest in these very effective 

programs. And I regret that. 

Mr. KILDEE. Thank you, Madam Secretary. 

Mr. KELLER. I thank the gentleman for yielding. 

I started to ask you, Madam Secretary, if you felt that you have 

done a good job with oversight and I believe you said you think you 

have done a good job with oversight? 

Secretary SPELLINGS. Yes, sir. 

Mr. KELLER. Isn’t it true that you guys have under your leadership already started performing on-site reviews at 44 different colleges with respect to 26 separate lenders relating to the anti-inducement provisions of the Higher Education Act? 

40

Secretary SPELLINGS. Yes, we have. I mentioned that in my opening statement, and I would be anxious to get whatever internal information General Cuomo has that might aid our work in that regard. But we have sent teams to every single one of those institutions, yes. 

Mr. KELLER. Well, I hope you now get a call from Attorney General Cuomo. 

Secretary SPELLINGS. With your help. 

Mr. KELLER. I know the press release that I read was one of 15 

press releases that he has issued only since February 1 on the student loan issue, so I know he has got some free time. I hope he 

picks up the phone and calls you. 

Let me then ask you about some of this allegation of being too 

close with some of the FFEL lenders, because some of the people 

who used to work in the lending industry now work at the Department of Education, and some people are upset about that, which 

to me is like saying if you used to be a farmer and you know what 

you are talking about, you are not allowed to go to work at the Department of Agriculture. 

So with that said, isn’t it true that during the Clinton administration that you had some senior former student lending executives, like Barry Morrow with Sallie Mae and John Reeves as president of a large lender called Educaid who went on and worked in 

the Clinton administration student loan department? 

Secretary SPELLINGS. Yes, sir. There obviously have been people 

from various organizations that have served at the Department of 

Education in this administration and the one previous. 

Mr. KELLER. Okay. And in terms of cracking down, I know you 

had one instance where you put an employee on administrative 

leave when you learned that they had certain stock by a lender, 

and some people might want to inquire, ‘‘Hey, why didn’t you just 

fire that person?’’ Isn’t it true that in reality that person actually 

had acquired that stock well before even joining the Department of 

Education? 

Secretary SPELLINGS. Yes. And, obviously, we count on—I mean, 

the burden is on the individual, as it is on all of us, to complete 

the 278 form to be accurate and honest in the reflection of what 

holdings they have. 

And to the extent that Mr. Fontana did not meet that standard, 

I have asked the inspector general to review that case and have in 

the meantime put him on administrative leave. Obviously, we live 

in a country where you are innocent until proven guilty, and I will 

be glad to report back to this committee about what the inspector 

general finds. 

Mr. KELLER. Okay. Thank you. 

Let me walk through some of the provisions of the Sunshine Student Loan Act, and the reason I want to is I know your task force 

hasn’t reached a final consensus, and so I want to see how comfortable you are with what we have agreed to here. 

First, with respect to preferred lenders, under the Sunshine Student Loan Act, it says you can still have a preferred lender list, but 

you have to have at least three FFEL lenders and you have to explain why they were selected and why it benefits the students. 

41

That is something pretty consistent with your task force recommendations. Are you comfortable with that provision? 

Secretary SPELLINGS. Absolutely. In fact, in my statement, I said 

that I am moving forward and will post those in the Federal Register very shortly, and they will become effective in November. 

Mr. KELLER. Great. Also, the Sunshine Student Loan Act provides a code of conduct which essentially says there can be no conflicts of interests, gifts or revenue sharing between lenders and the 

colleges or their employees. Are you comfortable with that language 

as well? 

Secretary SPELLINGS. Yes, sir. 

Mr. KELLER. Okay. Some people, in light of the somewhat unrelated scandal up in New York, have said that, well, maybe we 

should just completely abolish the preferred lender list and do 

away with it, and I want to ask you about that. 

I am concerned about that approach, because if you are an 18-

year-old freshman in college, the preferred lender list really creates 

order out of chaos. There are over 1,000 lenders, and some of these 

lenders provide very low interest rates, low origination fees, are 

very flexible when you want to defer payments and have great customer service. Other lenders may have higher rates and fees, bad 

customer service and could be characterized as somewhat fly by 

night operations. 

So as long as the preferred lender list is done right, I think it 

is a pretty good idea sometimes to have a financial aid administrator who has been doing that job for 2 or 3 decades to be able 

to give these 18-year-olds some advice on, ‘‘Here are four or five 

lenders that we think are pretty good.’’ Would you agree with that 

assessment? 

Secretary SPELLINGS. Absolutely agree with you. 

Mr. KELLER. Okay. 

I am sorry, my time has expired, Mr. Chairman. 

Chairman MILLER. Mr. Andrews? 

Mr. ANDREWS. Thank you. 

I thank the secretary for her testimony. 

Madam Secretary, you were confirmed in the first quarter of 

2005; is that right? 

Secretary SPELLINGS. That is correct. 

Mr. ANDREWS. And when you were confirmed, was Ms. Shaw the 

chief operating officer of the student aid operation? 

Secretary SPELLINGS. Yes, she was. She is in a 5-year term, 

which will expire this summer. 

Mr. ANDREWS. I assume that you met with her when you first 

came aboard and did you ask her were there any outstanding audit 

issues or problems with her area? 

Secretary SPELLINGS. In January of 2005, we had just been removed from the high risk list——

Mr. ANDREWS. Right. 

Secretary SPELLINGS [continuing]. Which she had worked very 

hard to do, so I was very encouraged by that then recent event. 

But, certainly, I asked her about the work of her operation, as you 

would expect me to as a manager. 

Mr. ANDREWS. Did she indicate that there were any outstanding 

issues from the inspector general of the department? 

42

Secretary SPELLINGS. I don’t remember that we talked specifically about individual aspects of particular ongoing inspector general reports, but, certainly, those have since come to my attention, 

and I do talk with her about it. Whether I did it in January 2005, 

in the first quarter, I can’t recall. 

Mr. ANDREWS. Okay. On August 1 of 2003, Cathy Lewis, assistant inspector general of the department, sent a memo to Sally 

Stroup, called an alert memorandum, and I am going to quote from 

that. 

It talks about a review that had been done and it says, ‘‘Our review,’’ meaning the IG of your department, ‘‘concluded that there 

are bargaining practices between schools and lenders for FFEL preferred loan status and private loan volume that should be addressed through statutory and regulatory changes or further department guidance. Given the current marketing practices by 

schools and lenders, the department should examine the roles and 

responsibilities of schools as well as lenders and lender affiliates in 

the inducement issue.’’

Between your tenure, beginning in the first quarter of 2005 and 

January of 2007, did you take any actions at all in response to that 

report from the inspector general? 

Secretary SPELLINGS. Well, yes, Congressman, absolutely. And 

my inspector general at FSA, there are many, many technical 

things, much of which has been worked through to the satisfaction 

of the inspector general, and some of those remain open. 

Mr. ANDREWS. So what did you do prior to January of 2007 about 

this report? 

Secretary SPELLINGS. Well, I give to you a lengthy list of the various steps that have been taken around particular issues. As I have 

said, some of those have been reached to the satisfaction of the inspector general and some of have not, and we continue to work on 

those. 

Mr. ANDREWS. Well, let me ask you specifically——

Secretary SPELLINGS. But also may I mention quickly that——

Mr. ANDREWS. Yes. 

Secretary SPELLINGS [continuing]. The negotiated rulemaking, of 

course, that we initiated last August is an important thing to call 

attention to, and certainly we put specific language on the table, 

in December, for the negotiators to consider——

Mr. ANDREWS. Did you assign any of the investigators or analysts from the department to do the examination the inspector general asked you to? Did you send them out to look at schools or lenders to see if these inducement payments were taking place? 

Secretary SPELLINGS. We have thousands of monitoring visits 

that occur from year to year. Some of them are in the arena of inducements. You have heard me get asked about administrative capacity and staffing, among other things. 

Mr. ANDREWS. I understand that, but you have a specific recommendation from your inspector general that dates back to August 1 of 2003 when you were not there, when you were not there, 

that says that the specific problem of inducements in the bargaining practices between schools and lenders should be looked at. 

I am asking you to submit to the committee anything that you 

have, any document, any e-mail, any documentary evidence which 

43

shows what the department did in response to that specific report 

of August 1, 2003. Because I see a flurry of activity starting in January 2007 when this becomes a public issue. But I am specifically 

wondering, did you meet with Ms. Shaw and talk about this issue 

prior to January of 2007? 

Secretary SPELLINGS. I spoke with her about many things, including inducements, in the entire operation. I will certainly provide that analysis to you, but I have three examples—April 2004, 

March of 2006 and April of 2007—about three specific issues related to impermissible inducements. 

Mr. ANDREWS. Okay. So what did you do in April of 2004? 

Secretary SPELLINGS. Marketing practices that U.S. Bank National Association violated anti-inducement provisions of the HEA. 

The bank was required to cease those practices, prohibited from 

making payments, required to obtain the pending applications from 

the borrower. 

Mr. ANDREWS. So it sounds like you did have authority to do 

something about it. How many of those enforcement actions did 

you direct the department to conduct between January of 2005 and 

January of 2007? 

Secretary SPELLINGS. I don’t have a specific number off the top 

of my head. I will get that for you. As I said, these are cases where 

that very high hurdle, that very strong threshold has been cleared. 

Mr. ANDREWS. I understand. My time has expired. 

I would just, Mr. Chairman, make the comment that perhaps Mr. 

Cuomo came in and filled a vacuum that existed before this happened, and I would be curious to see whether the vacuum existed 

or not, and I am sure the secretary will show us. 

Secretary SPELLINGS. Thank you, Congressman. 

Chairman MILLER. Mr. Castle? 

Mr. CASTLE. Thank you, Mr. Chairman. 

Madam Secretary, I have a lot of respect for you and the job that 

you have done, but obviously there are some problems here, and 

one of my concerns is how can we resolve some of these issues as 

far as the future is concerned. 

I am looking at the president’s fiscal year 2008 budget request, 

and in it he has some reductions in a variety of categories—special 

allowance lender insurance, exceptional performer, lender paid 

origination fee, collection retention, et cetera. 

I assume this was prepared with consultation with your department and that you are in favor of all of these changes; is that correct? 

Secretary SPELLINGS. Yes, that is right. 

Mr. CASTLE. Are you also in favor of all of the changes in the bipartisan Student Loan Sunshine Act, which was the bill we passed 

yesterday, in case you don’t recognize the name? 

Secretary SPELLINGS. I do recognize the name, and I think it is 

a great step in the right direction, Congressman. 

Mr. CASTLE. Yes. I actually do too, and I congratulate the chairman and the ranking member for their good work as far as that 

is concerned. 

I will tell you my problem with all of this: I mean, I don’t like 

the lending problems, I don’t like the conflicts we have heard 

about——

44

Secretary SPELLINGS. Me neither. 

Mr. CASTLE [continuing]. Either within or without the department. All these things concern me a great deal. 

I have been on this committee for a while now, and to me it is 

very confusing to really be able to follow the bouncing ball with all 

these different programs. You indicated, I think, there are 20 programs which aid students earlier, and you indicated there are layers and layers of inefficiencies. And you also said that you are convening chairs to end student abuse and I know you have had some 

things going on with respect to that. 

Don’t we need a big bang solution here? I mean, do we have too 

much out there in terms of the offerings? I mean, I am just really 

surprised at all the different methods by which a private lending 

institution can make money in this. 

I mean, I think even I could put together a lending institution 

and make money on it with these provisions. Not that anybody 

would be dumb enough to borrow from me, but it just seems to me 

that there are a lot of problems with respect to that. There is a lot 

of conflict with the Direct Lending Program versus using the private banks. 

Should we be doing something different to make it simpler? I 

mean, I am all for transparency, I think it is highly important, and 

choice, but is it just such a complicated system that we have put 

together that it just doesn’t work well for the students and their 

families? 

Secretary SPELLINGS. I think, absolutely, and I think the student 

is the one that suffers. You have seen my picture over here of all 

the various aspects here, the various grants, the various loans, and 

then on top of whatever state aid there is or institutional aid. So 

it is highly complex and confusing. 

I have fairly recently issued an RFP to take a look at a more 

comprehensive system of streamlining how that might work, just 

as a matter of good policy and sound management, but I do, I think 

it is very, very complex for the borrower and subject to abuse, particularly in a time of rapidly increasing costs, which is much and 

much less covered by federal grants. 

Mr. CASTLE. Well, I would hope in all this, I mean, I hope we 

would really push on simplification, which I hope would reduce bureaucracy, inefficiency and then reduce some of the costs of all of 

this, particularly to the consumer, so, ultimately, we could have 

lower interest rates, which are guaranteed after all, but lower interest rates being paid by these students and by their families. 

But let me change subjects for a moment here. You mentioned 

in your opening that I think in the last 25 years the cost of college 

has gone up 400 percent. 

Secretary SPELLINGS. Four hundred percent. 

Mr. CASTLE. Which is far above the cost of living. And I don’t 

know what that would be on a compounded basis, but it would be 

14 or 15 percent or something of that nature, which to me is astounding. And I have talked about this before, but I have never 

really been satisfied with it. And it just seems to me that you have 

the bully pulpit, we have the bully pulpit, the president has a bully 

pulpit, that this is more than just problems in the lending industry. 

45

And I would hope that as part of this overall problem of simplification and trying to deal with the lending practices, that we 

could also try to work on holding down the costs of higher education and use these bully pulpits to make sure they understand 

that they have got to keep their cost reductions in line, at least 

with the cost of living, if not less. 

Is anything happening along those lines at this time? 

Secretary SPELLINGS. Yes, and I think, absolutely, use the bully 

pulpit, but I think we ought to do more, and I think a big first step, 

a great first step is more transparency. The president asked for $25 

million to start doing some pilot programs about better data and 

information systems so that parents can be confident when they 

look at information in the IPEDS database about completion rates, 

about post-graduate employment and things like that that might be 

brought to bear for more effective, more prudent consumers. 

In addition to that, we have asked for resources and some of this 

is going on in the field, and I appreciate that leadership. As to the 

value added by the learning experience, after a mom or dad spends 

hundreds of thousands of dollars for an education, is their kid coming back home to live with them or did they actually know how to 

think, cipher, write, compute and so forth that is going to be necessary for the workforce. 

So I think we have to have a lot more information, and I think 

that will be a good first step in helping get a handle on some of 

these cost issues. 

Mr. CASTLE. Thank you, Madam Secretary. 

Thank you, Mr. Chairman. I yield back. 

Chairman MILLER. Mr. Hinojosa? The gentleman is recognized 

for 5 minutes. 

Mr. HINOJOSA. Thank you, Mr. Chairman. 

Madam Secretary, the actions that you have reported taking for 

the Reading First will primarily address the future management 

and the operations of that program. However, the current impact 

of the conflicts of interest and the inappropriate involvement in 

curriculum by the department and its contractors has not been addressed. 

What affirmative steps will your department take to inform the 

states that were coerced into using certain products that they may 

have the option of expanding or modifying their Reading First Program to incorporate other tools and materials that are researchbased? 

Secretary SPELLINGS. In the aftermath of the inspector general’s 

report, which I told you I embrace completely, at his suggestion, 

and I certainly heeded it, had engaged with each and every single 

state in our country about areas where they found problems or recommended improvements, and we have done that. And I am 

pleased to report that the vast majority of states and school people 

are highly supportive of Reading First. 

Can we make improvements? Should we make improvements 

with respect to subcontractor relationships, as has been brought to 

bear by the investigation yesterday? Yes, we can and we should. 

But I also want to put in the context that this is a state program. 

We fund states who then, in turn, make decisions as to local school 

districts about curriculum products that are purchases by them or 

46

by the state. It is usually by the school district. And so I am not 

sure yet, and certainly intend to look at very carefully, about particular ethical violations that might have occurred in that context. 

But if it has, I certainly intend to take strong action about it. 

Mr. HINOJOSA. So will you ask and inquire as to see what individuals in different states, such as my state of Texas, did things 

that were unethical and that were not under your instructions? 

And if so, what actions are you going to take to penalize them? 

Secretary SPELLINGS. The allegations that have been brought to 

our attention have to do with the potential conflicts of those who 

were offering technical assistance in a regional sense, and I intend 

to investigate those. I do not have evidence as of yet that there has 

been any violation or misdeed by any state official with respect to 

that. In fact, this law builds in a lot of authority for states to make 

curriculum decisions and purchase products as they see fit, and 

they have across the gamut of various products and programs. 

Mr. HINOJOSA. I want to now go to the student loans. This administration focused on culture of accountability for state education 

agencies, school districts and now colleges and universities. However, when it came to enforcing and regulating against prohibited 

inducements, your department’s preference was to have the lending 

community police itself. Why this double standard, and who should 

be held accountable in the administration for failing to curb these 

abuses? 

Secretary SPELLINGS. Congressman, I would disagree with your 

assessment that we let the lending community police itself. We 

have conducted thousands and thousands of reviews and program 

audits. We have assessed fines. We have sanctioned and cited various violations, including the three that I just mentioned to Congressman Andrews about inducements. 

Can we do more, should we do more? You bet. I am an accountability-oriented person, and that certainly applies to the student 

loan business as well. 

Mr. HINOJOSA. Well, on this question, we will just have to agree 

to disagree, because there is too much evidence of wrongdoing. 

Now, I will ask you another question on the use of private loans. 

Private student loans have become a larger percentage of the new 

loans over the last few years. Do you believe this is and should be 

a concern, and should they be allowed to flourish unregulated in 

this current environment? 

Secretary SPELLINGS. Well, I do agree that, as I said, in this sort 

of complicated process as the Pell Grant has failed to keep up with 

the very rapidly increasing cost of college, there has come to be 

more reliance on the private loan sector. Those loans are not overseen by me and my department but by other regulators—the FTC, 

SEC, Federal Reserve and on and on—as well as state attorneys 

general as part of their deceptive trade practices or whatever banking laws and consumer loan laws might apply in those particular 

cases. 

Mr. HINOJOSA. Your chart indicates that it has about $16 billion 

worth of business——

Secretary SPELLINGS. That is correct. 

Mr. HINOJOSA [continuing]. And growing very rapidly. So it 

seems to me that if your department doesn’t have authority and 

47

oversight and our committee doesn’t either, then there will be another committee, Financial Services, that could certainly look into 

this and take whatever action necessary to regulate them. 

Secretary SPELLINGS. I hope they will. As well, I said I would 

convene my colleagues from those various other agencies, and you 

all certainly took some steps yesterday in the passage of the law 

that Congressman Miller authored. 

Mr. HINOJOSA. I yield back. 

Secretary SPELLINGS. Mr. Fortuno? 

Mr. FORTUNO. Thank you, Chairman Miller. 

And thank you, Madam Secretary, for being here with us today. 

I appreciate, certainly, you taking the time to address very important issues as to the laws in Reading First. However, as the only 

congressman from Puerto Rico, I will try to bring it closer to home, 

if I may, certainly as it relates to Reading First and related programs in my district, in Puerto Rico. 

I am very concerned with the chronic mismanagement within the 

Puerto Rico Department of Education, and my concern is that over 

575,000 American citizens who attend the public school system in 

Puerto Rico are being shortchanged while very few in San Juan 

and Washington seem to care about their fate and the improper 

use of taxpayers’ money by the Puerto Rico Department of Education. 

Time and time again I have raised before this committee and 

your staff clear evidence that the Puerto Rico Department of Education is underperforming. I must have a parentheses here. I must 

commend Julia Phillips from your congressional relations staff. She 

has tried really hard, and we will keep trying really hard, and that 

is what I am trying to get to. 

But let me give you some examples. First, there exists clear evidence that the Puerto Rico Department of Education is not complying with AYP requirements. This past March, your department 

sent two letters to the department down there detailing violations 

of NCLB’s AYP requirements and stated they will withhold over 

$800,000 as administrative fees in punishment. Clearly, the Puerto 

Rico Department of Education is not meeting NCLB standards in 

this case. Actually, less than half of the public schools there are 

meeting it. 

Are you aware, Madam Secretary, that—and I would like to certainly have some questions to be answered at the end in writing, 

ideally—that of all jurisdictions within our nation, Puerto Rico Department of Education sends the most funds back to Washington 

annually? In the past 2 years, the department has returned over 

$35 million in federal funding to the U.S. Treasury due to mismanagement. 

Additionally, the department at the state level has consistently 

ignored the needs of our special education students. In March 21 

of this year, the Education and Labor Committee hearing here, I 

shared letters with Chairman Miller and Ranking Member McKeon 

from Ms. Maria Miranda, who is the director of the Technical Assistance Program at the University of Puerto Rico, and Mr. Alpidio 

Rolon, who chairs the Puerto Rico chapter of the American Federation of the Blind. 

48

In his letter, Mr. Rolon wrote, ‘‘The Department of Education’’—

he is talking about the Puerto Rico Department of Education—

‘‘states that 29 blind students out of 439 received brail books during 2006-2007, clearly, failing their responsibility to the students 

with special needs.’’

Puerto Rico is also the only jurisdiction in the nation not to participate in the Reading First Program, believe it or not, a key 

NCLB program designed to assist students attending K through 

third grade. Puerto Rico is standing to lose more than $207 million 

in federal funding due to both their refusal to comply with federal 

guidelines and repeated failure to submit successful applications. 

And, finally, the recent NAEP scores are dismal. NAEP results 

also show that the majority of students in Puerto Rico fall short of 

demonstrating basic achievement in math, which indicates partial 

mastery of the knowledge and skills needed for proficiencies in the 

subject. Only 9 percent of fourth graders and 4 percent of eighth 

graders reach basic level. Less than 1 percent of students reach the 

proficient or advanced levels of achievement. These are among the 

lowest scores in the nation. 

Madam Secretary, I have three questions for your, and I would 

rather, if it is possible, have answers for the committee in writing. 

I know that you are probably not prepared to address them all. 

First, in your view, what continues to be the chronic problems 

that plague the department in Puerto Rico and prevent them from 

doing a better job? Specifically, how do you and your department 

plan for better federal oversight of the Puerto Rico Department of 

Education, given what I told you? 

Second, my staff and the Congressional Research Service have 

had continual problems obtaining reliable data on NCLB implementation in Puerto Rico. My staff was advised by your staff that 

Puerto Rico only recently agreed they needed to update their data 

collection systems. The question is, what progress have they made 

in that area and what will your department do to have them get 

their act together? 

Thirdly, how is your department helping them increase staff retention in the Puerto Rico Department of Education? That is another, actually, item that has been brought to our attention, and 

they are having serious problems in retaining staff. 

So, Madam Secretary, I would appreciate it if you could send us 

back those answers. 

Secretary SPELLINGS. I would be glad to do that, Congressman. 

And it is a very regrettable and sad situation, especially for the 

kids in Puerto Rico. As you have said, they lack capacity in personnel, and they lack capacity in data and management. As I know 

you want me to be a good steward of federal tax dollars, they have 

to right the ship if they are to participate in programs like Reading 

First. 

And I pledge to answer those questions and look forward to our 

work together and your leadership to right the ship there. And I 

appreciate your interest. 

Mr. FORTUNO. Thank you, Madam Secretary. 

I yield back. Thank you. 

Chairman MILLER. The gentleman’s time has expired. 

Mr. Tierney? 

49

Mr. TIERNEY. Thank you, Mr. Chairman, Madam Secretary. 

Madam Secretary, I am somewhat concerned about the whole 

Nelnet situation, the special allowances payments on that. I just 

look at the history of the failure of the department to send out a 

clarifying letter over a period of time, though it belatedly did, but 

I also note that on a Friday afternoon is when the decision came 

down. We all know what Friday afternoons are in terms of announcing decisions of what we are going to do. 

But the department decides to allow the company to keep $278 

million. It boggles my mind why we don’t get the entire amount of 

money back and what the excuse was to allow somebody to get 

away with essentially theft of the situation and not take the whole 

thing back, as your inspector general’s report clearly indicated 

should be done. 

Secretary SPELLINGS. Well, Congressman, I don’t know that you 

were in the room at the time, but, obviously, as I settled this lawsuit, could we have taken a different point of view, and you may 

have, certainly, that is the case. 

But let me tell you the facts as I know them, which is that we 

had continued to pay that organization, as well as others, quarterly 

special allowance payments under the transferring provision, a 

legal authority for first and second generation loans. It was discovered by my inspector general that that organization had abused 

provision and was doing something other than that. You all have 

previously——

Mr. TIERNEY. But they also discovered that back in 2005 with respect to another organization, so it is not like this is the first eye 

opening that the department had. 

Secretary SPELLINGS. There are four parts of the special allowance payments, and so various ones of those were implicated 

throughout the investigation in New Mexico and Nelnet in this 

case. 

The reason that I settled this lawsuit, to get to your fundamental 

question, is because there was a risk of an additional nearly $900 

million that this government was at risk of losing had we lost the 

lawsuit. This law has——

Mr. TIERNEY. So you totally disagree with your inspector general 

who made a clear indication that they didn’t think that that risk 

was there and that you ought to collect the entire amount. And 

that is also not the reason that Ms. Tucker gave on her Friday 

afternoon expose on here when she indicated that she thought it 

was because it would jeopardize the financial status of some small 

nonprofit lenders on the situation, which would boggle the mind, 

I think, if she is arguing that there is some shortage of capital out 

there on the situation. 

Secretary SPELLINGS. Well, obviously, this particular issue and 

case has implications for nonprofit and for-profit organizations 

other than Nelnet. 

Mr. TIERNEY. I hope you are not arguing seriously that there is 

some shortage of capital out there that means that we should tolerate theft in order to resolve this. 

Secretary SPELLINGS. No, clearly not. I made the judgment that 

it was better to end, finally and with certainty, this practice, to deVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00053 Fmt 6633 Sfmt 6602 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
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scribe a methodology that the industry could apply across the 

board. 

Mr. TIERNEY. I hear what you are saying. I mean, I think you 

were extremely belated in doing that, given the history of this 

thing, but tell me what you didn’t have confidence in with respect 

to your inspector general’s report who had the exact opposite conclusion that you reached. You don’t have confidence in your inspector general? 

Secretary SPELLINGS. No, I have a great deal of confidence in my 

inspector general. I don’t agree with him 100 percent of the time 

on every matter. 

Mr. TIERNEY. Well, I am going to leave it at that, but I am entirely uncomfortable with this, for the whole scenario of how it occurred, the Friday afternoon release, the large amount of money 

that was given here, the total disagreement with the inspector general on this. I think it is very weak, the presentation that you 

make on that, and I think we should all be careful. 

Mr. Chairman, I hope that we do some more oversight on that 

issue alone and how many people were allowed to just take the 

money and run as a result of that decision, which I think that 

maybe we could have the inspector general in to find out what it 

is that the secretary and the inspector general don’t seem to jive 

on. 

Because you agreed in one instance, and when you took back a 

certain amount of money you found that you were in total agreement with his decision. Just going forward you apparently had 

some problems letting them keep the money. 

Mr. Chairman, I yield to you if you have some additional questions. 

Chairman MILLER. In your request, there is a bipartisan request 

in to further proceed on the Nelnet matter, given the range of the 

money. 

I am just a little concerned here that somehow the problem here 

is Andrew Cuomo, and I just want to state for the record, I think 

but for the attorney general of New York, Andrew Cuomo, we 

wouldn’t be here today. We would not have passed the Sunshine 

Act, and the public would not be aware of the outright incredible 

unethical, at a minimum, behavior, I think criminal behavior in a 

number of cases, that not only is he investigating but attorney generals all over the country and the U.S. attorney are taking a look 

at where people have bribed their way onto campus. 

And to suggest that somehow he only dealt with the private 

loans when in fact he told this committee that they are connected, 

and we know that, well, they are connected when the person says, 

‘‘We will give you private money if you give us more federal access 

to the program,’’ as Sallie Mae did, and when you blew the whistle 

on them, they promised never to do that again. Other lenders have 

been yelling about that practice for a long, long time. 

So there was a connection between access to private lending, to 

campus and the federal program, and among the larger lenders 

those programs have in fact been coupled. 

And the suggestion that somehow that the problem is here that 

Andrew Cuomo, who used to be the secretary of HUD, where, by 

the way, he received many, many awards from national organizaVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00054 Fmt 6633 Sfmt 6602 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
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tions for innovative leadership of that department, is outrageous to 

suggest that. 

I suspect that the parents who are borrowing this money and the 

students who are borrowing this money are very happy to have Mr. 

Cuomo blow the whistle on this activity. I wish that somebody else 

had done it prior to his doing it, somebody with direct oversight of 

the department, but that didn’t happen. 

And since we are in a revisionist history here, let the record 

show that but for the actions of Mr. Kildee and Mr. Van Hollen 

who dogged on the floor the 9.5 problem, there would have never 

been legislation on the 9.5, in spite of the recommendation of the 

Clinton administration, in spite of the recommendation of the Bush 

administration. Because the 9.5 lenders had it about the way they 

wanted it in the Congress, but, finally Mr. Kildee and Mr. Van 

Hollen got the amendment accepted in HHS and the rest is history 

as to what took place there, finally in 2006, 2 years later, after Kildee and Van Hollen had dogged them down. 

So I would just like to straighten that part out of the record. 

And Mr. Petri is recognized for 5 minutes. 

Mr. PETRI. Thank you very much, Mr. Chairman, and I will be 

submitting additional questions for a response for the record by the 

secretary. Time is limited at this particular occasion. 

Madam Secretary, you kind of inherited a whole series of programs and our legal framework, and I know you are doing your 

best within that to operate the department. I would like to explore 

a little bit more with you the subject that has been raised by the 

chairman and several others, and that is the Nelnet situation. 

They submitted, as I understand it, some $1,100,000 worth of reimbursements under a 9.5 percent arrangement and did receive 

some $278 million that they had and then you entered into a settlement with them to basically stabilize the situation where it stood, 

and they agreed to give up their additional claims for the remainder of the $1.1 billion and the department agreed to not ask for the 

$278 million back. 

And as the chairman pointed out, if they were confident that 

they could have got their $1.1 billion total, they probably wouldn’t 

have agreed to this agreement. So there is clearly somewhat of a 

grey area. 

The inspector general recommended that we attempt, as a government, to collect the whole amount back, but there was some element of uncertainty here, and you entered into that settlement. 

We asked the Congressional Research Service to review the 

whole thing, and they basically seemed to indicate to us in their 

study that your authority is total and complete. It is not subject to 

review by us within the existing law, by the Justice Department or 

anyone else. And that is not your fault, that is our fault, really. 

And we have a system with checks and balances. There are a 

number of other outstanding claims, and under the current situation, you are going to have to enter into a final agreement that presumably could be subject to no challenge. So you signed a check, 

in effect, for $278 million of taxpayers’ money. You have the authority to enter into similar agreements that cannot be reviewed or 

challenged by anyone under current law for I don’t know how 

much. 

52

Perhaps you could say how many outstanding claims are you reviewing and, secondly, whether you think this is really sound or 

whether we ought to review that and figure out if there can be 

some sort of system of checks and balances or where the Justice 

Department or some other people could do an independent analysis 

or review to see if they think the government should pursue these 

claims or they should throw upon you who may not even have legal 

training the authority to enter into contracts that are final. 

Secretary SPELLINGS. Well, I certainly can do that. As you said, 

I do have the authority to enter into agreements such as this. This 

is an $85 billion enterprise. Two-hundred-seventy-eight-million dollars, I guess some might suggest, I certainly would, that we may 

have saved the taxpayers another 800-and-some-odd-million dollars 

in payments had we lost the lawsuit. 

But, certainly, we can get you——

Mr. PETRI. On that point, it is my understanding—I could stand 

corrected—that, actually, Nelnet reserved the right to reopen the 

agreement, but the Education Department gave up the right to reopen the agreement, and it is final so far as the government is concerned. 

Secretary SPELLINGS. And to the extent that you would like us 

to look at various authorities that I have in comparison with other 

departments and agencies, we can certainly do that or the GAO 

can do that. 

But, I guess, one of the things, and I certainly don’t mean this 

facetiously is, as a policymaker and administrator, on the one 

hand, I hear you say, take immediate, aggressive action to stop X, 

but don’t use your judgment as the primary authority over these 

programs to use it. 

Mr. PETRI. Well, ma’am, you didn’t have to enter into an immediate agreement. You could have just stopped payment and let 

them sue you, and we would have been no worse off. So that is not 

necessarily the case. 

Do you have an idea of the total amount of potential claims that 

are outstanding under this, similar to Nelnet? 

Secretary SPELLINGS. I certainly can get that. 

Mr. PETRI. How much more are we talking about? 

Secretary SPELLINGS. Obviously, there are many other lenders 

that would be subject to that. That is why this final and certain 

methodology that the inspector general endorsed was so important 

to bring to bear virtually simultaneously in doing that. 

But, absolutely, I can get that information for you. 

Mr. PETRI. Thank you. 

Chairman MILLER. Mr. Bishop? 

Mr. BISHOP OF NEW YORK. Thank you, Mr. Chairman. Thank you 

for holding this hearing. 

And, Madam Secretary, thank you for coming and giving us so 

much time this morning. 

I certainly share the concerns that my colleagues have raised 

with respect to the level of oversight on the student loan issue and 

on Reading First, but I want to focus in on an area that is very 

troubling to the higher ed community, somewhat more obscure, but 

has to do with a subject that you have raised a few times this 

morning, and that is the negotiated rulemaking. 

53

It is my view, and I think this is shared broadly across the higher ed community, that the department is using the negotiated rulemaking process to achieve by regulatory means that which the department has been unable to achieve by legislative means. 

And I think there are three examples of this, what the department is attempting to do right now with transfer of credit policy, 

what the department is attempting to do in terms of what has been 

characterized in certain newspapers as a slow bleed of the Perkins 

Loan Program and, lastly, what the department seems to be attempting to do to impose what appears to be a uniform standard, 

sort of a national level of competence that all college students 

would be expected to adhere to, as administered through the accreditation process. 

And let me just take the transfer of credit. My understanding is 

that the current negotiated rulemaking process goes forward under 

the aegis of allowing regulations to conform to the Higher Education Reconciliation Act of 2005. That act contains not a single 

mention of transfer of credit policy. Transfer of credit policy is an 

issue that is under active consideration in this Congress. In fact, 

there was language in the Higher Ed Act that passed out of this 

committee. 

Congressman Souder and I offered a bipartisan amendment to 

strip that language, but now the department is attempting to reimpose that language by virtue of this negotiated rulemaking process. 

And I would like you to comment on that. Why is this something 

that falls to the authority of the department and doesn’t remain 

within the legislative authority of the Congress in your view? 

Secretary SPELLINGS. Well, the Congress, obviously, has the authority to trump any and everything at the U.S. Department of 

Education or any department at any time. The negotiated rulemaking is such and is so lengthy to allow for lots of public commentary and so forth. It followed on the heels of a year-long commission report that I had initiated and so forth. So a lot of public 

awareness and public debate occurred on these various issues. 

These issues are certainly not——

Mr. BISHOP OF NEW YORK. If I may interrupt, if the department 

is interested in transfer of credit, for example, the 1998 Higher Ed 

Act mandated that the department conduct a study of transfer of 

credit policies and their effect on student enrollment. That study 

has never been conducted. 

Why doesn’t the department conduct that study as opposed to attempting to circumvent the legislative process and impose through 

regulatory means whatever the department’s agenda is? 

Secretary SPELLINGS. Well, we can certainly bring to bear information that we have about the implications of transfer of credit for 

students and taxpayers, and we will do that. 

Mr. BISHOP OF NEW YORK. Okay. But will you allow the negotiated rulemaking process to go forward or will you allow the Congress to work its will? We are going to undertake and pass a Higher Ed Act that will address the issue of transfer of credit, which 

is where it rightly belongs, here in the Congress. 

Secretary SPELLINGS. I hope you will do that. Nobody would be 

more excited for the Higher Ed Act to be newly reauthorized than 

the secretary of education. 

54

Mr. BISHOP OF NEW YORK. I think some of us might be excited. 

Secretary SPELLINGS. But, obviously, I am going to proceed with, 

as I have told you, particularly in light of these various issues related to financial oversight and stewardship, a prudent negotiated 

rulemaking process on these issues. Have they concluded yet? Will 

there be opportunity for public comment and so on? Are these 

issues far from finally resolved? Absolutely, they are not, but the 

process is ongoing. 

Mr. BISHOP OF NEW YORK. Even though the Congress would retain the right to impose their legislative will. 

Secretary SPELLINGS. When the Congress imposes their legislative will, that will certainly trump any and all efforts with respect 

to a negotiated rulemaking, including the law that you passed yesterday. 

Mr. BISHOP OF NEW YORK. And you position, I take it, would be 

the same on the issue of accreditation? 

Secretary SPELLINGS. Yes, sir. As I said, the process is ongoing. 

No final decision has been reached about the issues that you are 

concerned about and raise. But I precipitated the public debate 

around those issues in the absence of a statute last August and 

through the spring of this year. They are not complete. 

Mr. BISHOP OF NEW YORK. And that public debate is pursuant 

to the issuance of the report, the so-called Spellings commission report? 

Secretary SPELLINGS. The initiation of the rulemaking was, in 

part, out of that, as well as these issues that have been raised. I 

used the negotiated rulemaking process to investigate a series of 

issues. 

Mr. BISHOP OF NEW YORK. I just want to assure you that this 

Congress is going to address in the Higher Ed Act these issues 

from all vantage points that you are attempting to address via the 

regulatory process. We are going to exercise our legislative authority to address these issues. 

Thank you very much. I appreciate your time. 

Secretary SPELLINGS. Thank you. 

Chairman MILLER. The gentleman’s time has expired, and all 

time for this hearing has expired. 

Madam Secretary, thank you very much, one for agreeing to appear before the committee today. Thank you for answering the 

questions of the members. Especially thank you for staying an additional time due to the interruption we had with the votes. 

I thank you for all of your responses. I think you can see the 

level of concern by the committee. You share that concern. You 

made that clear today. 

I want to, again, make it clear that this is a hearing on oversight 

of this department, which you happen to head at this time, but, as 

you heard, many of the concerns here predated you, and these 

problems started to grow in intensity and in concern and in different levels of activity by people who should be working to serve 

the students and families of the Student Loan Program or the districts under Reading First. They have got crossways in this system. 

There are other ongoing investigations of some of these personalities and some of the audits done. We will continue that effort, and 

we look forward to your cooperation. 

55

This is about this committee moving forward. We wanted to demonstrated that with the passage of the bipartisan bill and inclusion 

of suggestions that Mr. Keller made and Mr. McKeon had made 

and others, because we think that there is just very little distinction on our commitment to the integrity of the Student Loan Program. 

Mr. McKeon apologized for leaving. He had a leadership meeting 

where I think there were some votes to be taken within the leadership and he had to leave early, but he left it in the very capable 

hands of Mr. Keller. 

And thank you very much for your time and your consideration. 

I know there were some questions that people wanted to get for the 

record, and we will transmit those to you, and we look forward to 

the answers. 

Secretary SPELLINGS. Thank you, Mr. Chairman. I appreciate it. 

Chairman MILLER. Thank you. 

[Additional submissions for the record by Mr. Miller follow:]

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mil1-1.eps
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mil1-2.eps
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mil1-3.eps
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[VIA FACSIMILE], 

May 16, 2007. 

Hon. MARGARET SPELLINGS, Secretary of Education, 

U.S. Department of Education, Washington, DC. 

DEAR SECRETARY SPELLINGS: Thank you again for testifying at the May 10, 2007 

hearing, ‘‘Accountability for the Department of Education’s Oversight of Student 

Loans and the Reading First Program.’’ As discussed during the hearing, the Committee would appreciate your assistance in providing written responses to the enclosed questions to ensure that the Committee’s hearing record is complete. We 

would appreciate your responses in Word format, no later than May 24, 2007. If you 

have any questions, please do not hesitate to contact Michael Zola, Chief Investigative Counsel for the Committee at (202) 226-9403. 

Sincerely, 

GEORGE MILLER, 

Chairman.


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60

Representative Jason Altmire (D-PA) has asked that you respond to the following 

questions:

1. The former Reading First Director, Chris Doherty, was referred to the Justice 

Department because he had a conflict of interest coming into the Department of 

Education that he did not properly disclose. Mr. Doherty’s wife works for an organization with ties to a specific reading methodology and with ties to reading products. 

Can you please explain why the Department failed to properly address this conflict? 

2. When was the first time you learned that Mr. Doherty’s wife worked for an organization with ties to reading products? What did you do about it? 

3. What steps will the Department take going forward to proactively identify and 

address conflicts of interest among its own employees? 

4. What was your role in the implementation of Reading First while you served 

in the White House? 

5. Did you play any role in selecting program officials, contractors, sub-contractors, or consultants? 

6. Did you ever have discussions with Beth Ann Bryan, Douglas Carnine, or Reid 

Lyon about Reading First prior to joining the Department? What specifically did 

those conversations entail?

Representative Robert Scott (D-VA) has asked that you respond to the following 

questions:

1. Are you aware that Kentucky made changes to its Reading First grant application to eliminate certain reading programs before receiving their federal grant? 

Have you submitted inquiries to states to determine which, if any, additional states 

changed their Reading First grant application to eliminate certain reading programs 

before receiving their grant? Assuming that such changes were made, what remedies will be available for organizations that were eliminated in grant applications? 

2. What campaign contributions were made by Nelnet in the two years prior to 

the company’s settlement with the Department?

Representative Donald Payne (D-NJ) has asked that you respond to the following 

questions:

1. The purpose of the National Student Loan Data is to serve as a central repository on student loans for lenders, guarantors, schools, borrowers, and the Department to update and obtain information needed administering the student loan programs. This is not the case of someone hacking into a government database; the Department must approve all users and monitors their use. How do you justify the fact 

that for the nearly a month, the vast majority of users who have done nothing, have 

not been able to use the system to administer the loan programs? 

2. Last year, there was a significant backlog in Consolidation loan processing because of unexpected guidance that the Department issued in April, which Congress 

later overturned by repealing the ‘‘single holder rule.’’ Your decision to lock lenders 

out of the NSLDS seems to be creating another backlog this year. What are you 

going to do to restore access to the system now and avoid causing another situation 

which results in borrowers waiting months to be able to lower their monthly payments using Consolidation loans? 

3. The Department notes that it has begun to restore access to the system. How 

many lenders have been allowed to regain access to the system? Why hasn’t the Department provided lenders with information and a timeline for restoring access? 

4. Before you made your decision on April 17th to lock lenders out of the system, 

didn’t the system already record each access of every borrower’s record, noting the 

time and user who accessed a borrower’s record? Why wasn’t this enough information for the Department to be able to investigate whether users were not properly 

accessing records? What has the shut down accomplished that couldn’t have been 

done while still maintaining access to users in compliance? 

5. Were any security breaches by unauthorized users identified by the Inspector 

General before you made your decision on April 17th? 

6. Have there ever been any instances of identity theft attributable to a user accessing NSLDS? 

7. With regard to the charge that lenders were using the system for marketing, 

are lenders able to obtain a borrower’s address from the system? Phone number? 

E-mail? How can the system be used for marketing, if it contains no contact information on borrowers? 

8. Can you confirm that lenders able to obtain from NSLDS lists of borrowers at 

a given institution who have outstanding student loans? 

9. Can a user access a borrower’s record in NSLDS without already knowing the 

borrower’s social security number? 

61

10. Were you aware that your decision would result in certain lenders not being 

able to verify borrowers’ eligibility for consolidation loans or would significantly disrupt the loan consolidation process? 

11. What specific threat did you believe you were addressing when you made the 

decision on April 17th? 

12. Are you aware that the shut down of the system benefits large lenders who 

already hold a borrower’s loans such as Sallie Mae, Nelnet, and the Department’s 

Direct Loan program, since they do not need to access NSLDS in order make Consolidation loans to their borrowers? Why would you take an action that would limit 

a borrower’s choice of lender, when clearly it is the intent of this body to offer borrowers the broadest degree of choices?

Representative Howard ‘‘Buck’’ McKeon (R-CA) has asked that you respond to the 

following questions: 

Student Loans 

1. Chairman Miller has recently sent some marketing documents to the Federal 

Trade Commission in order to determine if such documents are deceptive marketing 

material. I have seen some of those materials and they look fairly deceptive to me. 

Has the Department sent such marketing documents to the FTC in the past and 

what was the response? 

2. Madam Secretary, you have been criticized for not enforcing the inducement 

prohibition in the Higher Education Act. We know that the Clinton Administration 

took an action against Sallie Mae which was decided in Sallie Mae’s favor by an 

administrative law judge in 1996. For the record, do you know how many other enforcement actions were taken by the Clinton Administration with respect to inducements? 

3. Madam Secretary, has your administration taken any such actions against 

lenders or other parties? 

4. One of the things Chairman Miller has asked you to implement is ‘‘emergency 

regulations’’ to put an end to some of the practices that have been in the media lately. To your knowledge, has the Department ever enacted ‘‘emergency regulations?’’ 

Does the Department even have the legal authority to enact ‘‘emergency regulations’’ for an activity like this? 

5. There seems to be a lot of confusion about what is a prohibited inducement 

even though the law is clear about not paying a school for loan applicants. The Department issued guidance explaining the law when it was first enacted and it has 

not significantly changed since its enactment more than 15 years ago. Do we have 

a problem with the law or is this really more of an ethics issue for colleges? 

6. The bill we passed yesterday addresses the ethics issue but it did nothing to 

address the statutory provision on inducements so if this is a problem with the law, 

what should Congress do to solve the problem? 

7. While the press has been pointing to a report by the Office of the Inspector 

General that alleges that the close relationship the Office of Federal Student Aid 

has with lenders and guaranty agencies has impeded FSA’s ability to do proper compliance and oversight of these entities, that is not what I have seen or heard from 

companies in my state. What are your thoughts on this? 

Reading First 

8. From the various reports that have been released, including the report issued 

by Senator Kennedy yesterday, it is clear that mistakes were made in the implementation of the program related to conflicts of interest, mismanagement, and curriculum control. In your testimony, you outline many of the things that the Department has done or is doing to respond to these various reports. As you know, last 

month I introduced H.R. 1939, the Reading First Improvement Act, to address many 

of those findings related to conflicts of interest, mismanagement, and curriculum 

control. Many of the provisions in this bill codify steps you are already taking. Do 

you believe H.R. 1939 reflects the approach that Congress should take to provide 

the Department more clarity in terms of how the Department should implement this 

unique program? How can Congress partner with you to strengthen this program 

going forward? 

9. Madam Secretary, it is clear from the Inspector General’s reports that some 

states felt pressured at different points during the implementation of the program 

and that the application process was not perfectly transparent, and I hope that we 

can fix those problems going forward. Yet, I also received a letter following our first 

Reading First hearing from a state Reading First director speaking very highly of 

the program and Chris Doherty in particular. This state director was not only 

thrilled with the program’s outcomes, he felt that those outcomes were directly attributable to the hard work of Chris and others at the Department. You have stated 

62

that the department has reached out to states to solicit their feedback on the program. How would you characterize state feelings about Reading First?

Representative Joe Wilson (R-SC) has asked that you respond to the following 

questions:

1. Given the consequences to borrowers of continuing to limit access to NSLDS 

during a time when many borrowers would like to consolidate their loans, how will 

the Department communicate with borrowers and industry going forward when 

issues such as this arise? 

2. I understand that limited notice was provided to users of NSLDS of the restrictions imposed a few weeks ago. What was the process undertaken by the Department in determining the amount of notice given to NSLDS users prior to imposing 

a restriction on the system’s access? 

3. I understand that the restrictions on the system are beginning to be lifted for 

guaranty agencies. How long do you expect that the restrictions will continue to be 

in place for other users of the system? 

4. Madam Secretary, in conducting investigations into the relationships between 

institutions and lenders, the New York Attorney General submitted notices to many 

institutions, including an institution in my home state—Clemson University. It is 

my understanding that Clemson received funds that it puts towards need-based 

grant aid to students through an arrangement it has with a private loan lender. The 

South Carolina Attorney General Henry McMaster reviewed the agreement, at the 

urging of Attorney General Andrew Cuomo, and found nothing wrong with the 

agreement. Since this is a private loan arrangement, do you have any authority over 

these arrangements and is it an illegal inducement under the HEA? 

5. Do you have suggestions for how the federal government should respond to 

issues when attorneys general in 2 different states disagree about what constitutes 

inappropriate behavior?

Representative Thomas Petri (R-WI) has asked that you respond to the following 

questions: 

I. Department Loan Program Mismanagement 

1. Given the prevalence of unethical relationships between lenders and financial 

aid offices, would you agree that the Department has failed to provide sufficient 

leadership to prevent and identify these practices? 

2. Can you explain the Department’s failure to implement gift and ethics regulations, as it was advised to do in 2001 and again in 2004 after the Financial Aid 

Administrators Assn’ failed to adopt industry standards? 

3. It’s become increasingly clear that various Department officials failed to act to 

prevent subsidy abuse and unethical lender practices over the last decade. Would 

you agree that these officials should be held to account for their mismanagement? 

II. Nelnet $278 Million Settlement 

You recently forgave $278 million to student lender Nelnet, which manipulated 

subsidies to bill taxpayers at the 9.5% rate. I received your response within an hour 

prior to this hearing: 

1. How do you justify your decision, given Nelnet’s brazen abuse and manipulation of taxpayer funds, not to try to fully collect these payments? 

2. Can you please provide all other lenders, subsidy figures, and loan volume in 

question with regards to 9.5%? 

3. You indicated that you would conduct audits of all other potential 9.5% abusers 

before offering any further forgiveness. 

a. Have any additional settlements been reached and; 

b. Do you still intend to offer forgiveness on a case-by-case basis in accordance 

to the audit results? 

4. According to some legal analysts, neither individual taxpayers nor the Department of Justice has the legal authority to challenge your settlement, only the lender. 

5. Would you agree that Congress should include an oversight mechanism in HEA 

for future settlements, given the large sums of taxpayer funds at stake? 

III. On the Guaranteed Loan Program 

The Bush Administration’s Office of Management and Budget and Treasury Department, along with the Congressional Budget Office, Government Accountability 

Office, and private economists have all agreed that the guaranteed loan program is 

significantly more expensive than the Direct Loan alternative—costing taxpayers an 

estimated $3—5 billion annually in excess subsidies. 

1. Would you agree that these wasteful subsidies in the guaranteed program are 

a product of a structurally-broken system? 

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2. Would you agree that a market-based loan guarantee auction would reduce 

wasteful spending by requiring lenders competitively bid for taxpayer subsidies? 

3. Why did it take the Administration six years to publicly recognize on the excess 

subsidies in the guaranteed loan program given the strong supporting evidence? 

4. Can you please provide a complete list of FFELP lenders and federal subsidy 

payments for the most recent year that data is available? 

IV. Misc. Direct Loan Question 

The Higher Education Act (Section 455) mandates that the Direct Loan program 

provide ‘‘the same terms, conditions, and benefits’’ as the FFEL program. 

The only lender to provide federal loan borrowers lower interest rates in recent 

years has been MyRichUncle which has offered 5.8% rates. Reducing Direct Loan 

interest rates to 5.8% as MyRichUncle has would save the typical student borrower 

$1,000 in student loan payments. 

In 1999, Secretary Riley enforced this provision and lowered Direct Loan program 

fees to match the lower origination fees that guaranteed lenders were offering. 

1. Why hasn’t the Bush Administration lowered interest rates for Direct Loans to 

match the lower interest rates being offered by guaranteed lenders like 

MyRichUncle?

Representative Mark Souder (R-IN) has asked that you respond to the following 

questions:

1. Madam Secretary, can you tell us what statutory authority exists in the Higher 

Education Act that allows schools in the Direct Loan program to force students and 

parents to borrow from the government, thereby restricting their free choice in selecting a student loan lender? 

2. Considering much of the current discussion began as a result of lenders complaining that schools were restricting the choices of students and parents, how do 

you justify allowing the Direct Loan program to eliminate all choices and forcing 

students to borrow from one lender? 

3. There has been a proposal in Congress that would bribe schools to join the Direct Loan program with the lure of potential grant funds. What is your opinion of 

that proposal? Could the Department of Education handle a substantial increase in 

Direct Loan volume? Do you support bribing schools in this fashion or would you 

prefer that a robust level of competition continues to exist between the two loan programs? 

4. Included in H.R. 890, The Student Loan Sunshine Act, was a provision that 

required institutions with preferred lender lists to disclose to both you and the public why the lenders were placed on the list. The Democrats opposed including a provision that was in H.R. 1994, The Financial Aid Accountability & Transparency Act, 

which required Direct Loan schools to disclose why they selected the Department 

as their lender. It seems to me that if one argues that students need to know why 

a school selected 3 to 4 lenders in the FFEL program, then it is even more important that students be given that same information when their school only selects 

ONE lender for them just like a school does in the DL program. What do you think 

about that? 

Responses to May 16, 2007 Written Questions for the Committee on 

Education and Labor 

Rep. Jason Altmire (D-PA):

1. The former Reading First Director, Chris Doherty, was referred to the Justice 

Department because he had a conflict of interest coming into the Department of 

Education that he did not properly disclose. Mr. Doherty’s wife works for an organization with ties to a specific reading methodology and with ties to reading products. 

Can you please explain why the Department failed to properly address this conflict? 

I have reviewed the matter and determined that the Department reviewers acted 

in a reasonable way in addressing this matter. However, because this matter has 

been referred to the U.S. Attorney’s Office as a possible criminal matter, it would 

be inappropriate to discuss the specifics of the Department’s actions until that review has been completed. 

2. When was the first time you learned that Mr. Doherty’s wife worked for an organization with ties to reading products? What did you do about it? 

See the answer to Question 1 above. 

3. What steps will the Department take going forward to proactively identify and 

address conflicts of interest among its own employees? 

The Department runs an ethics program in accordance with regulations and guidance issued by OGE, an independent Executive branch agency charged with estabVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00067 Fmt 6633 Sfmt 6621 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
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lishing government-wide ethics policy. The Department has received periodic program reviews by the OGE. Most recently, the Department’s ethics program was recognized for excellence in training when it received the OGE 2007 Ethics Training 

Award. In 2004, OGE reported, ‘‘ED’s ethics program is essentially sound and appears to be appropriately tailored to the needs of agency employees’’ and that the 

ethics training requirements are ‘‘not only being met, but also exceeded in many 

ways.’’ In the report of its 1997 review, OGE stated that, ‘‘Education’s ethics program is sound and well managed. We are impressed with the commitment shown 

by [the staff] to providing high quality services to employees and with the measures 

taken to prevent actual or the appearance of conflicts of interest on the part of Education employees.’’ In OGE’s report of its 1993 review, it noted, ‘‘In many respects 

[the ED ethics program] is one that could serve as a model for other executive 

branch agencies.’’

Moving forward, the Department will continue to vigorously review and evaluate 

financial disclosure reports filed by Department employees. In order to enhance our 

current program, the Department has instituted a two-attorney review of each public financial disclosure report. Additionally, I have asked the head of the Department’s ethics office to identify best practices in the government ethics programs and 

to prepare a report with recommendations on ways to further enhance the Department’s ethics program. Finally, both the Department’s OIG and OGE have recently 

initiated reviews of the Department’s ethics program. We are cooperating with both 

of these reviews and believe the results will further inform our efforts to enhance 

the ethics program at the Department. 

4. What was your role in the implementation of Reading First while you served 

in the White House? 

My duties at the Domestic Policy Council (DPC) included budget and policy issues 

for well over 500 federal grant and loan programs across eight Cabinet and other 

major agencies. While at DPC, I had responsibilities with regard to the development 

and implementation of many government initiatives, including those involving Global Aids, Immigration, Postal Reform, Food Safety, Pandemic Flu, and the overall implementation of the No Child Left Behind Act, which includes Reading First. 

5. Did you play any role in selecting program officials, contractors, sub-contractors, or consultants? 

The Department’s officials had delegated authority from the Secretary of Education to select program officials, contractors, subcontractors, and consultants. 

6. Did you ever have discussions with Beth Ann Bryan, Douglas Carnine, or Reid 

Lyon about Reading First prior to joining the Department? What specifically did 

those conversations entail? 

In my role at DPC, I generally discussed matters about the Department with Reid 

Lyons and Beth Ann Bryan, but it would be inappropriate for me to discuss the details of these discussions as a former senior adviser to the President of the United 

States.

Rep. Bobby Scott (D-VA):

1. Are you aware that Kentucky made changes to its Reading First grant application to eliminate certain reading programs before receiving their federal grant? 

Have you submitted inquiries to states to determine which, if any, additional states 

changed their Reading First grant application to eliminate certain reading programs 

before receiving their grant? Assuming that such changes were made, what remedies will be available for organizations that were eliminated in grant applications? 

Although I am not aware of the specifics of every State’s Reading First application, I am aware of the testimony of that was provided by Star Jones, the Associate 

Commissioner for the Office of Teaching and Learning at the Kentucky Department 

of Education, at your Committee’s April 20th hearing on the implementation of the 

Reading First program. 

In an effort to address any concerns about the Reading First program, on September 29, 2006, then-Assistant Secretary for Elementary and Secondary Education 

Henry Johnson, sent a letter to State Reading First Directors notifying them of the 

report from the Department’s Office of the Inspector General entitled The Reading 

First Program’s Grant Application Process. In the letter, Dr. Johnson asked each 

State to notify the Department of any concerns it may have with the process used 

to review State Reading First applications. He also requested that they notify us 

if they did not have any complaints. 

The Department received responses from 25 States. Of the 25 States that responded, 16 (Alabama, Alaska, Arizona, Arkansas, Colorado, Hawaii, Kansas, Maryland, Mississippi, Missouri, Rhode Island, South Dakota, Tennessee, Utah, Washington, and the Virgin Islands) expressed no concerns with the review process, and 

a number had positive comments about the program or review process. For example, 

65

Kansas indicated that it was approved without identifying a core reading program 

and likely had the most flexible Reading First plan. Kansas also indicated that it 

had no problems during the review process that were not resolved, and that they 

appreciated the help that they received from the Department. Seven States (Maine, 

Massachusetts, Montana, New Hampshire, New Jersey, North Dakota, and Wisconsin) expressed concerns with the review process. For example, New Hampshire 

expressed concerns with the efficiency of the review process. The State noted that 

the Department did not provide it with comments from the peer-review panel in a 

timely manner, and that the length of the review process put stress on the system 

at the state and local level. Two States, Oregon and Pennsylvania, responded to the 

letter but did not express an opinion on the quality of the review process. 

Program staff contacted each State that did not reply to the request to provide 

comments on the review process. In conversations between Department and State 

program staff, seven States (California, Delaware, Iowa, South Carolina, Texas, 

Vermont, and American Samoa) indicated that they had no concerns with the review process and did not plan to submit a response. Kentucky indicated that the 

State had concerns with the process but did not submit a response because it had 

previously communicated its concerns to the Department. The remaining States did 

not respond to Department staff or indicated that they had no comments on the review process. 

Any State that believes that it was pressured to remove a specific reading program from its Reading First application may submit an amendment to its application. The State would have to demonstrate that the program proposed for inclusion 

meets the criteria described in its Reading First plan for identifying programs based 

on scientifically based reading research. Since the OIG issued its inspection report, 

staff have held meetings of all the Reading First State directors and the States were 

told about the process for submitting amendments to their approved State plans. 

2. What campaign contributions were made by Nelnet in the two years prior to 

the company’s settlement with the Department? 

The Department does not have this information.

Rep. Donald Payne (D-NJ):

1. The purpose of the National Student Loan Data is to serve as a central repository on student loans for lenders, guarantors, schools, borrowers, and the Department to update and obtain information needed [in] administering the student loan 

programs. How do you justify the fact that for nearly a month, the vast majority 

of users who have done nothing, have not been able to use the system to administer 

the loan programs? 

Access for Guaranty Agencies, Lenders, and Lender Servicers was temporarily 

suspended on April 18, 2007. Access for borrowers, students, and institutions of 

higher education was not affected and these entities represent the majority of 

NSLDS users. While Guaranty Agencies, Lenders, and Lender Servicers were affected by the temporary suspension, we are working diligently to restore their access. We reinstated NSLDS access for 32 out of 35 Guaranty Agencies (91%) of 

Guaranty Agencies. We anticipate restoring access to the remainder of the Guaranty 

Agencies in the near future. We requested additional certifications from lenders and 

lender servicers and access to these entities will be provided when the requested 

information is received. To date, we have reinstated access for approximately 11% 

of the lenders who had accessed the system within the past year and approximately 

24% of the lender servicers who had accessed the system within the past year. We 

are still developing a process to reinstate access for those entities that participate 

in the program as Eligible Lender Trustees. 

That said, we understand that this temporary suspension has delayed some functions by the affected organizations. However, ensuring appropriate access to NSLDS 

to protect the confidentiality of our borrowers’ financial information is our highest 

priority. 

2. Last year, there was a significant backlog in Consolidation loan processing because of unexpected guidance that the Department issued in April, which Congress 

later overturned by repealing the ‘‘single holder rule.’’ Your decision to lock lenders 

out of the NSLDS seems to be creating another backlog this year. What are you 

going to do to restore access to the system now and avoid causing another situation 

which results in borrowers waiting months to be able to lower their monthly payments using Consolidation loans? 

Borrowers can log onto the NSLDS Borrower website to obtain the data needed 

to complete the consolidation loan application. Lenders can continue to process the 

application without accessing NSLDS. 

66

Additionally, because of the new fixed student loan rates and the increased consolidation volume in previous years, we anticipate a lower volume of consolidation 

requests this year. 

3. The Department notes that it has begun to restore access to the system. How 

many lenders have been allowed to regain access to the system? Why hasn’t the Department provided lenders with information and a timeline for restoring access? 

Appropriate instructions for Guaranty Agencies and Lenders, including Lender 

Servicers, were sent on May 2, 2007 and May 15, 2007, respectively, to the Chief 

Operating Officer of each organization via e-mail. As the entity responds and the 

data is reviewed, access is being restored. 

4. Before you made your decision on April 17th to lock lenders out of the system, 

didn’t the system already record access of every borrower’s record, noting the time 

and user who accessed a borrower’s record? Why wasn’t this enough information for 

the Department to be able to investigate whether users were not properly accessing 

records? What has the shut down accomplished that couldn’t have been done while 

still maintaining access to users in compliance? 

We continuously monitor access to NSLDS to prevent unauthorized use. As a result of this monitoring, we issued a Dear Colleague Letter (DCL) in April 2005 reiterating NSLDS usage requirements. Following the release of the DCL, we observed 

a significant increase in usage by lenders, loan holders, servicers, and guaranty 

agencies. This was a matter of concern to us and we began considering potential 

courses of action. After consideration of alternatives, the Department temporarily 

suspended access to NSLDS by lenders, lender servicers, and guaranty agencies. 

Please note there is no indication of any unauthorized access to NSLDS. 

5. Were any security breaches by unauthorized users identified by the Inspector 

General before you made your decision on April 17th? 

No. We are not aware of any NSLDS security breaches by unauthorized users 

identified by the Inspector General. 

6. Have there ever been any instances of identity theft attributable to a user accessing NSLDS? 

No. We are not aware of any instances of identity theft attributable to a user accessing NSLDS. 

7. With regard to the charge that lenders were using the system for marketing, 

are lenders able to obtain a borrower’s address from the system? Phone number? 

E-mail? How can the system be used for marketing, if it contains no contact information on borrowers? 

NSLDS does not provide access to email addresses, phone numbers or addresses 

of borrowers, nor does it authorize the analysis or database searches of multiple borrower records. However, lenders that participate in the FFEL Program often purchase data from credit bureaus and other sources for the specific purpose of making 

an offer of credit to an individual, in this case a FFELP consolidation loan. Within 

this solicitation is a request for permission to access NSLDS to obtain information 

on the borrower’s loans. 

8. Can you confirm that lenders [are] able to obtain from NSLDS lists of borrowers at a given institution who have outstanding student loans? 

Authorized NSLDS users cannot obtain lists of borrowers at a given institution 

who have outstanding student loans. NSLDS only allows a user to look up a single 

borrower at a time and only if the user has a relationship with the borrower or, 

until recently, had specific permission from the borrower to do so. The use of automated tools is prohibited. Federal Student Aid deploys a variety of tools and monitoring techniques to alert us to the possibility that automated tools are being used 

and automatically suspend the access for the user ID. 

9. Can a user access a borrower’s records in NSLDS without knowing the borrower’s social security number? 

No. Prior to April 30th, in order to access a borrower’s records in NSLDS, the user 

had to, at a minimum, enter the borrower’s social security number to access the 

records. Beginning on April 30th, the social security number, date of birth, and borrower’s first name are required to access a borrower’s records. 

10. Were you aware your decision would result in lenders not being able to verify 

borrower’s eligibility for consolidation loans or would significantly disrupt the loan 

consolidation process? 

Lenders can continue to process consolidation loan applications without accessing 

NSLDS. Borrowers can log onto the NSLDS Borrower website to obtain the data 

needed to complete the consolidation loan application. 

That said, we understand that this temporary suspension has delayed some functions by the affected organizations. However, ensuring appropriate access to NSLDS 

to protect the confidentiality of our borrowers’ financial information is our highest 

priority. 

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11. What specific threat did you believe you were addressing when you made the 

decision on April 17th? 

We continuously monitor access to NSLDS to prevent unauthorized use. As a result of this monitoring, we issued a Dear Colleague Letter (DCL) in April 2007 reiterating NSLDS usage requirements. Following the release of the DCL, we observed 

a significant increase in usage by lenders, loan holders, servicers, and guaranty 

agencies. This was a matter of concern to us and we began considering potential 

courses of action. After consideration of alternatives, the Department temporarily 

suspended access to NSLDS by lenders, lender servicers, and guaranty agencies. 

Please note there is no indication of any unauthorized access to NSLDS. 

12. Are you aware that the shut down of the system benefits large lenders who 

already hold a borrower’s loans such as Sallie Mae, Nelnet, and the Department’s 

Direct Loan program, since they do need to access NSLDS in order to make Consolidation loans to their borrowers? Why would you take an action that would limit a 

borrower’s choice of lender, when clearly it is the intent of this body to offer borrowers the broadest degree of choices? 

The borrower is free to select any eligible, participating lender by selecting a consolidation loan application and working with his/her lender of choice. 

As we mentioned above, the data needed by the consolidation borrowers is still 

accessible to complete the consolidation loan application. Borrowers can log onto the 

NSLDS Borrower website to obtain the data needed to complete the loan application. Lenders can continue to process the application without accessing NSLDS. 

Ranking Member McKeon (R-CA): 

1. Chairman Miller has recently sent some marketing documents to the Federal 

Trade Commission in order to determine if such documents are deceptive marketing 

materials. I have seen some of those materials and they look fairly deceptive to me. 

Has the Department sent such marketing documents to the FTC in the past and 

what was the response? 

The Department shares the Committee’s concern. In fact, during 2003 and 2004, 

the Department of Education referred to the FTC 31 complaints about 10 private 

student loan companies who were distributing marketing materials that the department thought might be deceptive. We understand from FTC staff that they have 

given careful consideration to these complaints. The Department of Education and 

FTC staffs currently are discussing how to improve cooperation on all matters related to private student loans, including improving the sharing of information concerning marketing materials that could be deceptive. 

2. Madam Secretary, you have been criticized for not enforcing the inducement 

prohibition in the Higher Education Act. We know that the Clinton Administration 

took an action against Sallie Mae which was decided in Sallie Mae’s favor by an 

administrative law judge in 1996. For the record, do you know how many other enforcement actions were taken by the Clinton Administration with respect to inducements? 

We are not aware of any other formal enforcement actions taken by the Clinton 

Administration with respect to inducements. 

3. Madam Secretary, has your administration taken any such actions against 

lenders or other parties? 

Fair and effective oversight and monitoring of the nearly 3,500 lenders, guaranty 

agencies, and servicers that participate in the FFEL Program, is one of the Department’s highest priorities. In fact, our oversight and monitoring activities conducted 

between fiscal year 2003 and the present resulted in the assessment, collection, or 

return of over $712,000,000 by lenders, guarantee agencies, and third-party 

servicers in the Federal Family Education Loan Program (FFELP). 

In addition, Federal Student Aid (FSA) monitors the school and lending community by reviewing required annual compliance audits and financial statements, performing on-site program reviews, and analyzing partner-specific data to detect 

trends and areas that could be of concern. FSA has reviewed many audits and completed a number of on-site program reviews of schools, lenders, guaranty agencies, 

and third-party servicers for fiscal years 2001 though 2006, and is, in fact currently 

engaged in several dozen reviews of program participants with regard to the payment of possibly improper inducements. 

Last year, the Department created an intra-department team to conduct targeted 

reviews and investigate complaints from students and lenders. When the Department determines a violation may have occurred, we look into it and, if necessary, 

take appropriate actions to stop it. Typically, we contact the lender, servicer, or 

guaranty agency and tell it to stop and, in most cases, it halts the questionable 

practice. Cease-and-desist letters have been issued to those entities that were found 

to be in noncompliance with the regulations. 

68

We are planning to review schools, lenders, and eligible lender trustees and, in 

fact, have begun our on-site visits. 

4. One of the things Chairman Miller has asked you to implement is ‘‘emergency 

regulations’’ to put an end to some of the practices that have been in the media lately. To your knowledge, has the Department ever enacted ‘‘emergency regulations?’’ 

Does the Department even have the legal authority to enact ‘‘emergency regulations’’ for an activity like this? 

In our May 9th written response to the Chairman, we provided a detailed answer 

to the question of ‘‘emergency regulations.’’ First, it is incorrect to suggest that the 

Department possessed the authority under current law to ‘‘immediately publish 

emergency regulations’’ on ‘‘inducements and bribes.’’ Section 492(b)(2) of the Higher 

Education Act of 1965 (HEA), states that the Department must conduct negotiated 

rulemaking ‘‘unless the Secretary determines that applying such a requirement with 

respect to given regulations is impracticable, unnecessary, or contrary to the public 

interest’’ within the meaning of section 553(b)(3)(B) of title 5, United States Code. 

In addition to the requirements for negotiated rulemaking, the Administrative 

Procedure Act provides, in 5 USC 553(b), that the Department must allow for public 

notice and comment when undertaking rulemaking unless ‘‘the agency for good 

cause finds ... that notice and public procedure thereon are impracticable, unnecessary, or contrary to the public interest.’’ As interpreted by the courts, rulemaking 

is considered ‘‘impracticable’’ when execution of the agency’s statutory duties would 

be unavoidably prevented by undertaking public rulemaking. Notice and comment 

is ‘‘unnecessary’’ in those limited situations in which the administrative rule is a 

routine determination, insignificant in nature and impact, and inconsequential to 

the industry and to the public. Finally, ‘‘contrary to the public interest’’ applies only 

in the narrow circumstance when the interest of the public would be defeated by 

any requirement of advance notice of rulemaking, such as when announcement of 

a proposed rule would enable financial manipulation that the rule sought to prevent. 

Accordingly, the matters referred to by Chairman Miller do not fit any of the exceptions to the negotiated-rulemaking requirement or the notice-and-comment requirement. Any regulatory action on lender issues by the Department would not be 

routine, insignificant, or inconsequential. Moreover, notice-and-comment rulemaking 

would not ‘‘unavoidably prevent’’ the Department from fulfilling its responsibilities 

to provide federal financial assistance or perform other functions. 

Finally, given the intense interest in financial aid issues, it would be impossible 

to argue that preventing notice and comment could be in the ‘‘public interest.’’ And 

even if some emergency authority for waiving the proposed rulemaking and negotiated rulemaking requirement existed, changes to the federal student financial aid 

regulations published by the Department cannot, because of §482(c) of the HEA, be 

effective until July 1 after the year they are published (and, even then, only if they 

are published by November 1). The Department has no authority to disregard the 

November 1 deadline. Thus, any regulations published now cannot take effect until 

July 1, 2008. 

5. There seems to be a lot of confusion about what is a prohibited inducement 

even though the law is clear about not paying a school for loan applicants. The Department issued guidance explaining the law when it was first enacted and it has 

not significantly changed since its enactment more than 15 years ago. Do we have 

a problem with the law or is this really more of an ethics issue for colleges? 

In order to answer the question of whether the law is insufficient or not, a dialogue is necessary among the various stakeholders. 

6. The bill we passed yesterday addresses the ethics issue but it did nothing to 

address the statutory provision on inducements so if this is a problem with the law, 

what should Congress do to solve the problem? 

If Congress determines that the law is not adequate in addressing the issue of 

inducement, then Congress should amend the law. 

7. While the press has been pointing to a report by the Office of the Inspector 

General that alleges that the close relationship the Office of Federal Student Aid 

has with lenders and guaranty agencies has impeded FSA’s ability to do proper compliance and oversight of these entities, that is not what I have seen or heard from 

companies in my state. What are your thoughts on this? 

I hold the employees at the Department of Education in high regard. Collectively, 

they are dedicated and committed to ensuring that borrowers have a competitive 

and robust system at their disposal. In addition, they value maintaining the integrity of that system. 

With regard to hiring, the business community seeks individuals who meet certain requirements for their jobs. In many cases, these requirements include a skill 

or knowledge set around the particular job. In fact, Congress hires individuals to 

69

staff key positions on Committees with individuals who have a background in the 

appropriate specialized field. I would venture to guess that some banking experience 

would be necessary to be considered for a policy-level position at the Committee on 

Financial Services. As such, it is wholly appropriate and, indeed, responsible for my 

Department to seek individuals who have a background in certain areas of education. With regard to the duties required of someone who works in the Federal Student Aid, most of the strongest candidates come from the lending community, as 

they have the requisite knowledge and understanding of the system. 

8. From the various reports that have been released, including the report issued 

by Senator Kennedy yesterday, it is clear that mistakes were made in the implementation of the program related to conflicts of interest, mismanagement, and curriculum control. In your testimony, you outline many of the things that the Department has done or is doing to respond to these various reports. As you know, last 

month I introduced H.R. 1939, the Reading First Improvement Act, to address many 

of those findings related to conflicts of interest, mismanagement, and curriculum 

control. Many of the provisions in this bill codify steps you are already taking. Do 

you believe H.R. 1939 reflects the approach that Congress should take to provide 

the Department more clarity in terms of how the Department should implement this 

unique program? How can Congress partner with you to strengthen this program 

going forward? 

As you note, the Department has implemented all of the recommendations in the 

Office of Inspector General’s (OIG) inspection report on an expedited basis and, in 

some cases, went beyond what was suggested by the OIG to implement improvements. This should be very helpful in the effective implementation of the Reading 

First program and build on the many successes of the program. The provisions in 

H.R. 1939 are consistent with, and supplement well, the actions the Department has 

taken. The implementation of corrective measures and the provisions in H.R. 1939 

will help to further ensure the integrity, objectivity, and transparency of the Reading First program. We look forward to working with Congress on this issue. 

9. Madam Secretary, it is clear from the Inspector General’s reports that some 

states felt pressured at different points during the implementation of the program 

and that the application process was not perfectly transparent, and I hope that we 

can fix those problems going forward. Yet, I also received a letter following our first 

Reading First hearing from a state Reading First director speaking very highly of 

the program and Chris Doherty in particular. This state director was not only 

thrilled with the program’s outcome, he felt those outcomes were directly attributable to the hard work of Chris and others at the Department. You have stated 

that the [D]epartment has reached out to states to solicit their feedback on the program. How would you characterize state feelings about the program? 

I believe that States are very happy with the increases in reading achievement 

that they are seeing in schools participating in the Reading First program. For example, in California, over 73 percent of school districts participating in Reading 

First showed improvements in reading comprehension for second graders, while 

more than 70 percent showed improvement in reading fluency for first graders. In 

the second grade, proficiency in reading comprehension increased nearly 11 percent 

for Hispanic students, 10 percent for economically disadvantaged students, and 

nearly 8 percent for limited English proficient students. 

Nationally, students who participated in Reading First are experiencing tremendous gains in reading achievement. On average, States increased the percentage of 

Reading First students meeting or exceeding proficiency on fluency outcome measures—a 16 percent average gain for 1st graders, 14 percent for 2nd graders, and 

15 percent for 3rd graders. Similar increases for reading comprehension outcome 

measures were also found—a 15 percent average gain for 1st graders, 6 percent for 

2nd graders, and 12 percent for 3rd graders.

Rep. Joe Wilson (R-SC):

1. Given the consequences to borrowers of continuing to limit access to NSLDS 

during a time when many borrowers would like to consolidate their loans, how will 

the Department communicate with borrowers and industry going forward when 

issues such as this arise? 

Under the current temporary suspension, borrowers are able to consolidate their 

loans and are able to log onto the NSLDS Borrower website to obtain the data needed to complete the consolidation loan application. We continue to communicate with 

the community through established means—including postings to Federal Student 

Aid Websites, Dear Colleague Letters, Dear Partner Letters, and individual letters 

and emails to industry organizations. 

2. I understand that limited notice was provided to users of NSLDS of the restrictions imposed a few weeks ago. What was the process undertaken by the DepartVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00073 Fmt 6633 Sfmt 6621 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
70

ment in determining the amount of notice given to NSLDS users prior to imposing 

a restriction on the system’s access? 

Through the Department’s ongoing and targeted monitoring of NSLDS, we observed a significant increase in usage by lenders, loan holders, servicers, and guaranty agencies. After consideration of alternatives, the Department, on April 17, 

2007, temporarily suspended access to NSLDS by those entities. 

Ensuring appropriate access to NSLDS to protect the confidentiality of our borrowers’ financial information is our highest priority. The new security measures include two functions and added minimal burden to users. First, after logging into 

NSLDS, a user is prompted with a box that contains several random letters and/

or numbers. The user must correctly enter the information displayed in the box to 

receive authorization to continue into NSLDS. This process should take less than 

a few seconds, but provides added security against automated tools logging onto 

NSLDS. Second, all queries into NSLDS web access requires the user to provide the 

social security number, date of birth, and first name of the borrower. This added 

security measure also adds little time to the borrower look-up process but provides 

an added level of security for borrowers’ private financial information. 

Additional security measures are currently being researched. If these new security 

features change the system in such a way that users will need training or notice, 

we will communicate this change to the community. 

3. I understand that the restrictions on the system are beginning to be lifted for 

guaranty agencies. How long to you expect that the restrictions will continue to be 

in place for other users of the system? 

Instructions for Guaranty Agencies and Lenders, including Lender Servicers, were 

sent on May 2, 2007 and May 15, 2007, respectively, to the Chief Operating Officers 

of each organization via e-mail. As the entity responds and we review the data, we 

restore their access. So far, we have restored NSLDS access for 32 out of 36 Guaranty Agencies (89%). We anticipate restoring access to the remainder of the Guaranty Agencies in the near future. We requested additional certifications from lenders and lender servicers and access to these entities will be provided when the requested information is received. To date, we have reinstated access for approximately 11% of the lenders who had accessed the system within the past year and 

approximately 24% of the lender servicers who had accessed the system within the 

past year. We are still developing a process to reinstate access for those entities that 

participate in the program as Eligible Lender Trustees. 

4. Madam Secretary, in conducting investigations into the relationships between 

institutions and lenders, the New York Attorney General submitted notices to many 

institutions, including an institution in my home state—Clemson University. It is 

my understanding that Clemson received funds that it puts towards need-based 

grant aid to students through an arrangement it has with a private loan lender. The 

South Carolina Attorney General Henry McMaster reviewed the agreement, at the 

urging of Attorney General Andrew Cuomo, and found nothing wrong with the 

agreement. Since this is a private loan arrangement, do you have any authority over 

these arrangements and is it an illegal inducement under the HEA? 

The HEA proscribes inducements paid by lenders to secure applications for 

FFELP loans, and the HEA gives the Department authority to take action where 

such inducements are made. We have not reviewed either the text of, or circumstances surrounding, the agreement with Clemson University you refer to, and 

thus, have no opinion whether this agreement constitutes an inducement within the 

scope of the HEA. 

5. Do you have suggestions for how the federal government should respond to 

issues when attorneys general in 2 different states disagree about what constitutes 

inappropriate behavior? 

Our understanding is that the attorneys general of New York and South Carolina 

do not disagree about the propriety of the Clemson arrangement. To the contrary, 

it appears that the facts you describe show deference by one attorney general to the 

views and authority of the attorney general of another state. This conduct is consistent with the principles of federalism that apply to any response by the Department: the Department’s authority extends under current law only to determining 

whether payments were made by lenders to ‘‘...secure applicants for loans under the 

[FFELP]’’, 20 U.S.C. §1085(d)(5)(A), and, if so, taking action regarding the lender 

and the loans in question. The authority of state attorneys general extends to 

whether conduct by either lenders or schools violated state law(s). In some instances, the conduct under scrutiny may be the same as examined by the Department. The respective authorities of the Department and states differ, and no conflict 

arises from each pursuing their own responsibilities with respect to that conduct.

Rep. Tom Petri (R-WI): 

71

I. Department Loan Program Mismanagement 

1. Given the prevalence of unethical relationships between lenders and financial 

aid offices, would you agree that the Department has failed to provide sufficient 

leadership to prevent and identify these practices? 

I do not agree. Under my leadership, the Department raised these issues in its 

announced intention to enter into negotiated rulemaking nearly a year ago. 

2. Can you explain the Department’s failure to implement gift and ethics regulations, as it was advised to do in 2001 and again in 2004 after the Financial Aid 

Administrators Assn’ failed to adopt industry standards? 

The Department issued guidance on prohibited inducements to the student loan 

community in 1989. That guidance, along with some limited additional guidance 

issued in 1995, was incorporated into the Federal Student Aid Handbook. For most 

of the intervening period, lenders, guarantee agencies and institutions appeared to 

have been abiding by the Department’s guidance. 

That began to change, however, as competition for loan volume, particularly consolidation volume, intensified. The Department began to observe some lender’s practices that did not appear to be compliance with the prior guidance. In certain instances we directed the offending lenders to cease the practice and take certain corrective actions. 

By late 2004, the Department recognized the need to provide more definitive guidance and worked on a Dear Colleague letter. However, the Department determined 

that, to be more enforceable, the requirements would need to be incorporated into 

the student loan regulations and began to plan for rulemaking when the reauthorization of the Higher Education Act occurred. However, a comprehensive reauthorization did not—and still has not—occurred. Despite this fact, the Department decided in June 2006 to begin rulemaking to address this and other urgent issues. 

Rulemaking in the student loan area is governed by Section 492 of the Higher Education Act of 1965, which requires the Department, before publishing proposed regulations, to obtain public involvement in the development of the proposed regulations. 

The Department held regional hearings in Berkeley, California; Chicago, Illinois; 

Orlando, Florida; and Washington, DC during the fall of 2006 to determine public 

interest in topics for negotiated rulemaking. In addition, we invited parties to submit topics for consideration in writing. 

After obtaining advice and recommendations from individuals and representatives 

of groups involved in the Federal student financial aid programs, the Department 

must subject proposed regulations to negotiated rulemaking. On December 8, 2006, 

we published a notice in the Federal Register (71 FR 71117) announcing the establishment of two negotiated rulemaking committees: the Loans Committee, to address topics related to the Federal student loan programs authorized by Title IV, 

Parts B, D, and E of the HEA, and the American Competitiveness Grants (ACG) 

and National SMART Grant Committee, to address issues related to those two new 

programs. On January 30, 2007, we published another notice in the Federal Register (72 FR 4221) announcing the establishment of two more committees: the General Provisions Committee, to address programmatic, institutional eligibility, and 

general provisions topics related to Title IV, Parts A (except for Academic Competitiveness Grants (ACG) and National SMART Grant programs), C, G, and H (except 

subpart 2) of the HEA, and the Accreditation Committee, to address accreditation 

topics (Title IV, Part H, Subpart 2 of the HEA). The Loans Committee met to develop proposed regulations over the course of several months, beginning in December 2006. 

Since the last meeting of the Loans Committee, we developed an NPRM that we 

believe fully addresses the issues that have been identified on preferred lender lists 

and prohibited inducements. That NPRM was published on June 12, at 72 FR 

32410. 

3. It’s become increasingly clear that various Department officials failed to act to 

prevent subsidy abuse and unethical lender practices over the last decade. Would 

you agree that these officials should be held to account for their mismanagement? 

I do not share your view that Department officials have failed to act to prevent 

abuses and unethical practices. The Department has investigated and continues to 

investigate practices that appear inappropriate. Let me assure you that we will continue rigorous oversight of these activities. 

II. Nelnet $278 Million Settlement 

You recently forgave $278 million to student lender Nelnet, which manipulated 

subsidies to bill taxpayers at the 9.5% rate. I received your response within an hour 

prior to this hearing: 

1. How do you justify your decision, given Nelnet’s brazen abuse and manipulation of taxpayer funds, not to try to fully collect these payments? 

72

The Department exercises oversight over all higher education lenders that participate in programs under Title IV, Part B of the HEA. Indeed, the Department has 

exercised due care in resolving very complex questions about the use of special allowance payments (SAP) at the 9.5 percent rate on Federal Family Education Loan 

Program (FFELP) loans under Title IV. We continue to carefully scrutinize FFELP 

loans to determine whether the loans are from eligible sources, and thus qualify for 

the 9.5 percent SAP. 

(1) Actions in Regard to Lenders’ Use of 9.5 Percent SAP and Oversight of Additional Lenders. 

In our ‘‘Dear Colleague’’ letter of January 23, 2007, which enclosed a more detailed letter that was sent to all lenders claiming 9.5 percent SAP, the Department 

stated it would not pay any further 9.5 percent SAP on loans other than first-generation or second-generation loans. We advised each lender that sought the 9.5 percent SAP that an audit of its loans would be required to verify the loans were firstor second-generation loans. Additionally, to receive the 9.5 percent SAP, we advised 

that a lender must provide, with each billing submitted to the Department, a management certification that all such loans are first- or second-generation loans. In a 

second ‘‘Dear Colleague’’ letter issued April 27, which also enclosed a letter sent to 

all affected lenders, we provided an Auditor Guide that explained how the required 

audit must be conducted, and we explained the methodology on which the audit procedures are based. Lenders may use an independent auditor of their choice, or may 

have the audit conducted by an audit firm that will be retained by the Department. 

We enclose copies of these letters 

(2) Nelnet, Inc. (Nelnet) Settlement. 

By way of background, the Department’s Office of Inspector General (OIG) issued 

an audit report on September 29, 2006 analyzing certain Nelnet practices regarding 

9.5 percent SAP (Special Allowance Payments to Nelnet for Loans Funded by TaxExempt Obligations, ED-OIG/A07F0017, hereinafter ‘‘IG Audit Report ’’). The IG 

Audit Report found that Nelnet had used an ineligible funding source to acquire 

loans on which it had claimed SAP at the 9.5 percent minimum return rate. OIG 

estimated that Nelnet was improperly paid as much as $278 million in special allowance payments for these loans from the quarter ending March 31, 2003 through 

the quarter ending June 30, 2005, and that Nelnet could be improperly paid as 

much as $882 million for the ineligible loans in the months and years after June 

2005 if Nelnet’s billings are not corrected. OIG recommended that the Chief Operating Officer (COO) for Federal Student Aid (FSA) instruct Nelnet to exclude all the 

affected loans from future claims for payment at the 9.5 percent minimum return 

rate, and require Nelnet to calculate and repay the amounts overpaid on these 

loans. 

Nelnet filed a response to the report on November 14, 2006. In its response, 

Nelnet argued it was entitled to retain all 9.5 percent SAP previously paid to it by 

the Department on FFELP loans. Nelnet further argued it was entitled to receive 

the 9.5 percent SAP on billings in future years over the life of the bond(s), which, 

as noted earlier, the IG Audit Report had estimated might total as much as $882 

million, or more than triple what the Department already paid out. 

The disputed statute and regulation at issue in the IG Audit Report involved 

novel and complex questions of law. No court has rendered any decision interpreting 

this specific statutory provision or regulation. Upon a thorough review of the IG 

Audit Report, the statute and regulation in question, and Department practices, and 

considering potential litigation risks and costs, the inherent uncertainty pending a 

definitive court decision (and any appeals), and the potential for an unfavorable decision, the Department settled its claims against Nelnet. The settlement ensured 

that the estimated $882 million of improper payments (less amounts paid for the 

period from July 1, 2005 through June 30, 2006) would be saved or not paid out 

by the Department to Nelnet in future years, while resolving disputed claims over 

past payments that could have resulted in protracted and costly litigation, potentially delaying resolution of these matters for several years. 

(3) January 23, 2007 Dear Colleague Letter. 

The Department has not changed policy with regard to 9.5 percent SAP. The regulation governing eligibility of student loans for 9.5 percent SAP dates to 1993. This 

same regulation was the subject of our Dear Colleague letter of January 23, 2007. 

The statutory authority underlying the regulation has been in place even longer—

since 1980. 

As stated in the Dear Colleague letter, ‘‘[r]ecent examination of activities involving tax-exempt financing of [FFELP] loans indicates that it is appropriate to restate 

the * * * regulations that control whether FFELP loans * * * [are] eligib[le] for 

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SAP.’’ (emphasis added). The Dear Colleague letter (and the corresponding letter 

sent to lenders) simply advised other lenders that we would not pay 9.5 percent SAP 

on loans other than first-generation or second-generation loans, as set forth in the 

regulation. Further, the Department required lenders to take certain actions as a 

condition for receiving the 9.5 percent SAP. This approach was consistent with the 

legal requirements restated in the Dear Colleague letter that loans other than firstgeneration and second-generation loans are not eligible for 9.5 percent SAP. 

The Department also offered lenders the opportunity to resolve any liability for 

the return of previously received 9.5 percent SAP for loans other than first- or second-generation loans. To do so, lenders were required to take the steps specified in 

the Dear Colleague letter and forego asserting any claim to continued receipt of 9.5 

percent SAP for loans other than first- or second-generation loans. We further noted 

that, should any lender bring a cause of action against the Department for continued receipt of 9.5 percent SAP on loans that are neither first- or second-generation 

loans, the offer in the January 23 Dear Colleague letter to resolve any liability 

would be retracted. In such a case, we would confer with the Department of Justice 

about the advisability of filing any counterclaim against the lender for all 9.5 percent SAP previously paid to that lender on loans that were neither first- or secondgeneration loans. Alternatively, we could exercise the option of recovering those 

funds through administrative offset against any payments then owed the lender. 

2. Can you please provide all other lenders, subsidy figures and loan volume in 

question with regards to 9.5%? 

This information is provided in the enclosed table. 

3. You indicated that you would conduct audits of all other potential 9.5% abusers 

before offering any further forgiveness. 

a. Have any additional settlements been reached and; 

b. Do you still intend to offer forgiveness on a case-by-case basis in accordance 

to the audit results? 

The only written settlement agreement entered into by the Department regarding 

9.5 percent SAP is with Nelnet. The other ‘‘settlements’’ will occur by practice on 

the part of the lenders. The attached letter to the January 23, 2007 Dear Colleague 

Letter to individual lenders sets forth the steps that must be followed for lenders 

to receive any additional 9.5 percent SAP, and settle any potential Department 

claims on previous overpayments. Therefore, the Department does not expect, or require, a lender to execute any document to memorialize acceptance of the offer. A 

lender can accept the Department’s offer simply by the conduct described in that 

offer. 

4. According to some legal analysts, neither individual taxpayers nor the Department of Justice has the legal authority to challenge your settlement, only the lender. 

Because the Higher Education Act gives the Secretary independent authority to 

compromise claims arising under the FFEL program, we agree that neither individual taxpayers nor the Department of Justice has authority to challenge the Department’s settlement with Nelnet. That said, the Department of Justice is not foreclosed from pursuing, as appropriate, separate remedies under other applicable provisions of the law, including under the False Claims Act. 

5. Would you agree that Congress should include an oversight mechanism in HEA 

for future settlements, given the large sums of taxpayer funds at stake? 

An additional oversight mechanism is not necessary. The Department has authority under the HEA to compromise claims under the FFEL program and has exercised that authority properly. 

III. Guaranteed Loan Program 

The Bush Administration’s Office of Management and Budget and Treasury Department along with the Congressional Budge Office and Government Accountability Office, and private economists have all agreed that the guaranteed loan program is significantly more expensive than the Direct Loan alternative—costing taxpayers an estimated $3-5 billion annually in excess subsidies 

1. Would you agree that these wasteful subsidies in the guaranteed program are 

a product of a structurally broken system? 

The Administration strongly supports the continued availability of both guaranteed and direct student loans. Competition between these programs, and among 

lenders in the guaranteed program, enhances borrower and institutional choice and 

drives innovation and improved service in both programs. That said, the President’s 

FY 2008 Budget includes a comprehensive set of reforms that reduce costs, streamline operations, and increase efficiency in the guaranteed loan program. 

2. Would you agree that a market-based loan guarantee would reduce wasteful 

spending by requiring lenders to competitively bid for taxpayer subsidies? 

74

The Administration believes the comprehensive package of proposals included in 

the FY 2008 Budget represents the best approach to enhancing the efficiency and 

effectiveness of the student loan programs for students, schools, and taxpayers. 

3. Why did it take the Administration six years to publicly recognize on the excess 

subsidies in the guaranteed loan program given the strong supporting evidence? 

The Administration has long proposed structural reforms to improve the efficiency 

of the student loan programs. The FY 2005, 2006, 2007, and 2008 President’s Budgets have all included major student loan proposals to expand risk-sharing, increase 

efficiency, streamline operations, and reduce costs to the taxpayer. 

4. Can you provide a complete list of FFELP lenders and federal subsidy payments for the most recent year that data is available? 

Attached is a summary of special allowance subsidies (both regular and tax-exempt) provided to lenders in 2006. 

IV. Misc. Direct Loan Question 

1. The Higher Education Act (Section 455) mandates that the Direct Loan program provide ‘‘the same terms, conditions, and benefits’’ as the FFEL program. The 

only lender to provide federal loan borrowers lower interest rates in recent years 

has been MyRichUncle, which has offered 5.8% rates. Reducing Direct Loan interest 

rates to 5.8% as MyRichUncle has would save the typical student borrower $1,000 

in student loan payments. 

In 1999, Secretary Riley enforced this provision and lowered Direct Loan program 

fees to match the lower origination fees that guaranteed lenders were offering. 

Why hasn’t the Bush Administration lowered interest rates for Direct Loans to 

match the lower interest rates being offered by guaranteed lenders like 

MyRichUncle? 

Former Secretary Riley used his authority to provide a reduced interest rate, in 

the form of an upfront interest rebate, as a repayment incentive as provided for 

under Section 455(a)(8) of the HEA. He did not provide an across-the-board interest 

rate reduction as you suggest because that would have been inconsistent with precise language of the statute that you referenced, which reads: ‘‘Unless otherwise 

specified in this part, loans made to borrowers under this part shall have the same 

terms, conditions, and benefits, and be available in the same amounts, as loans 

made to borrowers under sections 428, 428B, and 428H of this title.’’ Interest rates 

are clearly specified in the part and, thus, cannot be reduced except as done by Secretary Riley, as a repayment incentive.

Rep. Mark Souder (R-IN):

1. Madam Secretary, can you tell us what statutory authority exists in the Higher 

Education Act that allows schools in the Direct Loan program to force students and 

parents to borrow from the government, thereby restricting their free choice in selecting a student loan lender? 

The Higher Education Act of 1965, as amended, created the William D. Ford Federal Direct Loan (DL) program as an alternative to the Federal Family Education 

Loan program. By law, institutions must apply to participate in the DL program. 

Once the institution is accepted for participation in the program, the institution can 

choose to continue to make FFEL loans available to students or not. That is reflected in the agreement that each institution has with the Department. The choice 

of whether to permit a student (or parent in the case of PLUS) is left to the institutions subject to the exercise of Secretary’s discretion pursuant to Section 454(a)(4) 

of the HEA. 

2. Considering much of the current discussion began as a result of lenders complaining that schools were restricting the choices of students and parents, how do 

you justify allowing the Direct Loan program to eliminate all choices and forcing 

students to borrow from one lender? 

As noted above, by statute, borrower choice is provided for within the FFEL program. The DL program clearly provides institutions with the choice to participate 

in that program. 

Institutions have made the choice to participate in the DL program for a variety 

of reasons. 

When the institution decided to apply to participate in the DL program, it provided reasonable benefits when compared to the FFEL program for students attending similar institutions. Many of the institutions that participate in the DL program 

are for-profit trade and technical schools that haven’t benefited from the competition 

for loan volume that has been evident in recent years. Thus, the terms and conditions available in DL are comparable to those provided in FFEL for those schools. 

In addition, some institutions found the DL program made it simpler for them to 

administer the Federal aid programs by having a single funding source (ED) and 

75

a single mechanism for delivering those funds. This makes it easier for the financial 

aid office to package and disburse aid to students quickly and efficiently. 

3. There has been a proposal in Congress that would bribe schools to join the Direct Loan program with the lure of potential grant funds. What is your opinion of 

that proposal? Could the Department of Education handle a substantial increase in 

Direct Loan volume? Do you support bribing schools in this fashion or would you 

prefer that a robust level of competition continue to exist between the two loan programs? 

We do not support the proposal that some in Congress have put forward to encourage institutions to join the DL program. We believe that grant funds should be 

increased overall from savings that are achieved through reductions in lender subsidies in the FFEL program. To provide grant funds only to institutions that participate in the DL program, as some have proposed, would be inequitable. 

With appropriate notice and resources, the Department could over time increase 

operations to accommodate the projected increase in volume. 

Finally, we agree with you that it is important to continue the robust competition 

that exists between the two loan programs and among the FFEL lenders. This competition has greatly improved the quality of service and reduced costs for borrowers 

and taxpayers. 

4. Included in H.R. 890, The Student Loan Sunshine Act, was a provision that 

required institutions with preferred lender lists to disclose to both you and the public why the lenders were placed on that list. The Democrats opposed including a provision that was in H.R. 1994, The Financial Aid Accountability & Transparency Act, 

which required Direct Loan schools to disclose why they selected the Department 

as their lender. It seems to me that if one argues that the students need to know 

why a school selected 3 to 4 lenders in the FFEL program, then it is even more 

important that students be give that same information when their school only selects ONE lender for them just like a school does in the DL program. What do you 

think about that? 

We are not opposed to the inclusion in a Sunshine Act of a provision that requires 

institutions to explain their choice to participate in the DL program either exclusively or in combination with the FFEL program. 

[VIA FACSIMILE], 

May 23, 2007. 

Hon. MARGARET SPELLINGS, Secretary of Education, 

U.S. Department of Education, Washington, DC. 

DEAR SECRETARY SPELLINGS: Following the letter sent to you on May 16, 2007, 

we have collected further questions the Committee would like answered for the 

record. 

During the course of the hearing, Members of the Committee asked questions 

which you were unable to respond to at the time. We now respectfully request that 

you respond to these questions. Additionally, I have personally asked two final questions so that we may have a total understanding of the testimony you provided at 

the May 10, 2007 hearing. Please provide your responses to these questions in Word 

format by COB on Friday, May 25, 2007. If you have any questions, please do not 

hesitate to contact Michael Zola, Chief Investigative Counsel for the Committee at 

(202) 226-9403. 

Sincerely, 

GEORGE MILLER, 

Chairman.

Ranking Member Howard ‘‘Buck’’ McKeon (R-CA) asked you to respond to the following questions for the record:

1. ‘‘In comparison to the Clinton administration, can you tell us how many program reviews and audits were handled by the Federal Student Aid Office during 

the Clinton administration and the current one?’’

2. Additionally, please provide a comparison of the past 20 years in number of 

reviews and audits. 

3. What actions did the Clinton administration take to limit 9.5 payments following their 1996 ‘‘Dear Colleague’’ Letter which increased the number of loans eligible for 9.5?

Representative Thomas Petri (R-WI) asked you to respond to the following question 

for the record:

1. How many other potential claims are there similar to Nelnet?

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Representative Luis Fortuno (R-PR) asked you to respond to the following questions for the record:

1. In your view, what are the chronic problems that plague the Puerto Rico Department of Education (PRDE) and prevent them from reaching peak performance? 

Why are they continuing to fail in providing a decent education to Puerto Rico’s 

575,000 public school children? 

2. How do you plan for better Federal oversight of the PRDE? Clearly, the plans 

they have proposed for improvement are not at all effective. In your response, I 

would like to see a detailed timeline, a list of benchmarks for success, and deadlines 

for improvement. In addition, I would like to receive bimonthly written updates 

upon receipt of your response. 

3. My staff and the Congressional Research Service have had continual problems 

obtaining reliable data on NCLB implementation in Puerto Rico. My staff was advised by your employees that the PRDE only recently agreed they needed to update 

their data collection systems. What progress have they made in that area, and what 

new data have they submitted in recent weeks? 

4. How is your Department helping to increase the PRDE’s staff retention? 

5. As Representative of the 4 million citizens of Puerto Rico, it is my responsibility 

to help ensure that Puerto Rican children receive a quality public school education 

and that NCLB guidelines are followed. As we have identified the PRDE’s widespread mismanagement, what recommendations do you have for me in my role as 

Member of the Committee to improve Puerto Rico’s situation? How do you think I 

can serve in the most helpful role in NCLB reauthorization?

I, Chairman George Miller (D-CA) ask that you respond to the following questions:

1. In your written statement, you note that the Department is investigating 

whether there have been violations of the anti-inducement provisions of the HEA 

and that FSA has teams performing on-site reviews of 44 schools and 26 lenders. 

When were these teams established? For each of the 44 schools and 26 lenders, 

please provide the date(s) on which FSA teams performed an on-site review. Also, 

please provide the guidance, standards, and criteria the Department has provided 

to these teams to conduct these on-site reviews for the purpose of establishing violations or potential violations of the anti-inducement provisions of the HEA. 

2. In your written statement, you note that the Department has issued schools 

124 citations and assessments totaling nearly $4.4 million for lack of administrative 

capability over the last 5 fiscal years. How many of these citations involved violations or potential violations of the anti-inducement provisions of the HEA? How 

many of these citations involved schools’ administration of the title IV student loan 

programs? Please specify the number of schools that had violations, the specific violations, and the number of violations for each school, by fiscal year. How many of 

these violations were identified as a result of on-site reviews conducted by FSA? 

Responses to May 23, 2007 Written Questions for the Committee on 

Education and Labor 

Rep. McKeon 

1. In comparison to the Clinton Administration, can you tell us how many program 

reviews and audits were handled by the Federal Student Aid Office during the Clinton administration and the current one?

Federal Student Aid monitors schools and lenders that participate in the Title IV 

federal student aid programs by reviewing required annual compliance audits and 

financial statements, performing on-site program reviews, and analyzing industry 

data to detect trends and areas that could be of concern. Thirty-five thousand eight 

hundred and seventy five (35,875) program reviews, on-site program reviews, reviews of annual compliance audits received and reviews of financial statements received for schools, lenders, guaranty agencies, and third-party servicers were completed by Federal Student Aid for six fiscal years beginning in FY 2001 and continuing through FY 2006. While we do not have comparable data for the full prior 

eight-year period, between FY 1994 and FY 1999, Federal Student Aid completed 

thirty-five thousand three hundred and seventy four (35,374) such reviews for 

schools, lenders, guaranty agencies, and third-party servicers participating in our 

programs.

2. In addition, please provide a comparison of the last 20 years in number of reviews and audits.

We have data for the past 13 years. Since FY 1994, the Department has conducted well over 70,000 on-site, annual compliance audit or financial statement reVerDate 0ct 09 2002 16:56 Mar 21, 2008 Jkt 000000 PO 00000 Frm 00080 Fmt 6633 Sfmt 6621 G:\DOCS\110TH\FC\110-32\34989.TXT HBUD1 PsN: DICK
77

views of schools and lenders participating in the Title IV programs. Thus, the requested comparison shows that about the same number of program reviews and audits had been conducted during the six-year period FY 94—FY 99 as were conducted 

in the six-year period FY 01—FY 06.

3. What actions did the Clinton administration take to limit 9.5 payments following their 1996 ‘‘Dear Colleague’’ letter which increased the number of loans eligible for 9.5?

We know of no specific government actions, prior to legislative changes in 2004, 

to limit increases for any reason in the number of loans eligible for 9.5 percent SAP. 

However, the question refers to the 1996 Dear Colleague Letter as increasing the 

number of loans eligible for 9.5 percent SAP. Because the Dear Colleague simply 

interpreted existing regulations, the letter did not change those regulations to make 

eligible for 9.5 percent SAP loans that were not otherwise eligible for 9.5 percent 

SAP under the HEA and Department regulations. The Dear Colleague Letter may 

have made lenders aware of latitude already available under those existing regulations, and may have prompted lenders in later years to engage in practices that increased the number of loans eligible for 9.5 percent SAP over what they might otherwise have acquired and treated as eligible for 9.5 percent SAP. However, the Dear 

Colleague Letter, as we have explained repeatedly, in no way supported the practice 

of Nelnet or other lenders that treated loans which were neither first-generation nor 

second-generation loans, as explained in Dear Colleague Letter FP-07-01, as 9.5 percent SAP-eligible. 

Rep. Thomas Petri 

1. How many lenders have made claims similar to Nelnet and what is the loan 

volume associated with these claims for 9.5% subsidy?

Nelnet’s Project 950 was unique in its scope. The Department has not conducted 

reviews to determine whether other lenders made ‘‘similar claims,’’ and if so, to 

what extent such claims were made. As to the question of loan volume, please see 

the 9.5% Summary Excel File (Attachment 1), which presents all 9.5% volume, 

billed each year, as of September 30, 2007. 

Rep. Fortuno 

1. In your view, what are the chronic problems that plague the Puerto Rico Department of Education (PRDE) and prevent them from reaching peak performance? Why 

are they continuing to fail in providing a decent education to Puerto Rico’s 575,000 

public school children?

The major problems that need to be addressed include the following: the need to 

improve the functioning of a complex financial management system; the hiring and 

retention of qualified management staff to oversee Federal programs; the establishment of an independent internal audit capability; and the development of a reliable 

academic data management system required for decisions leading to informed academic instruction decisions and improved student learning. Additional problems 

have been identified in annual single audits, and other monitoring, audits and reviews. For example in the most recent single audit, the problems identified included 

the following: delays in implementing corrective steps in developing internal audit 

capability; deficiencies in the time distribution system and in payroll processing; 

and deficiencies in procurement documentation, and in equipment inventory due to 

transactions not being properly recorded. PRDE is making progress on some of these 

items and those mentioned above, but further progress is important in improving 

the provision of education to students in Puerto Rico.

2. How do you plan for better Federal oversight of the PRDE? Clearly, the plans 

they have proposed for improvement are not at all effective. In you response, I would 

like to see a detailed timeline, a list of benchmarks for success, and deadlines for 

improvement. In addition, I would like to receive bimonthly written updates upon receipt of your response.

The Department has a risk management team that works very closely with each 

of the Department’s program offices and PRDE to ensure that there is appropriate 

monitoring of these and other issues, to help provide appropriate technical assistance to PRDE, and to hold PRDE accountable for progress towards compliance with 

all applicable Federal program and fiscal requirements. This team meets with 

PRDE quarterly to review progress of the current corrective action plans that were 

implemented under the current compliance agreement between the Department and 

PRDE, and to provide technical assistance. Based on two and a half years of implementation of the action plans, the team has determined that PRDE’s plans for improvement were somewhat effective, and helped PRDE make progress in certain 

areas. PRDE’s expectation, however, that the improvements needed could be 

78

achieved in 3 years was not, in all cases, realistic. Federal oversight has resulted 

in several letters regarding compliance with NCLB, which include timelines and 

benchmarks and consequences for noncompliance. The letters are attached for your 

reference (Attachment 2).

3. My staff and the Congressional Research Service have had continual problems 

obtaining reliable data on NCLB implementation in Puerto Rico. My staff was advised by your employees that the PRDE only recently agreed they needed to update 

their data collection systems. What progress have they made in that area, and what 

new data have they submitted in recent weeks?

PRDE recently submitted their proposed EDFacts Transition Plan for providing 

data including NCLB data for 2006-07, 2007-08, and 2008-09. The Plan is currently 

being evaluated by the Department. PRDE also recently submitted a Highly Qualified Teacher Plan, which is currently being evaluated by the Department.

4. How is your Department helping to increase the PRDE’s staff retention?

Retention of qualified staff is an important area for improvement that was identified jointly by the Department and PRDE. However, while the Department is encouraging attention to this problem of staff retention, the resolution of this concern 

appears to involve matters that are primarily ones that should be resolved locally 

and not through Federal action.

5. As Representative of the 4 million citizens of Puerto Rico, it is my responsibility 

to help ensure that Puerto Rican children receive a quality public school education 

and that NCLB guidelines are followed. As we have identified the PRDE’s widespread mismanagement, what recommendations do you have for me in my role as 

Member of the Committee to improve Puerto Rico’s situation? How do you think I 

can serve in the most helpful role in NCLB reauthorization?

I appreciate that you have shared your concerns for the education of the children 

of Puerto Rico. We look forward to working with you to address the concerns you 

have expressed in these questions and during the May 10 hearing as we continue 

to provide assistance and hold PRDE accountable for improving the management of 

Federal grants and improving student achievement. 

Chairman George Miller 

1. In your written statement, you note the Department is investigating whether 

there have been violations of the anti-inducement provisions of the HEA and that 

FSA has teams performing on-site reviews of 44 schools and 26 lenders. When were 

these teams established? For each of the 44 schools and 26 lenders, please provide 

the date(s) on which the FSA teams performed an on-site review. Also, please provide 

the guidance, standards and criteria the Department has provided to these teams to 

conduct these on-site reviews for the purpose of establishing violations or potential 

violations of the anti-inducement provisions of the HEA.

Federal Student Aid established the teams conducting those reviews referenced in 

the May 10 testimony in April 2007. Of the reviews referenced in that testimony, 

to date, we have conducted inducement reviews at the University of Wisconsin-Milwaukee, Student Loan Express and Fifth Third Bank. We are in the process of conducting three additional school reviews and plan to conduct two additional school, 

three lender and one Eligible Lender Trustee reviews later this summer. We will 

continue to schedule and perform reviews at the remaining educational and financial institutions. 

In order to ensure effective reviews, we do not disclose the specifics of the program review procedures that we use to review these organizations. However, general areas of review will include: 

• Agreements, policies, practices or procedures between schools and lenders, loan 

holders, servicers, software providers or marketing firms acting on their behalf; 

• Participation by school personnel on advisory boards of lenders, loan holders, 

servicers or software providers; 

• Consulting or other paid relationships or agreements between school officials 

and lenders, loan holders, servicers or software providers; 

• Financial interest by school personnel in lender, loan holders, servicers or software providers; and 

• Compensation provided to schools personnel by lender, loan holders, servicers 

or software providers.

2. In your written statement, you note the Department has issued schools 124 citations and assessments totaling nearly $4.4 million for lack of administrative capability over the last 5 fiscal years. How many of these citations involved violations or 

potential violations of the anti-inducement provisions of the HEA? How many of 

these citations involved schools’ administration of the title IV student loan programs? 

79

Please specify the number of schools that had violations, the specific violations, and 

the number of violations for each school, by fiscal year. How many of these violations 

were identified as a result of on-site reviews conducted by FSA?

As we indicated, through our on-site program reviews, we identified some 236 instances (including the 124 mentioned in the statement) in which schools demonstrated failures to administer Federal student aid according to general administrative requirements, as opposed to violations of specific program rules. These findings were not for violations of the inducement provisions. In these 236 instances we 

cited the schools and we required corrective action, even though the deficiencies may 

not have caused a specific, identified misuse of Federal funds. We also identified in 

these reviews numerous instances—totaling some $4.4 million—in which these very 

deficiencies actually resulted in improper expenditures of Federal student aid, for 

which the school is liable. 

The following chart details the number of violations (including the original 124) 

cited by deficiency by year; all but 10 of which were identified in our on-site program reviews.

May 11, 2007. 

Hon. GEORGE MILLER, Chairman, 

Committee on Education and Labor, Rayburn House Office Building, Washington, 

DC. 

DEAR CHAIRMAN MILLER: During the May 10 hearing on ‘‘Accountability for the 

Department of Education’s Oversight of Student Loans and the Reading First Program,’’ in which Secretary of Education Margaret Spellings testified, you reported 

that Indiana University left the Federal Direct Loan Program as a result of receiving a $3 million dollar line of credit from Sallie Mae. This is incorrect. This false 

assertion has appeared in some national media and may have been brought to your 

attention without having been verified. 

Indiana University is comprised of seven campuses. Prior to 2003, two of those 

campuses participated in the Direct Loan Program and five were in the Federal 

Family Education Loan Program (FFELP). In 2003, Indiana University went 

through a major software conversion. A review of non-academic services was completed by Arthur Anderson Consultants in 2001. The recommendation was to use 

either the Direct Loan Program or the FFELP for all campuses. Both programs 

worked well for Indiana University, but a committee was formed to review the consultants’ recommendations and the decision was made to use the FFELP for all 

campuses. This decision was made independently from any relationship with the 

lending community. 

Indiana University sent a request for proposal for student loan processing to multiple vendors in June 2003. The request for proposal did not include any opportunity 

loan provisions. The $3 million in opportunity loans was included as a private loan 

alternative and is not based on loan volume. These funds are used as a last resort 

loan for students with no other options to fund a college education. Indiana University exhausts all other financing options before suggesting an opportunity loan. 

Indiana University did not receive any funds from Sallie Mae for transferring 

from the Direct Loan Program to FFELP. It was determined that supporting both 

programs would require additional implementation and maintenance costs for the 

new student information system. The decision to move to a single system was made 

in the interest of efficiency, student service and cost savings. 

Thank you for the opportunity to respond to the inaccurate statement about Indiana University and the reason for the transfer to the FFELP for two of the IU campuses. It is our hope that the official hearing record would be corrected to reflect 


res2.eps
80

the fact that we did not receive any payments for leaving the Direct Loan Program. 

We stand ready to provide any additional information on this matter. 

Sincerely, 

THOMAS C. HEALY, 

Vice President for Government Relations. 

[Additional submissions from Secretary Spellings follow:]


spel1.eps
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spel2.eps
82


pr2-1.eps
83


pr2-2.eps
84


pr1-1.eps
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pr1-2.eps
86

2006 9.5 SAP SUMMARY 

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

833500 WELLS FARGO ELT NELNET ED LOAN FUND .......................................... $158,373,973 $2,728,074,557

828924 AES/PHEAA ............................................................................................ $59,627,998 $1,196,188,921

826688 KENTUCKY HIGHER ED STUDENT LOAN COR ........................................ $40,106,950 $699,065,806

833948 BANK OF NY ELT EDSOUTH ................................................................... $30,940,457 $564,620,484

830075 VSAC EDUCATION LOAN FINANCE PROGRAM ........................................ $28,034,326 $530,904,225

827825 IOWA STUDENT LOAN LIQUIDITY CORP ................................................. $21,291,088 $412,178,900

832095 WELLS FARGO ELT PANHANDLE PLAINS ................................................ $18,360,030 $348,849,840

825585 MICHIGAN HIGHER EDUCATION STUD LOAN .......................................... $17,561,882 $412,663,043

830630 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................ $17,235,161 $307,516,895

822717 NEW MEXICO EDUC ASST FOUNDATION ................................................ $13,855,233 $259,928,343


pr1-3.eps
87

2006 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

834097 WELLS FARGO ELT NTHEA INC ................................................................ $11,976,579 $251,471,061

827866 COLLEGEINVEST ....................................................................................... $11,738,633 $253,422,510

833806 US BANK ELT BHEA ................................................................................. $10,511,074 $254,471,434

828476 UTAH STATE BOARD OF REGENTS ........................................................... $9,613,279 $163,242,746

828863 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $8,878,031 $153,817,735

833211 BANK OF NY ELT GTHEA .......................................................................... $7,707,205 $178,406,284

833405 US BANK ELT ED LOANS INC ................................................................... $7,450,821 $133,316,799

831245 SOUTHWEST STUDENT SRV TRUST WFB ELT ........................................... $7,400,183 $141,012,628

829769 UTAH STATE BOARD OF REGENTS ........................................................... $7,039,426 $131,567,279

899980 INDIANA SECONDARY MARKET ................................................................. $6,653,206 $140,764,497

833016 SC STUDENT LOAN-93 RES (SL03) .......................................................... $6,545,140 $47,205,330

830631 STUDENT LOAN FUNDING US BANK ELT .................................................. $6,089,827 $114,871,881

832934 BANK OF NY ELT GTHEA (93AB) .............................................................. $5,892,372 $121,595,074

828868 TRUSTMARK BANK ELT MHEAC ................................................................ $5,808,316 $103,988,173

805149 BANK OF NY ELT TTEE LELA .................................................................... $5,087,971 $72,942,850

826764 INDUSTRIAL COMMISSION ........................................................................ $4,737,974 $60,863,311

826717 UTAH STATE BOARD OF REGENTS ........................................................... $4,706,039 $103,914,544

828577 RHODE ISLAND STUDENT LOAN AUTHORITY ............................................ $4,217,950 $97,681,990

833264 WELLS FARGO ELT STHEA INC ................................................................. $3,608,890 $83,814,523

831008 STUDENT LOAN FUNDING US BANK ELT .................................................. $3,604,935 $72,552,371

830344 WELLS FARGO ELT MHESAC ..................................................................... $3,251,656 $66,350,212

834086 WELLS FARGO ELT BRAZOS HEA ............................................................. $3,096,241 $53,575,742

832919 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $3,036,588 $53,246,222

826351 ILL DESIGNATED ACCOUNT PURCHASE PR .............................................. $2,611,876 $52,661,912

821666 WELLS FARGO ELT FOR SLAAA ................................................................ $2,567,218 $45,034,222

827283 WYOMING STUDENT LOAN CORPORATION ................................................ $2,542,007 $61,487,189

826966 ALASKA (ACPE) ......................................................................................... $2,460,035 $50,258,274

829691 ZIONS BANK ELT SLFA-WA INC ................................................................ $2,087,202 $38,565,684

833017 S C STUDENT LLR .................................................................................... $1,881,549 $17,466,740

832339 BANK OF NY ELT GTHEA (92AB) .............................................................. $1,785,080 $36,960,240

830351 SC STUDENT LOAN CORP (SL05) ............................................................. $1,604,563 $33,220,877

833691 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $1,538,672 $26,697,813

834023 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $1,529,182 $72,746,901

820164 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $1,392,916 $3,168

831692 STUDENT LOAN FUNDING US BANK ELT .................................................. $1,391,900 $7,961,956

833741 WELLS FARGO ELT CTSLC LLC ................................................................ $1,375,356 $29,801,033

833347 BANK OF NY ELT PANHANDLE PLAINS HEA ............................................. $1,321,448 $26,243,226

825659 OKLAHOMA STUDENT LOAN AUTHORITY ................................................... $1,253,033 $29,069,493

830628 IDAPP ....................................................................................................... $745,832 $28,202,834

808780 FIFTH THIRD ELT SLFR MD 10907A ......................................................... $709,541 $11,900,531

832776 JPMORGAN CHASE ELT SMS CORP—HI .................................................. $687,419 $13,055,632

833752 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $684,281 $17,952,418

805178 BANK OF NY ELT TTEE LELA .................................................................... $600,580 $23,137,957

830248 UTAH STATE BOARD OF REGENTS/STNF .................................................. $572,615 $12,443,094

812089 TEXAS HIGHER EDUCATION COORD BOARD ............................................ $424,017 $16,891,628

831300 MELMAC LLC ZIONS BANK ELT ................................................................ $325,853 $18,014,051

831785 STUDENT LOAN FUNDING US BANK ELT .................................................. $296,983 $5,440,874

831387 BANK OF MISSISSIPPI ELT MHEAC ........................................................... $295,997 $12,569,426

821614 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $249,317 ..............................

807037 COLLEGE FOUNDATION INC ...................................................................... $193,126 $5,484,040

834096 BANCORPSOUTH ELT MHEAC ................................................................... $183,356 $8,482,235

834170 BANK OF NY ELT EDSOUTH ..................................................................... $175,307 $3,383,077

833668 SC STUDENT LOAN CORP (LL05) ............................................................. $124,154 $2,057,939

829189 ALABAMA HIGHER EDUCATION LOAN CORP ............................................. $101,677 $3,074,842

834095 TRUSTMARK ELT MHEAC .......................................................................... $65,978 $4,260,964

828875 COLLEGEINVEST ....................................................................................... $53,595 $1,207,439

821623 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $37,883 ..............................

813285 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $34,706 ..............................

821628 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $29,916 $0

833174 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $23,262 $905,667

827116 SLF OF IDAHO MARKETING ASSN INC ...................................................... $20,190 $0

829064 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $16,503 $521,059

88

2006 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

820163 UNION BANK CA ELT CHELA FUND II (TE) ............................................... $12,940 $0

828200 M H E S A C ............................................................................................ $4,992 $522,781

834246 US BANK ELT KNOWLEDGEFUNDING OHIO ............................................... $226 ..............................

834225 STUDENT LENDING WORKS INC ............................................................... $57 ..............................

805095 FIRST NATIONAL BANK OF JEANERETTE ................................................... ($5) ..............................

823817 JPMORGAN CHASE ELT BRAZOS HEA ...................................................... ($14) ..............................

833617 US BANK ELT EFSI ................................................................................... ($14) ..............................

834092 M&T BANK ELT PHEAA LOAN TRUST I ..................................................... ($21) $0

828148 UNIVERSITY FEDERAL CREDIT UNION ...................................................... ($29) ..............................

833285 US BANK ELT PSFC .................................................................................. ($43) ..............................

808717 JPMORGAN CHASE NA ELT BRAZOS HEA IN ............................................ ($43) ..............................

824573 ZIONS BANK ELT EFS FINANCE CO .......................................................... ($87) ..............................

833495 ZIONS ELT EMT CORP .............................................................................. ($109) ..............................

821920 FIRSTRUST SAVINGS BANK ....................................................................... ($111) ..............................

833934 ZIONS BANK ELT NELNET TRUST ............................................................. ($151) ..............................

831453 US BANK ELT EDAMERICA ....................................................................... ($769) ..............................

825600 NEW JERSEY HIGHER EDUCA ASST AUTH ................................................ ($1,507) $0

834099 UNION BANK CA ELT CHELA FUND I (TEF)) ............................................. ($784,111) $0

826509 ARKANSAS STUDENT LOAN AUTHORITY ................................................... ($5,968,655) $74,272,483

Total ................................................................................................ $581,296,104 $11,106,045,909

2005 9.5 SAP SUMMARY 

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal Balance 

833500 WELLS FARGO ELT NELNET ED LOAN FUND ............................................ $177,688,062 $3,026,977,030

828924 AES/PHEAA ............................................................................................... $101,293,604 $1,729,507,729

826688 KENTUCKY HIGHER ED STUDENT LOAN COR ........................................... $51,890,219 $810,766,884

833948 BANK OF NY ELT EDSOUTH ..................................................................... $39,282,038 $699,762,255

830075 VSAC EDUCATION LOAN FINANCE PROGRAM ........................................... $36,111,916 $718,336,382

827825 IOWA STUDENT LOAN LIQUIDITY CORP .................................................... $31,287,769 $605,324,814

830630 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $30,968,234 $520,582,111

832095 WELLS FARGO ELT PANHANDLE PLAINS .................................................. $26,747,125 $449,047,641

820164 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $24,467,330 $329,975,617

834097 WELLS FARGO ELT NTHEA INC ................................................................ $23,323,937 $462,486,498

833806 US BANK ELT BHEA ................................................................................. $23,093,916 $393,742,962

825585 MICHIGAN HIGHER EDUCATION STUD LOAN ............................................ $20,376,928 $450,996,409

833211 BANK OF NY ELT GTHEA .......................................................................... $17,823,455 $220,936,475

832934 BANK OF NY ELT GTHEA (93AB) .............................................................. $16,361,856 $151,217,885

822717 NEW MEXICO EDUC ASST FOUNDATION ................................................... $16,271,646 $326,534,104

831008 STUDENT LOAN FUNDING US BANK ELT .................................................. $15,899,060 $227,530,128

834071 SLM EDUCATION FINANCE CREDIT CORP ................................................ $14,527,226 ..............................

827866 COLLEGEINVEST ....................................................................................... $12,629,659 $284,213,538

833691 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $12,278,053 $50,311,950

899980 INDIANA SECONDARY MARKET ................................................................. $11,943,493 $233,680,646

805149 BANK OF NY ELT TTEE LELA .................................................................... $11,278,126 $107,124,886

826509 ARKANSAS STUDENT LOAN AUTHORITY ................................................... $10,966,627 $268,612,484

831245 SOUTHWEST STUDENT SRV TRUST WFB ELT ........................................... $10,547,670 $189,107,512

831593 JPMORGAN CHASE ELT GTSLC (96AB) ..................................................... $10,349,941 $0

828863 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $10,331,060 $304,572,569

833405 US BANK ELT ED LOANS INC ................................................................... $10,305,698 $174,003,209

831692 STUDENT LOAN FUNDING US BANK ELT .................................................. $10,182,570 $161,507,049

829769 UTAH STATE BOARD OF REGENTS ........................................................... $10,102,619 $169,990,910

833016 SC STUDENT LOAN-93 RES (SL03) .......................................................... $8,988,615 $144,520,758

830631 STUDENT LOAN FUNDING US BANK ELT .................................................. $8,948,896 $147,542,516

834099 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $7,627,815 $173,922,158

826764 INDUSTRIAL COMMISSION ........................................................................ $6,592,389 $94,111,474

828868 TRUSTMARK BANK ELT MHEAC ................................................................ $6,128,911 $126,468,029

89

2005 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

826351 ILL DESIGNATED ACCOUNT PURCHASE PR .............................................. $5,800,642 $90,634,395

832919 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $5,093,520 $68,678,726

828476 UTAH STATE BOARD OF REGENTS ........................................................... $4,964,739 $133,197,009

828577 RHODE ISLAND STUDENT LOAN AUTHORITY ............................................ $4,748,651 $95,636,652

830344 WELLS FARGO ELT MHESAC ..................................................................... $4,618,439 $120,945,705

833264 WELLS FARGO ELT STHEA INC ................................................................. $4,374,596 $87,616,895

834086 WELLS FARGO ELT BRAZOS HEA ............................................................. $4,094,512 $72,051,061

821666 WELLS FARGO ELT FOR SLAAA ................................................................ $4,032,091 $50,896,131

820163 UNION BANK CA ELT CHELA FUND II (TE) ............................................... $3,674,599 $4,017,617

832339 BANK OF NY ELT GTHEA (92AB) .............................................................. $3,558,893 $45,731,912

833017 S C STUDENT LLR .................................................................................... $3,485,006 $42,755,080

827283 WYOMING STUDENT LOAN CORPORATION ................................................ $2,921,208 $70,811,614

808780 FIFTH THIRD ELT SLFR MD 10907A ......................................................... $2,491,743 $27,959,915

826966 ALASKA (ACPE) ......................................................................................... $2,404,331 $50,235,014

829691 ZIONS BANK ELT SLFA-WA INC ................................................................ $2,396,153 $45,325,275

833741 WELLS FARGO ELT CTSLC LLC ................................................................ $2,368,570 $62,465,045

826717 UTAH STATE BOARD OF REGENTS ........................................................... $2,181,643 $145,952,647

834023 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $2,161,068 $95,015,441

825659 OKLAHOMA STUDENT LOAN AUTHORITY ................................................... $1,936,903 $33,256,289

833347 BANK OF NY ELT PANHANDLE PLAINS HEA ............................................. $1,776,017 $28,990,206

821628 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $1,669,391 $12,800,834

830628 IDAPP ....................................................................................................... $1,335,648 $40,390,786

812089 TEXAS HIGHER EDUCATION COORD BOARD ............................................ $1,303,147 $25,159,870

830351 SC STUDENT LOAN CORP (SL05) ............................................................. $1,248,275 $45,878,614

813285 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $1,154,967 $12,440,671

805178 BANK OF NY ELT TTEE LELA .................................................................... $1,043,293 $28,206,702

831640 STUDENT LOAN FUNDING US BANK ELT .................................................. $1,037,846 $0

821623 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $1,024,679 $21,041,801

830248 UTAH STATE BOARD OF REGENTS/STNF .................................................. $927,051 $16,965,643

831387 BANK OF MISSISSIPPI ELT MHEAC ........................................................... $848,309 $15,805,618

831299 STUDENT LOAN FUNDING US BANK ELT .................................................. $807,046 ..............................

832776 JPMORGAN CHASE ELT SMS CORP—HI .................................................. $700,352 $16,395,135

833668 SC STUDENT LOAN CORP (LL05) ............................................................. $626,137 $3,890,796

831785 STUDENT LOAN FUNDING US BANK ELT .................................................. $573,244 $7,459,365

831300 MELMAC LLC ZIONS BANK ELT ................................................................ $453,860 $23,016,566

807037 COLLEGE FOUNDATION INC ...................................................................... $445,779 $8,339,524

834096 BANCORPSOUTH ELT MHEAC ................................................................... $430,433 $11,450,137

821614 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $276,645 $1,053,869

829189 ALABAMA HIGHER EDUCATION LOAN CORP ............................................. $249,645 $4,618,133

834095 TRUSTMARK ELT MHEAC .......................................................................... $177,395 $7,193,421

823817 JPMORGAN CHASE ELT BRAZOS HEA ...................................................... $161,505 ..............................

808717 JPMORGAN CHASE NA ELT BRAZOS HEA IN ............................................ $129,245 ..............................

828875 COLLEGEINVEST ....................................................................................... $122,282 $1,773,636

827116 SLF OF IDAHO MARKETING ASSN INC ...................................................... $109,817 $3,183,063

833174 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $50,134 $1,547,485

829064 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $41,777 $871,183

833752 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $34,905 $7,263,341

833487 BANK OF NY ELT LOANSTAR .................................................................... $22,574 ..............................

828200 M H E S A C ............................................................................................ $10,165 $904,738

831453 US BANK ELT EDAMERICA ....................................................................... $2,355 $0

888885 SLM ECFC ................................................................................................ $1,363 ..............................

831119 MO HIGHER ED LOAN AUTHORITY ........................................................... $550 ..............................

832057 JPMORGAN CHASE ELT GTSLC ................................................................. $319 $0

833253 JPMORGAN CHASE ELT SLMA TRUST MS181 ........................................... $238 ..............................

821920 FIRSTRUST SAVINGS BANK ....................................................................... $111 $29,950

828148 UNIVERSITY FEDERAL CREDIT UNION ...................................................... $29 ..............................

805095 FIRST NATIONAL BANK OF JEANERETTE ................................................... $5 ..............................

805079 JP MORGAN CHASE ELT TTEE LELA ......................................................... ($123) ..............................

834092 M&T BANK ELT PHEAA LOAN TRUST I ..................................................... ($192) $0

833934 ZIONS BANK ELT NELNET TRUST ............................................................. ($254) $0

804959 CLS-NATIONAL CITY BANK KENTUCKY ..................................................... ($727) $0

825600 NEW JERSEY HIGHER EDUCA ASST AUTH ................................................ ($2,121) ..............................

90

2005 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

834170 BANK OF NY ELT EDSOUTH ..................................................................... ($3,374) $0

833659 US BANK ELT THEA INC ........................................................................... ($6,148) ..............................

833495 ZIONS ELT EMT CORP .............................................................................. ($654,253) $0

833617 US BANK ELT EFSI ................................................................................... ($830,817) ..............................

Total ................................................................................................ $911,222,291 $15,443,268,122

2004 9.5 SAP SUMMARY 

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal Balance 

833500 WELLS FARGO ELT NELNET ED LOAN FUND ............................................ $165,964,491 $3,339,192,122

828924 AES/PHEAA ............................................................................................... $94,245,479 $2,311,383,351

833691 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $58,945,506 $366,796,730

833948 BANK OF NY ELT EDSOUTH ..................................................................... $43,963,416 $797,497,368

826688 KENTUCKY HIGHER ED STUDENT LOAN COR ........................................... $41,119,877 $1,070,239,627

830075 VSAC EDUCATION LOAN FINANCE PROGRAM ........................................... $32,826,782 $740,944,702

831008 STUDENT LOAN FUNDING US BANK ELT .................................................. $31,037,558 $475,709,505

827825 IOWA STUDENT LOAN LIQUIDITY CORP .................................................... $30,830,826 $683,631,789

830630 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $29,684,151 $550,761,841

820164 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $26,896,311 $504,522,280

832095 WELLS FARGO ELT PANHANDLE PLAINS .................................................. $22,516,965 $514,752,201

825585 MICHIGAN HIGHER EDUCATION STUD LOAN ............................................ $21,164,723 $489,247,950

834097 WELLS FARGO ELT NTHEA INC ................................................................ $18,031,831 $509,801,570

828863 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $16,651,011 $317,323,001

833806 US BANK ELT BHEA ................................................................................. $13,898,231 $517,184,628

820163 UNION BANK CA ELT CHELA FUND II (TE) ............................................... $11,262,397 $215,890,951

826717 UTAH STATE BOARD OF REGENTS ........................................................... $11,121,882 $244,121,663

829769 UTAH STATE BOARD OF REGENTS ........................................................... $10,717,805 $204,570,100

899980 INDIANA SECONDARY MARKET ................................................................. $10,700,910 $271,214,078

827866 COLLEGEINVEST ....................................................................................... $10,679,367 $254,431,325

831692 STUDENT LOAN FUNDING US BANK ELT .................................................. $10,466,391 $166,146,221

833455 ZIONS FNB ELT NMEAF ............................................................................ $10,328,327 ..............................

833016 SC STUDENT LOAN-93 RES (SL03) .......................................................... $9,097,091 $201,738,488

830631 STUDENT LOAN FUNDING US BANK ELT .................................................. $8,719,417 $142,499,296

833405 US BANK ELT ED LOANS INC ................................................................... $8,253,708 $169,965,769

833211 BANK OF NY ELT GTHEA .......................................................................... $7,361,585 $164,006,075

826509 ARKANSAS STUDENT LOAN AUTHORITY ................................................... $7,044,031 $182,739,742

826351 ILL DESIGNATED ACCOUNT PURCHASE PR .............................................. $6,985,563 $117,024,701

826764 INDUSTRIAL COMMISSION ........................................................................ $6,596,849 $103,371,995

831245 SOUTHWEST STUDENT SRV TRUST WFB ELT ........................................... $5,934,696 $190,947,186

831299 STUDENT LOAN FUNDING US BANK ELT .................................................. $5,719,413 $93,090,614

830344 WELLS FARGO ELT MHESAC ..................................................................... $5,301,677 $114,205,552

822717 NEW MEXICO EDUC ASST FOUNDATION ................................................... $4,999,746 $323,123,068

832934 BANK OF NY ELT GTHEA (93AB) .............................................................. $4,977,023 $86,411,002

808780 FIFTH THIRD ELT SLFR MD 10907A ......................................................... $4,939,979 $75,846,587

821628 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $4,436,641 $82,972,203

832919 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $4,434,016 $77,916,222

821666 WELLS FARGO ELT FOR SLAAA ................................................................ $4,204,932 $69,862,785

828868 TRUSTMARK BANK ELT MHEAC ................................................................ $3,929,426 $87,712,640

833088 BANK ONE NA TRUSTEE FOR NTHEA ....................................................... $3,899,945 ..............................

833017 S C STUDENT LLR .................................................................................... $3,353,552 $56,735,313

828577 RHODE ISLAND STUDENT LOAN AUTHORITY ............................................ $3,329,379 $95,024,933

833264 WELLS FARGO ELT STHEA INC ................................................................. $3,063,498 $69,366,228

827283 WYOMING STUDENT LOAN CORPORATION ................................................ $2,897,287 $70,928,544

833741 WELLS FARGO ELT CTSLC LLC ................................................................ $2,883,579 $66,312,905

821623 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $2,596,843 $45,241,468

834023 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $2,490,650 $117,047,788

828476 UTAH STATE BOARD OF REGENTS ........................................................... $2,469,654 $52,740,015

91

2004 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

829691 ZIONS BANK ELT SLFA-WA INC ................................................................ $2,372,818 $41,300,532

825659 OKLAHOMA STUDENT LOAN AUTHORITY ................................................... $2,173,014 $35,716,015

813285 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $2,061,163 $41,199,973

834099 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $1,901,702 $70,847,326

833347 BANK OF NY ELT PANHANDLE PLAINS HEA ............................................. $1,880,185 $32,971,477

831387 BANK OF MISSISSIPPI ELT MHEAC ........................................................... $1,643,182 $27,783,192

832339 BANK OF NY ELT GTHEA (92AB) .............................................................. $1,623,020 $33,822,916

812089 TEXAS HIGHER EDUCATION COORD BOARD ............................................ $1,544,534 $29,772,965

831640 STUDENT LOAN FUNDING US BANK ELT .................................................. $1,430,866 $22,186,105

826966 ALASKA (ACPE) ......................................................................................... $1,428,616 $31,348,683

805178 BANK OF NY ELT TTEE LELA .................................................................... $1,374,494 $33,308,294

830351 SC STUDENT LOAN CORP (SL05) ............................................................. $1,300,524 $32,011,598

830628 IDAPP ....................................................................................................... $1,257,000 $39,944,500

831593 JPMORGAN CHASE ELT GTSLC (96AB) ..................................................... $1,246,822 $16,390,928

821614 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $963,442 $14,727,917

830248 UTAH STATE BOARD OF REGENTS/STNF .................................................. $953,652 $22,537,458

831300 MELMAC LLC ZIONS BANK ELT ................................................................ $929,420 $31,794,957

833668 SC STUDENT LOAN CORP (LL05) ............................................................. $877,654 $12,686,042

833617 US BANK ELT EFSI ................................................................................... $834,516 $0

834086 WELLS FARGO ELT BRAZOS HEA ............................................................. $804,451 $54,471,862

807037 COLLEGE FOUNDATION INC ...................................................................... $637,097 $11,596,990

832776 JPMORGAN CHASE ELT SMS CORP—HI .................................................. $562,109 $13,814,741

831785 STUDENT LOAN FUNDING US BANK ELT .................................................. $490,083 $7,437,095

832765 WELLS FARGO BANK ELT NMEAF ............................................................. $470,140 ..............................

834096 BANCORPSOUTH ELT MHEAC ................................................................... $422,949 $17,455,990

829189 ALABAMA HIGHER EDUCATION LOAN CORP ............................................. $413,647 $7,026,190

805079 JP MORGAN CHASE ELT TTEE LELA ......................................................... $267,789 $5,134

823817 JPMORGAN CHASE ELT BRAZOS HEA ...................................................... $219,454 $0

827116 SLF OF IDAHO MARKETING ASSN INC ...................................................... $198,544 $5,087,693

828875 COLLEGEINVEST ....................................................................................... $159,206 $2,152,006

834095 TRUSTMARK ELT MHEAC .......................................................................... $137,782 $10,896,666

833174 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $73,994 $2,149,982

829064 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $68,553 $1,327,959

831453 US BANK ELT EDAMERICA ....................................................................... $54,509 $5,109

833495 ZIONS ELT EMT CORP .............................................................................. $17,408 $0

828200 M H E S A C ............................................................................................ $15,674 $1,388,099

829988 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $4,933 $68,418

824573 ZIONS BANK ELT EFS FINANCE CO .......................................................... $4,653 ..............................

808717 JPMORGAN CHASE NA ELT BRAZOS HEA IN ............................................ $3,985 $0

804959 CLS-NATIONAL CITY BANK KENTUCKY ..................................................... $2,605 $11,337

831119 MO HIGHER ED LOAN AUTHORITY ........................................................... $994 $14,332

832057 JPMORGAN CHASE ELT GTSLC ................................................................. $445 $30,977

806466 STATE BANK OF FAIRMONT ...................................................................... $41 ..............................

818119 FARMERS & MERCHANTS STATE BANK ................................................... $9 ..............................

832775 JP MORGANCHASE ELT USA GROUP SMS ................................................ $2 ..............................

821347 OREGONIANS CU ...................................................................................... ($11) ..............................

823990 FAMILY CREDIT UNION ............................................................................. ($30) ..............................

833078 US BANK ELT BSFC .................................................................................. ($66) ..............................

813020 MELLON BANK MARYLAND REGION ......................................................... ($117) ..............................

828384 THE FIRST NATIONAL BANK/BALLINGER ................................................... ($123) ..............................

809747 MELLON BANK NA (WESTERN REGION) ................................................... ($140) ..............................

828737 COUNTYWIDE FEDERAL CREDIT UNION .................................................... ($156) ..............................

822239 COMPASS BANK ....................................................................................... ($228) ..............................

804091 IOWA FALLS STATE BANK ......................................................................... ($235) ..............................

805149 BANK OF NY ELT TTEE LELA .................................................................... ($258) $0

828729 CENTRAL MICHIGAN COMMUNITY FED CR U ........................................... ($338) ..............................

828148 UNIVERSITY FEDERAL CREDIT UNION ...................................................... ($512) $0

833295 TAIWANESE AMERICAN FCU ..................................................................... ($719) ..............................

834092 M&T BANK ELT PHEAA LOAN TRUST I ..................................................... ($801) $0

827291 PEOPLES BANK AND TRUST COMPANY .................................................... ($927) ..............................

831783 COMMUNITY CHOICE CREDIT UNION ....................................................... ($1,780) ..............................

825600 NEW JERSEY HIGHER EDUCA ASST AUTH ................................................ ($2,165) $0

92

2004 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

833659 US BANK ELT THEA INC ........................................................................... ($2,187) ..............................

831651 FIRST NATIONAL BANK OF COWETA ......................................................... ($2,664) $0

817717 BRIDGETON ONIZED FCU ......................................................................... ($3,658) ..............................

834047 UNIVERSITY OF NORTHERN COLORADO ................................................... ($4,473) ..............................

804655 GREENSBURG STATE BANK ...................................................................... ($4,907) ..............................

827952 EXCHANGE STATE BANK ........................................................................... ($10,799) ..............................

804134 UNITED METHOD MINISTERS’ CU ............................................................. ($35,323) ..............................

Total ................................................................................................ $885,729,480 $18,107,485,580

2003 9.5 SAP SUMMARY 

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal Balance 

833691 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $78,675,283 $1,178,697,172

828924 AES/PHEAA ............................................................................................... $60,831,265 $1,474,903,695

833500 WELLS FARGO ELT NELNET ED LOAN FUND ............................................ $38,362,110 $1,713,168,009

831008 STUDENT LOAN FUNDING US BANK ELT .................................................. $32,625,958 $613,901,913

831453 US BANK ELT EDAMERICA ....................................................................... $27,910,960 $2,818,796

820164 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $27,340,787 $579,720,816

827825 IOWA STUDENT LOAN LIQUIDITY CORP .................................................... $18,218,039 $371,770,704

830075 VSAC EDUCATION LOAN FINANCE PROGRAM ........................................... $16,674,557 $376,722,853

825585 MICHIGAN HIGHER EDUCATION STUD LOAN ............................................ $16,297,070 $433,979,096

828863 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $16,115,479 $343,105,897

820163 UNION BANK CA ELT CHELA FUND II (TE) ............................................... $14,667,627 $279,486,256

833088 BANK ONE NA TRUSTEE FOR NTHEA ....................................................... $14,565,432 $523,844,323

830630 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $13,606,742 $443,675,943

833948 BANK OF NY ELT EDSOUTH ..................................................................... $12,409,428 $731,856,034

833455 ZIONS FNB ELT NMEAF ............................................................................ $11,937,524 $264,347,556

832095 WELLS FARGO ELT PANHANDLE PLAINS .................................................. $10,728,192 $324,372,129

831692 STUDENT LOAN FUNDING US BANK ELT .................................................. $9,838,752 $168,001,806

899980 INDIANA SECONDARY MARKET ................................................................. $9,263,013 $197,918,837

829769 UTAH STATE BOARD OF REGENTS ........................................................... $8,544,200 $169,792,082

830631 STUDENT LOAN FUNDING US BANK ELT .................................................. $8,318,284 $139,643,822

827866 COLLEGEINVEST ....................................................................................... $8,091,712 $208,334,230

826351 ILL DESIGNATED ACCOUNT PURCHASE PR .............................................. $7,899,572 $140,511,889

826717 UTAH STATE BOARD OF REGENTS ........................................................... $7,861,983 $229,995,733

833016 SC STUDENT LOAN-93 RES (SL03) .......................................................... $6,764,299 $68,108,896

833211 BANK OF NY ELT GTHEA .......................................................................... $6,465,973 $163,391,061

823817 JPMORGAN CHASE ELT BRAZOS HEA ...................................................... $5,883,464 $136,411,025

821628 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $5,408,653 $112,302,037

831299 STUDENT LOAN FUNDING US BANK ELT .................................................. $5,089,830 $89,305,736

826688 KENTUCKY HIGHER ED STUDENT LOAN COR ........................................... $5,073,105 $136,312,611

826764 INDUSTRIAL COMMISSION ........................................................................ $4,499,494 $104,907,072

808717 JPMORGAN CHASE NA ELT BRAZOS HEA IN ............................................ $4,310,059 $35,280,976

821666 WELLS FARGO ELT FOR SLAAA ................................................................ $4,284,619 $68,465,008

808780 FIFTH THIRD ELT SLFR MD 10907A ......................................................... $4,173,252 $65,719,217

830344 WELLS FARGO ELT MHESAC ..................................................................... $4,024,835 $108,386,740

832934 BANK OF NY ELT GTHEA (93AB) .............................................................. $3,860,891 $84,468,523

821623 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $3,235,656 $61,249,458

833405 US BANK ELT ED LOANS INC ................................................................... $3,173,883 $67,452,344

832919 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $3,122,903 $60,589,875

831387 BANK OF MISSISSIPPI ELT MHEAC ........................................................... $2,692,150 $63,307,248

833017 S C STUDENT LLR .................................................................................... $2,532,399 $35,626,528

828868 TRUSTMARK BANK ELT MHEAC ................................................................ $2,419,052 $77,484,091

828577 RHODE ISLAND STUDENT LOAN AUTHORITY ............................................ $2,400,484 $73,583,427

833741 WELLS FARGO ELT CTSLC LLC ................................................................ $2,297,619 $58,158,647

829691 ZIONS BANK ELT SLFA-WA INC ................................................................ $2,119,020 $49,083,113

813285 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $1,923,004 $48,685,608

93

2003 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

826509 ARKANSAS STUDENT LOAN AUTHORITY ................................................... $1,921,244 $74,211,364

812089 TEXAS HIGHER EDUCATION COORD BOARD ............................................ $1,893,581 $36,523,386

825659 OKLAHOMA STUDENT LOAN AUTHORITY ................................................... $1,822,052 $38,174,126

833347 BANK OF NY ELT PANHANDLE PLAINS HEA ............................................. $1,791,907 $28,743,753

833266 BANK ONE ELT STHEA .............................................................................. $1,773,145 $47,586,033

831640 STUDENT LOAN FUNDING US BANK ELT .................................................. $1,547,340 $22,660,287

805178 BANK OF NY ELT TTEE LELA .................................................................... $1,518,773 $40,763,210

831245 SOUTHWEST STUDENT SRV TRUST WFB ELT ........................................... $1,314,890 $43,422,371

821614 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $1,300,545 $19,643,252

830628 IDAPP ....................................................................................................... $1,286,647 $41,433,204

832339 BANK OF NY ELT GTHEA (92AB) .............................................................. $1,285,713 $29,806,824

822717 NEW MEXICO EDUC ASST FOUNDATION ................................................... $1,151,503 $28,272,251

832765 WELLS FARGO BANK ELT NMEAF ............................................................. $999,725 $21,491,750

834023 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $970,155 $129,784,496

807037 COLLEGE FOUNDATION INC ...................................................................... $754,079 $14,997,434

833806 US BANK ELT BHEA ................................................................................. $693,925 $26,587,035

831593 JPMORGAN CHASE ELT GTSLC (96AB) ..................................................... $689,561 $13,148,045

830248 UTAH STATE BOARD OF REGENTS/STNF .................................................. $629,224 $14,979,018

831785 STUDENT LOAN FUNDING US BANK ELT .................................................. $558,738 $7,596,011

826966 ALASKA (ACPE) ......................................................................................... $478,661 $14,306,569

832776 JPMORGAN CHASE ELT SMS CORP—HI .................................................. $432,781 $13,059,569

827116 SLF OF IDAHO MARKETING ASSN INC ...................................................... $310,113 $8,096,832

830351 SC STUDENT LOAN CORP (SL05) ............................................................. $259,730 $33,562,244

828476 UTAH STATE BOARD OF REGENTS ........................................................... $171,218 $11,966,285

829064 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $106,879 $2,323,599

833174 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $101,738 $2,728,290

828875 COLLEGEINVEST ....................................................................................... $94,662 $2,810,561

833668 SC STUDENT LOAN CORP (LL05) ............................................................. $88,623 $14,116,397

805079 JP MORGAN CHASE ELT TTEE LELA ......................................................... $82,899 $1,459,695

831119 MO HIGHER ED LOAN AUTHORITY ........................................................... $65,524 $51,478

828200 M H E S A C ............................................................................................ $24,735 $2,047,943

804134 UNITED METHOD MINISTERS’ CU ............................................................. $24,050 $493,504

832260 WELLS FARGO ELT MHESAC ..................................................................... $8,280 ..............................

829988 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $6,469 $87,443

827952 EXCHANGE STATE BANK ........................................................................... $4,925 $55,617

804655 GREENSBURG STATE BANK ...................................................................... $4,907 $119,397

834047 UNIVERSITY OF NORTHERN COLORADO ................................................... $4,556 $756,092

817717 BRIDGETON ONIZED FCU ......................................................................... $2,270 ..............................

831651 FIRST NATIONAL BANK OF COWETA ......................................................... $2,066 $29,014

817380 TVA CU ..................................................................................................... $1,848 ..............................

819907 JP MORGAN CHASE ELT TTEE LELA ......................................................... $1,841 ..............................

804959 CLS-NATIONAL CITY BANK KENTUCKY ..................................................... $1,201 $26,102

804071 HARTWICK STATE BANK ........................................................................... $1,132 ..............................

833295 TAIWANESE AMERICAN FCU ..................................................................... $839 $15,843

832057 JPMORGAN CHASE ELT GTSLC ................................................................. $826 $35,060

827291 PEOPLES BANK AND TRUST COMPANY .................................................... $498 $11,009

830427 JP MORGAN CHASE ELT TTEE LELA ......................................................... $313 $0

828729 CENTRAL MICHIGAN COMMUNITY FED CR U ........................................... $262 $11,279

806466 STATE BANK OF FAIRMONT ...................................................................... $232 $10,005

828737 COUNTYWIDE FEDERAL CREDIT UNION .................................................... $176 $7,463

828384 THE FIRST NATIONAL BANK/BALLINGER ................................................... $123 $4,175

831455 STUDENT LOAN FUNDING US BANK ELT .................................................. $67 ..............................

815678 US BANK NA ............................................................................................. $63 ..............................

808524 CITY BANK & TRUST CO .......................................................................... $20 ..............................

821347 OREGONIANS CU ...................................................................................... $11 ..............................

833193 S C STUDENT LOAN-TAXABLE .................................................................. $10 $814

833307 S C STUDENT LOAN TAXABLE-LLR ........................................................... $6 ..............................

833934 ZIONS BANK ELT NELNET TRUST ............................................................. $4 $0

805095 FIRST NATIONAL BANK OF JEANERETTE ................................................... $2 ..............................

833495 ZIONS ELT EMT CORP .............................................................................. $2 $0

808237 FIRST NATIONAL BANK & TRUST COMPANY ............................................ $0 $37,252

807743 CITIBANK ELT STUDENT LOAN CORP ....................................................... ($1) ..............................

94

2003 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

831056 WELLS FARGO ELT PANHANDLE PLAINS SL ............................................. ($44) ..............................

829486 ESF/TRUSTMARK NATIONAL BANK ............................................................ ($45) ..............................

824821 UNIVERSITY OF DENVER .......................................................................... ($59) ..............................

828949 CBW SCHOOLS FEDERAL CREDIT UNION ................................................. ($355) $0

824573 ZIONS BANK ELT EFS FINANCE CO .......................................................... ($368) ..............................

828947 WYSE FEDERAL CREDIT UNION ................................................................ ($713) ..............................

825600 NEW JERSEY HIGHER EDUCA ASST AUTH ................................................ ($2,894) $0

805149 BANK OF NY ELT TTEE LELA .................................................................... ($4,173) $0

822648 MICHIGAN RURAL REHABILITATION CORPO ............................................. ($6,465) $624,081

822239 COMPASS BANK ....................................................................................... ($12,755) $0

826651 UNIVERSITY OF MIAMI .............................................................................. ($56,392) ..............................

831821 WELLS FARGO ELT PANHANDLE PLAINS .................................................. ($79,084) ..............................

829189 ALABAMA HIGHER EDUCATION LOAN CORP ............................................. ($518,861) $11,175,694

827283 WYOMING STUDENT LOAN CORPORATION ................................................ ($867,884) $71,440,289

833816 US BANK ELT OHIO CENTRIC ................................................................... ($1,282,246) ..............................

831300 MELMAC LLC ZIONS BANK ELT ................................................................ ($2,788,259) $38,121,088

832994 NEW HAMPSHIRE HIGHER ED LOAN CORP .............................................. ($11,534,867) ..............................

Total ................................................................................................ $565,570,456 $13,588,263,365

2002 9.5 SAP SUMMARY 

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal Balance 

833691 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $81,667,972 $1,199,720,541

828924 AES/PHEAA ............................................................................................... $28,291,028 $1,189,679,093

831453 US BANK ELT EDAMERICA ....................................................................... $23,565,189 $765,567,958

831008 STUDENT LOAN FUNDING US BANK ELT .................................................. $19,912,337 $663,041,437

825585 MICHIGAN HIGHER EDUCATION STUD LOAN ............................................ $14,112,086 $497,383,781

833500 WELLS FARGO ELT NELNET ED LOAN FUND ............................................ $13,309,163 $376,465,236

820164 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $13,234,653 $543,758,155

827825 IOWA STUDENT LOAN LIQUIDITY CORP .................................................... $12,547,774 $373,788,651

828863 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $12,040,378 $416,594,983

830075 VSAC EDUCATION LOAN FINANCE PROGRAM ........................................... $11,528,341 $393,420,365

830630 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $9,723,594 $321,041,286

833088 BANK ONE NA TRUSTEE FOR NTHEA ....................................................... $9,247,952 $366,431,965

829769 UTAH STATE BOARD OF REGENTS ........................................................... $6,955,446 $192,781,410

831692 STUDENT LOAN FUNDING US BANK ELT .................................................. $6,935,880 $164,342,909

826351 ILL DESIGNATED ACCOUNT PURCHASE PR .............................................. $6,822,046 $183,033,936

832994 NEW HAMPSHIRE HIGHER ED LOAN CORP .............................................. $6,618,184 $209,999,546

820163 UNION BANK CA ELT CHELA FUND II (TE) ............................................... $6,411,766 $383,002,395

827866 COLLEGEINVEST ....................................................................................... $6,293,324 $217,655,698

830631 STUDENT LOAN FUNDING US BANK ELT .................................................. $6,253,642 $141,191,180

899980 INDIANA SECONDARY MARKET ................................................................. $6,200,874 $199,779,668

833016 SC STUDENT LOAN-93 RES (SL03) .......................................................... $6,107,365 $182,447,646

833455 ZIONS FNB ELT NMEAF ............................................................................ $5,776,014 $160,797,721

823817 JPMORGAN CHASE ELT BRAZOS HEA ...................................................... $4,738,633 $155,255,245

826688 KENTUCKY HIGHER ED STUDENT LOAN COR ........................................... $4,374,446 $143,543,273

832095 WELLS FARGO ELT PANHANDLE PLAINS .................................................. $4,333,056 $157,025,862

833211 BANK OF NY ELT GTHEA .......................................................................... $4,332,264 $158,999,495

826717 UTAH STATE BOARD OF REGENTS ........................................................... $4,272,288 $147,798,283

831299 STUDENT LOAN FUNDING US BANK ELT .................................................. $3,450,165 $76,792,814

829691 ZIONS BANK ELT SLFA-WA INC ................................................................ $3,315,020 $39,390,913

808717 JPMORGAN CHASE NA ELT BRAZOS HEA IN ............................................ $2,921,723 $99,166,652

813285 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $2,894,412 $62,704,364

821628 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $2,870,920 $143,926,230

830344 WELLS FARGO ELT MHESAC ..................................................................... $2,768,850 $95,909,968

821666 WELLS FARGO ELT FOR SLAAA ................................................................ $2,742,329 $72,532,145

832934 BANK OF NY ELT GTHEA (93AB) .............................................................. $2,601,631 $84,339,893

95

2002 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

831387 BANK OF MISSISSIPPI ELT MHEAC ........................................................... $2,509,386 $86,137,540

832339 BANK OF NY ELT GTHEA (92AB) .............................................................. $2,359,482 $28,688,240

833741 WELLS FARGO ELT CTSLC LLC ................................................................ $2,214,351 $72,080,828

808780 FIFTH THIRD ELT SLFR MD 10907A ......................................................... $2,127,984 $80,246,304

828577 RHODE ISLAND STUDENT LOAN AUTHORITY ............................................ $2,048,687 $79,105,290

821614 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $1,995,256 $35,743,670

812089 TEXAS HIGHER EDUCATION COORD BOARD ............................................ $1,955,774 $56,616,863

827283 WYOMING STUDENT LOAN CORPORATION ................................................ $1,923,118 $68,447,523

826764 INDUSTRIAL COMMISSION ........................................................................ $1,879,127 $84,503,279

831300 MELMAC LLC ZIONS BANK ELT ................................................................ $1,877,687 $118,301,571

833405 US BANK ELT ED LOANS INC ................................................................... $1,845,806 $47,947,511

822717 NEW MEXICO EDUC ASST FOUNDATION ................................................... $1,774,217 $39,853,643

832919 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $1,768,789 $47,272,316

828868 TRUSTMARK BANK ELT MHEAC ................................................................ $1,482,907 $66,450,618

832765 WELLS FARGO BANK ELT NMEAF ............................................................. $1,407,549 $44,862,141

825659 OKLAHOMA STUDENT LOAN AUTHORITY ................................................... $1,327,184 $35,151,913

821623 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $1,311,898 $82,866,729

831640 STUDENT LOAN FUNDING US BANK ELT .................................................. $1,165,453 $26,946,686

830628 IDAPP ....................................................................................................... $1,098,471 $50,103,526

833017 S C STUDENT LLR .................................................................................... $1,088,009 $37,743,174

826509 ARKANSAS STUDENT LOAN AUTHORITY ................................................... $1,052,635 $50,377,767

833816 US BANK ELT OHIO CENTRIC ................................................................... $1,047,493 $25,234,323

833266 BANK ONE ELT STHEA .............................................................................. $1,037,952 $47,707,530

829189 ALABAMA HIGHER EDUCATION LOAN CORP ............................................. $937,782 $17,687,180

833347 BANK OF NY ELT PANHANDLE PLAINS HEA ............................................. $767,074 $33,578,370

830427 JP MORGAN CHASE ELT TTEE LELA ......................................................... $693,388 $5,804

805178 BANK OF NY ELT TTEE LELA .................................................................... $692,530 $48,737,387

807037 COLLEGE FOUNDATION INC ...................................................................... $641,218 $19,385,396

833806 US BANK ELT BHEA ................................................................................. $641,176 $27,940,728

830248 UTAH STATE BOARD OF REGENTS/STNF .................................................. $552,491 $20,474,252

831593 JPMORGAN CHASE ELT GTSLC (96AB) ..................................................... $495,021 $12,387,403

830351 SC STUDENT LOAN CORP (SL05) ............................................................. $488,147 $87,161,063

827116 SLF OF IDAHO MARKETING ASSN INC ...................................................... $359,109 $12,985,555

831245 SOUTHWEST STUDENT SRV TRUST WFB ELT ........................................... $353,450 $14,560,598

831785 STUDENT LOAN FUNDING US BANK ELT .................................................. $340,856 $10,200,575

832776 JPMORGAN CHASE ELT SMS CORP—HI .................................................. $265,016 $12,932,655

805149 BANK OF NY ELT TTEE LELA .................................................................... $215,634 $36,009

833668 SC STUDENT LOAN CORP (LL05) ............................................................. $186,227 $0

831119 MO HIGHER ED LOAN AUTHORITY ........................................................... $110,230 $2,105,226

829064 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $104,709 $3,753,045

833174 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $102,152 $3,835,306

832260 WELLS FARGO ELT MHESAC ..................................................................... $94,734 $8,379,925

819907 JP MORGAN CHASE ELT TTEE LELA ......................................................... $87,619 $2,408,569

805079 JP MORGAN CHASE ELT TTEE LELA ......................................................... $77,102 $2,028,243

826651 UNIVERSITY OF MIAMI .............................................................................. $56,392 $2,749,696

828875 COLLEGEINVEST ....................................................................................... $10,690 $130,472

826966 ALASKA (ACPE) ......................................................................................... $10,628 $2,500,988

804134 UNITED METHOD MINISTERS’ CU ............................................................. $8,380 $779,857

827952 EXCHANGE STATE BANK ........................................................................... $5,874 $167,485

817380 TVA CU ..................................................................................................... $2,545 $63,742

822648 MICHIGAN RURAL REHABILITATION CORPO ............................................. $2,506 $50,275

828200 M H E S A C ............................................................................................ $2,379 $178,199

817717 BRIDGETON ONIZED FCU ......................................................................... $1,021 $85,886

832057 JPMORGAN CHASE ELT GTSLC ................................................................. $705 $42,512

831455 STUDENT LOAN FUNDING US BANK ELT .................................................. $507 $10,500

831651 FIRST NATIONAL BANK OF COWETA ......................................................... $503 $48,753

831419 CHASE TEXAS AS TRUSTEE FOR BHEA .................................................... $294 ..............................

827291 PEOPLES BANK AND TRUST COMPANY .................................................... $277 $12,902

829561 B & V CREDIT UNION .............................................................................. $229 ..............................

830308 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $178 ..............................

833295 TAIWANESE AMERICAN FCU ..................................................................... $106 $8,124

806466 STATE BANK OF FAIRMONT ...................................................................... $80 $14,200

96

2002 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

828729 CENTRAL MICHIGAN COMMUNITY FED CR U ........................................... $77 $12,679

829076 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $53 ..............................

822991 MONROE TELCO FEDERAL CREDIT UNION ............................................... $20 ..............................

831819 JP MORGAN CHASE ELT TTEE LELA ......................................................... $6 ..............................

832775 JP MORGANCHASE ELT USA GROUP SMS ................................................ $5 $0

833702 ZIONS ELT NELNET II ............................................................................... $1 $0

808036 M & T BANK EDUCATIONAL LENDING ...................................................... ($0) ..............................

831484 UNION BANK & TRUST—IHELP ............................................................... ($7) $0

824573 ZIONS BANK ELT EFS FINANCE CO .......................................................... ($57) $0

825600 NEW JERSEY HIGHER EDUCA ASST AUTH ................................................ ($1,324) $0

822318 CABOT & NOI EMPLOYEES CREDIT UNION .............................................. ($1,482) ..............................

833575 EDUCATION SERVICES FOUNDATION ........................................................ ($1,913) ..............................

833789 ZIONS ELT STUDENT LN FIN ASSOC INC ................................................. ($38,903) ..............................

829988 NELLIE MAE JPMORGAN CHASE ELT ........................................................ ($230,280) $150,078

833207 STUDENT LOAN FUNDING US BANK ELT .................................................. ($253,731) ..............................

829626 STUDENT LOAN FUNDING US BANK ELT .................................................. ($751,211) $0

811077 ZIONS FIRST NATIONAL BANK FOR CHELA .............................................. ($1,592,433) $0

Total ......................................................................................................... $402,907,734 $12,239,289,319

2001 9.5 SAP SUMMARY 

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal Balance 

833691 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $53,524,019 $2,387,488,335

828924 AES/PHEAA ............................................................................................... $12,793,896 $883,732,849

831453 US BANK ELT EDAMERICA ....................................................................... $10,124,992 $604,533,520

820164 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $9,827,596 $686,781,785

833500 WELLS FARGO ELT NELNET ED LOAN FUND ............................................ $6,535,159 $392,997,065

825585 MICHIGAN HIGHER EDUCATION STUD LOAN ............................................ $6,347,999 $423,481,750

828863 MISSOURI HIGHER EDUCATION LOAN AUTH ............................................ $6,314,979 $430,156,562

830075 VSAC EDUCATION LOAN FINANCE PROGRAM ........................................... $6,121,467 $377,589,887

827825 IOWA STUDENT LOAN LIQUIDITY CORP .................................................... $5,988,363 $378,466,805

833088 BANK ONE NA TRUSTEE FOR NTHEA ....................................................... $5,796,546 $400,878,120

831008 STUDENT LOAN FUNDING US BANK ELT .................................................. $5,239,395 $510,058,708

830630 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $5,009,769 $309,829,380

826351 ILL DESIGNATED ACCOUNT PURCHASE PR .............................................. $4,174,803 $224,857,602

831300 MELMAC LLC ZIONS BANK ELT ................................................................ $4,162,222 $402,406,577

827866 COLLEGEINVEST ....................................................................................... $3,380,096 $219,952,005

829769 UTAH STATE BOARD OF REGENTS ........................................................... $3,112,834 $203,785,301

899980 INDIANA SECONDARY MARKET ................................................................. $2,856,104 $189,416,162

823817 JPMORGAN CHASE ELT BRAZOS HEA ...................................................... $2,700,075 $179,705,241

833016 SC STUDENT LOAN-93 RES (SL03) .......................................................... $2,685,642 $249,079,937

833455 ZIONS FNB ELT NMEAF ............................................................................ $2,524,096 $149,800,537

832095 WELLS FARGO ELT PANHANDLE PLAINS .................................................. $2,396,021 $171,596,119

830631 STUDENT LOAN FUNDING US BANK ELT .................................................. $2,374,818 $149,824,308

832994 NEW HAMPSHIRE HIGHER ED LOAN CORP .............................................. $2,317,468 $140,033,914

831692 STUDENT LOAN FUNDING US BANK ELT .................................................. $2,235,889 $149,938,212

826717 UTAH STATE BOARD OF REGENTS ........................................................... $2,155,198 $131,670,508

826688 KENTUCKY HIGHER ED STUDENT LOAN COR ........................................... $2,154,988 $162,440,981

833211 BANK OF NY ELT GTHEA .......................................................................... $2,101,807 $151,622,974

829691 ZIONS BANK ELT SLFA-WA INC ................................................................ $2,063,603 $149,325,958

821614 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $1,920,994 $99,911,567

813285 UNION BK CA ELT CHELA FUND I (TEFFC) .............................................. $1,629,630 $84,447,675

832339 BANK OF NY ELT GTHEA (92AB) .............................................................. $1,533,708 $99,814,098

831387 BANK OF MISSISSIPPI ELT MHEAC ........................................................... $1,469,076 $106,978,561

831299 STUDENT LOAN FUNDING US BANK ELT .................................................. $1,356,174 $100,243,926

808717 JPMORGAN CHASE NA ELT BRAZOS HEA IN ............................................ $1,337,580 $93,774,412

812089 TEXAS HIGHER EDUCATION COORD BOARD ............................................ $1,280,057 $88,429,490

97

2001 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal

Balance 

821666 WELLS FARGO ELT FOR SLAAA ................................................................ $1,274,373 $72,551,318

822717 NEW MEXICO EDUC ASST FOUNDATION ................................................... $1,183,798 $85,316,233

828577 RHODE ISLAND STUDENT LOAN AUTHORITY ............................................ $1,179,089 $80,993,495

830344 WELLS FARGO ELT MHESAC ..................................................................... $1,121,260 $95,672,803

833405 US BANK ELT ED LOANS INC ................................................................... $1,103,936 $49,774,209

827283 WYOMING STUDENT LOAN CORPORATION ................................................ $1,103,641 $70,386,993

832765 WELLS FARGO BANK ELT NMEAF ............................................................. $882,179 $58,623,647

826764 INDUSTRIAL COMMISSION ........................................................................ $870,802 $58,332,770

829626 STUDENT LOAN FUNDING US BANK ELT .................................................. $813,579 $74,422,509

833741 WELLS FARGO ELT CTSLC LLC ................................................................ $764,872 $65,820,003

828868 TRUSTMARK BANK ELT MHEAC ................................................................ $743,141 $56,652,891

811077 ZIONS FIRST NATIONAL BANK FOR CHELA .............................................. $713,868 $41,371,174

830628 IDAPP ....................................................................................................... $697,461 $58,588,588

832934 BANK OF NY ELT GTHEA (93AB) .............................................................. $690,222 $43,100,831

832919 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $684,043 $38,039,909

829189 ALABAMA HIGHER EDUCATION LOAN CORP ............................................. $659,622 $43,115,591

825659 OKLAHOMA STUDENT LOAN AUTHORITY ................................................... $609,020 $36,549,218

833266 BANK ONE ELT STHEA .............................................................................. $569,571 $47,154,675

826509 ARKANSAS STUDENT LOAN AUTHORITY ................................................... $550,228 $56,040,820

831593 JPMORGAN CHASE ELT GTSLC (96AB) ..................................................... $525,176 $37,823,885

833017 S C STUDENT LLR .................................................................................... $518,309 $31,168,754

831640 STUDENT LOAN FUNDING US BANK ELT .................................................. $452,623 $26,241,986

830427 JP MORGAN CHASE ELT TTEE LELA ......................................................... $440,670 $33,132,107

830248 UTAH STATE BOARD OF REGENTS/STNF .................................................. $433,816 $36,148,666

805178 BANK OF NY ELT TTEE LELA .................................................................... $400,247 $22,781,127

833816 US BANK ELT OHIO CENTRIC ................................................................... $360,811 $34,042,490

807037 COLLEGE FOUNDATION INC ...................................................................... $349,386 $23,722,293

833806 US BANK ELT BHEA ................................................................................. $293,546 $22,819,434

833207 STUDENT LOAN FUNDING US BANK ELT .................................................. $255,185 ..............................

827116 SLF OF IDAHO MARKETING ASSN INC ...................................................... $246,450 $20,700,161

829988 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $245,335 $192,118

805149 BANK OF NY ELT TTEE LELA .................................................................... $238,293 $9,975,239

832776 JPMORGAN CHASE ELT SMS CORP—HI .................................................. $237,370 $19,902,582

833403 EDUCATION FUNDING ASSOCIATION, INC ................................................. $158,623 $0

833174 BANK OF NY ELT ALL STUDENT LOAN COR ............................................. $134,621 $5,068,945

833347 BANK OF NY ELT PANHANDLE PLAINS HEA ............................................. $130,289 $9,901,728

833668 SC STUDENT LOAN CORP (LL05) ............................................................. $122,875 $13,033,208

832260 WELLS FARGO ELT MHESAC ..................................................................... $107,605 $12,240,521

831119 MO HIGHER ED LOAN AUTHORITY ........................................................... $101,081 $6,345,508

831785 STUDENT LOAN FUNDING US BANK ELT .................................................. $87,112 $9,736,091

829064 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... $70,190 $5,767,364

831419 CHASE TEXAS AS TRUSTEE FOR BHEA .................................................... $66,990 $1,475,736

819907 JP MORGAN CHASE ELT TTEE LELA ......................................................... $45,997 $2,895,366

833789 ZIONS ELT STUDENT LN FIN ASSOC INC ................................................. $41,040 $3,493,355

805079 JP MORGAN CHASE ELT TTEE LELA ......................................................... $38,090 $2,422,919

832640 CHASE TEXAS AS TRUSTEE FOR BHEA .................................................... $25,065 $0

822239 COMPASS BANK ....................................................................................... $12,754 ..............................

821623 UNION BANK CA ELT CHELA FUND I (TEF) .............................................. $2,774 $7,513

833575 EDUCATION SERVICES FOUNDATION ........................................................ $1,913 $158,685

828200 M H E S A C ............................................................................................ $1,680 $239,257

822648 MICHIGAN RURAL REHABILITATION CORPO ............................................. $1,358 $56,982

817380 TVA CU ..................................................................................................... $1,311 $77,335

829561 B & V CREDIT UNION .............................................................................. $685 $45,031

833078 US BANK ELT BSFC .................................................................................. $545 $0

822318 CABOT & NOI EMPLOYEES CREDIT UNION .............................................. $520 $21,120

831455 STUDENT LOAN FUNDING US BANK ELT .................................................. $388 $34,725

832057 JPMORGAN CHASE ELT GTSLC ................................................................. $330 $72,680

829076 NELLIE MAE JPMORGAN CHASE ELT ........................................................ $217 $2,625

832347 BANK OF NY ELT GREATER TX FOUND .................................................... $211 ..............................

822991 MONROE TELCO FEDERAL CREDIT UNION ............................................... $39 $2,625

831819 JP MORGAN CHASE ELT TTEE LELA ......................................................... $24 $2,662

827800 CHASE TEXAS AS TRUSTEE FOR BHEA .................................................... $16 ..............................

98

2001 9.5 SAP SUMMARY—Continued

Lender 

Tax Exempt Loans 

Special Allowance

Payments 

Ending Principal Balance 

833093 BANK OF NY ELT COLLEGEINVEST ........................................................... ($0) $0

831245 SOUTHWEST STUDENT SRV TRUST WFB ELT ........................................... ($17) $0

830308 NELLIE MAE JPMORGAN CHASE ELT ........................................................ ($37) $3,401

810742 CITIZENS STATE BANK ............................................................................. ($71) ..............................

829077 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................... ($325) ..............................

825600 NEW JERSEY HIGHER EDUCA ASST AUTH ................................................ ($645) $0

Total ................................................................................................ $209,912,235 $13,009,314,732

99

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER 

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833253 JPMORGAN CHASE ELT SLMA TRUST MS181 ........................................................ $0 $1,802,329,592 $74,940,356,897 $1,802,329,592 $74,940,356,897826878 CITIBANK NA ELT STUDENT LOAN CORP ............................................................... $0 $315,682,238 $11,680,757,944 $315,682,238 $11,680,757,944833934 ZIONS BANK ELT NELNET TRUST .......................................................................... ($151) $311,440,494 $11,034,155,191 $311,440,343 $11,034,155,191833500 WELLS FARGO ELT NELNET ED LOAN FUND ......................................................... $158,373,973 $2,728,074,557 $53,056,233 $1,704,324,001 $211,430,206 $4,432,398,558807929 CITIBANK ELT SLC RECEIVABLES I ....................................................................... $0 $203,924,816 $7,773,270,449 $203,924,816 $7,773,270,449828924 AES/PHEAA ............................................................................................................ $59,627,998 $1,196,188,921 $141,365,788 $6,034,052,934 $200,993,786 $7,230,241,855807176 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $200,422,957 $8,375,680,811 $200,422,957 $8,375,680,811833806 US BANK ELT BHEA .............................................................................................. $10,511,074 $254,471,434 $174,175,727 $6,432,933,188 $184,686,801 $6,687,404,622833835 BANK OF NY ELT COLLEGIATE FUNDING S ........................................................... $0 $154,423,843 $4,463,175,468 $154,423,843 $4,463,175,468834072 SLM EDUCATION LOAN CORP ................................................................................ $0 $125,864,525 $1,171,619,774 $125,864,525 $1,171,619,774833733 JP MORGAN CHASE ELT COLLEGE LOAN CO ......................................................... $0 $121,803,417 $4,181,311,700 $121,803,417 $4,181,311,700833923 DEUTSCHE BANK ELT CLC .................................................................................... $0 $120,227,634 $3,910,655,210 $120,227,634 $3,910,655,210833529 US BANK ELT NORTHSTAR .................................................................................... $0 $118,004,365 $2,843,266,812 $118,004,365 $2,843,266,812830005 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $113,624,333 $4,551,023,831 $113,624,333 $4,551,023,831808851 DEUTSCHE BANK ELT ACCESS GROUP ................................................................. $0 $110,906,428 $3,148,735,025 $110,906,428 $3,148,735,025830630 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................................ $17,235,161 $307,516,895 $89,150,081 $1,833,104,447 $106,385,242 $2,140,621,342834071 SLM EDUCATION FINANCE CREDIT CORP ............................................................. $0 $84,223,286 $5,953,227,258 $84,223,286 $5,953,227,258834042 FIFTH THIRD ELT ED FUND CAP TRUST ................................................................ $0 $80,884,293 $2,248,300,950 $80,884,293 $2,248,300,950834023 MISSOURI HIGHER EDUCATION LOAN AUTH .......................................................... $1,529,182 $72,746,901 $73,983,094 $2,248,440,652 $75,512,276 $2,321,187,553833948 BANK OF NY ELT EDSOUTH ................................................................................... $30,940,457 $564,620,484 $44,019,921 $1,989,870,640 $74,960,378 $2,554,491,124833955 ZIONS FNB ELT GCO ED LOAN FUND TRUS .......................................................... $0 $68,007,757 $2,385,571,562 $68,007,757 $2,385,571,562834117 BANK OF NY ELT GOAL FINANCIAL LLC ................................................................ $0 $65,510,966 $2,843,243,476 $65,510,966 $2,843,243,476834223 JPMORGAN CHASE BANK ELT WACHOVIA LL ......................................................... $0 $59,630,959 $3,110,590,712 $59,630,959 $3,110,590,712833860 FIFTH THIRD ELT STUDENT LOAN XPRESS ............................................................ $0 $57,516,028 $1,828,856,055 $57,516,028 $1,828,856,055827825 IOWA STUDENT LOAN LIQUIDITY CORP ................................................................. $21,291,088 $412,178,900 $31,938,669 $1,196,943,101 $53,229,757 $1,609,122,001826688 KENTUCKY HIGHER ED STUDENT LOAN COR ........................................................ $40,106,950 $699,065,806 $11,571,384 $624,357,973 $51,678,334 $1,323,423,779833405 US BANK ELT ED LOANS INC ................................................................................ $7,450,821 $133,316,799 $39,479,346 $1,891,047,059 $46,930,167 $2,024,363,858807037 COLLEGE FOUNDATION INC ................................................................................... $193,126 $5,484,040 $45,629,583 $1,854,427,408 $45,822,708 $1,859,911,448833922 BONY ELT GOAL FINANCIAL LLC ........................................................................... $0 $45,576,486 $1,399,247,664 $45,576,486 $1,399,247,664830075 VSAC EDUCATION LOAN FINANCE PROGRAM ........................................................ $28,034,326 $530,904,225 $17,352,344 $636,445,046 $45,386,669 $1,167,349,271824756 CITIBANK (NEW YORK STATE) SLC ........................................................................ $0 $38,705,014 $1,018,358,417 $38,705,014 $1,018,358,417834059 BONY ELT COLLEGIATE FUND SVCS RI/CF ............................................................ $0 $38,620,917 $1,296,946,139 $38,620,917 $1,296,946,139825585 MICHIGAN HIGHER EDUCATION STUD LOAN ......................................................... $17,561,882 $412,663,043 $17,217,962 $1,123,591,445 $34,779,844 $1,536,254,488

100

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

828863 MISSOURI HIGHER EDUCATION LOAN AUTH .......................................................... $8,878,031 $153,817,735 $25,076,192 $1,860,485,566 $33,954,223 $2,014,303,301813830 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $33,565,354 $872,043,214 $33,565,354 $872,043,214830628 IDAPP .................................................................................................................... $745,832 $28,202,834 $32,560,798 $1,582,646,623 $33,306,630 $1,610,849,457826351 ILL DESIGNATED ACCOUNT PURCHASE PR ........................................................... $2,611,876 $52,661,912 $29,601,493 $995,981,796 $32,213,370 $1,048,643,708834097 WELLS FARGO ELT NTHEA INC .............................................................................. $11,976,579 $251,471,061 $18,902,055 $828,644,527 $30,878,634 $1,080,115,588828868 TRUSTMARK BANK ELT MHEAC ............................................................................. $5,808,316 $103,988,173 $24,225,751 $805,120,733 $30,034,067 $909,108,906833872 BANK OF NY ELT GOAL FINANCIAL LLC ................................................................ $0 $29,978,848 $1,076,047,420 $29,978,848 $1,076,047,420833078 US BANK ELT BSFC ............................................................................................... $0 $29,569,743 $1,029,806,602 $29,569,743 $1,029,806,602833220 JPMORGAN CHASE ELT KEYCORP ......................................................................... $0 $29,385,932 $1,603,409,143 $29,385,932 $1,603,409,143828476 UTAH STATE BOARD OF REGENTS ........................................................................ $9,613,279 $163,242,746 $18,589,477 $655,079,675 $28,202,756 $818,322,421832095 WELLS FARGO ELT PANHANDLE PLAINS ................................................................ $18,360,030 $348,849,840 $8,446,118 $455,385,330 $26,806,148 $804,235,170899980 INDIANA SECONDARY MARKET .............................................................................. $6,653,206 $140,764,497 $19,868,346 $732,662,069 $26,521,551 $873,426,566800061 SUNTRUST BANK ................................................................................................... $0 $26,083,968 $165,814,278 $26,083,968 $165,814,278833193 S C STUDENT LOAN-TAXABLE ............................................................................... $0 $26,010,755 $1,194,647,372 $26,010,755 $1,194,647,372834092 M&T BANK ELT PHEAA LOAN TRUST I .................................................................. ($21) $0 $25,626,796 $802,776,693 $25,626,775 $802,776,693834226 BANK OF NY ELT GOAL CAP FUND TRUST ............................................................ $0 $25,204,317 $837,741,813 $25,204,317 $837,741,813827866 COLLEGEINVEST .................................................................................................... $11,738,633 $253,422,510 $13,239,892 $743,823,698 $24,978,525 $997,246,208831008 STUDENT LOAN FUNDING US BANK ELT ............................................................... $3,604,935 $72,552,371 $19,822,008 $703,116,150 $23,426,943 $775,668,521829691 ZIONS BANK ELT SLFA-WA INC ............................................................................. $2,087,202 $38,565,684 $20,973,552 $704,782,171 $23,060,754 $743,347,855832994 NEW HAMPSHIRE HIGHER ED LOAN CORP ........................................................... $0 $22,482,534 $886,569,918 $22,482,534 $886,569,918811304 SUNTRUST BANK ................................................................................................... $0 $22,239,514 $309,498,641 $22,239,514 $309,498,641802218 WILMINGTON TRUST ELT SLMA ED ....................................................................... $0 $21,059,715 $1,778,156,962 $21,059,715 $1,778,156,962811078 ZIONS BANK ELT SLM RESOURCES LLC ............................................................... $0 $20,755,606 $422,507,350 $20,755,606 $422,507,350809921 PNC EDUCATION LOAN CTR .................................................................................. $0 $20,486,663 $783,584,233 $20,486,663 $783,584,233834202 BANK OF NY ELT CIT ED LOAN TRUST ................................................................. $0 $20,187,612 $829,269,302 $20,187,612 $829,269,302830344 WELLS FARGO ELT MHESAC .................................................................................. $3,251,656 $66,350,212 $16,873,999 $633,139,162 $20,125,656 $699,489,374825659 OKLAHOMA STUDENT LOAN AUTHORITY ................................................................ $1,253,033 $29,069,493 $17,917,474 $781,134,433 $19,170,507 $810,203,926822717 NEW MEXICO EDUC ASST FOUNDATION ................................................................ $13,855,233 $259,928,343 $4,815,728 $245,062,012 $18,670,962 $504,990,355832775 JP MORGANCHASE ELT USA GROUP SMS ............................................................. $0 $17,973,952 $1,175,213,494 $17,973,952 $1,175,213,494832919 BANK OF NY ELT ALL STUDENT LOAN COR .......................................................... $3,036,588 $53,246,222 $14,892,044 $535,045,597 $17,928,633 $588,291,819829076 NELLIE MAE JPMORGAN CHASE ELT ..................................................................... $0 $16,385,510 $1,083,851,451 $16,385,510 $1,083,851,451824421 BOA STUDENT BANKING/CA9-169-04-01 .............................................................. $0 $16,169,392 $841,912,619 $16,169,392 $841,912,619800097 REGIONS BANK ...................................................................................................... $0 $16,076,023 $793,864,927 $16,076,023 $793,864,927

101

834170 BANK OF NY ELT EDSOUTH ................................................................................... $175,307 $3,383,077 $15,586,708 $685,230,403 $15,762,014 $688,613,480833960 DEUTSCHE BANK ELT ACCESS GROUP INC .......................................................... $0 $15,525,146 $394,691,369 $15,525,146 $394,691,369899989 SLM ECFC ............................................................................................................. $0 $15,220,474 $1,004,571,050 $15,220,474 $1,004,571,050820177 JP MORGAN CHASE BANK NA ............................................................................... $0 $14,864,455 $554,265,414 $14,864,455 $554,265,414834159 ZIONS FNB ELT GCO ED LN FUND & AFF ............................................................. $0 $14,475,354 $122,650,717 $14,475,354 $122,650,717833211 BANK OF NY ELT GTHEA ....................................................................................... $7,707,205 $178,406,284 $6,661,187 $393,933,234 $14,368,392 $572,339,518832260 WELLS FARGO ELT MHESAC .................................................................................. $0 $14,205,021 $502,213,947 $14,205,021 $502,213,947834278 BANK OF NY ELT ED LOAN TRUST IV LLC ............................................................ $0 $14,000,127 $842,491,931 $14,000,127 $842,491,931834076 DEUTSCHE BANK ELT ACADEMIC LOAN GRO ........................................................ $0 $12,386,519 $790,373,139 $12,386,519 $790,373,139824690 JPMORGAN CHASE ELT SMS ................................................................................. $0 $12,068,798 $1,361,648,985 $12,068,798 $1,361,648,985826717 UTAH STATE BOARD OF REGENTS ........................................................................ $4,706,039 $103,914,544 $7,320,399 $390,715,417 $12,026,437 $494,629,961834250 DEUTSCHE BANK ELT SUNTRUST .......................................................................... $0 $12,001,382 $546,631,041 $12,001,382 $546,631,041831067 CITIBANK (NEW YORK STATE) SLC ........................................................................ $0 $11,971,695 $398,288,582 $11,971,695 $398,288,582831245 SOUTHWEST STUDENT SRV TRUST WFB ELT ........................................................ $7,400,183 $141,012,628 $4,339,276 $245,487,022 $11,739,458 $386,499,650834119 BANK OF NY ELT GOAL FINANCIAL LLC ................................................................ $0 $11,361,449 $3,243,823 $11,361,449 $3,243,823833670 WELLS FARGO BANK ELT NHELP III ...................................................................... $0 $11,080,984 $470,859,927 $11,080,984 $470,859,927834145 BANK OF NY ELT US EDUCATION LOAN TR .......................................................... $0 $10,959,501 $270,232,708 $10,959,501 $270,232,708829739 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $10,583,735 $524,546,198 $10,583,735 $524,546,198811303 SUNTRUST BANK ................................................................................................... $0 $10,484,724 $177,526,126 $10,484,724 $177,526,126810691 SUNTRUST BANK NA ............................................................................................. $0 $10,430,396 $436,175,451 $10,430,396 $436,175,451834086 WELLS FARGO ELT BRAZOS HEA .......................................................................... $3,096,241 $53,575,742 $7,120,401 $488,775,847 $10,216,642 $542,351,589833617 US BANK ELT EFSI ................................................................................................ ($14) $10,180,699 $352,142,260 $10,180,685 $352,142,260816386 BANK OF NORTH DAKOTA ...................................................................................... $0 $10,103,644 $376,079,579 $10,103,644 $376,079,579805149 BANK OF NY ELT TTEE LELA ................................................................................. $5,087,971 $72,942,850 $4,856,997 $255,393,418 $9,944,968 $328,336,268806746 BANK OF AMERICA N A ......................................................................................... $0 $9,873,261 $435,605,399 $9,873,261 $435,605,399829769 UTAH STATE BOARD OF REGENTS ........................................................................ $7,039,426 $131,567,279 $2,660,773 $124,595,069 $9,700,199 $256,162,348833264 WELLS FARGO ELT STHEA INC .............................................................................. $3,608,890 $83,814,523 $6,038,460 $322,017,126 $9,647,350 $405,831,649828577 RHODE ISLAND STUDENT LOAN AUTHORITY ......................................................... $4,217,950 $97,681,990 $5,401,630 $239,294,653 $9,619,580 $336,976,643828614 CSLF/SUSIE MAE ................................................................................................... $0 $9,508,801 $419,755,866 $9,508,801 $419,755,866830351 SC STUDENT LOAN CORP (SL05) .......................................................................... $1,604,563 $33,220,877 $7,493,857 $234,577,224 $9,098,419 $267,798,101819873 SUNTRUST BANK ................................................................................................... $0 $8,788,364 $526,278,762 $8,788,364 $526,278,762833838 US BANK ELT EDINVEST CO .................................................................................. $0 $8,243,928 $240,724,570 $8,243,928 $240,724,570833016 SC STUDENT LOAN-93 RES (SL03) ....................................................................... $6,545,140 $47,205,330 $1,377,356 $586,640 $7,922,496 $47,791,970830492 ASSOCIATED BANK NA .......................................................................................... $0 $7,862,009 $346,870,502 $7,862,009 $346,870,502822904 CITIBANK ELT STUDENT LOAN CORP .................................................................... $0 $7,843,123 $554,769,727 $7,843,123 $554,769,727811925 JPMORGAN CHASE BANK NA ................................................................................. $0 $7,613,852 $89,508,303 $7,613,852 $89,508,303821654 US BANK NA .......................................................................................................... $0 $7,577,909 $131,357,144 $7,577,909 $131,357,144833659 US BANK ELT THEA INC ........................................................................................ $0 $7,561,049 $201,875,314 $7,561,049 $201,875,314807807 JP MORGAN CHASE BANK ..................................................................................... $0 $7,384,789 $44,764,395 $7,384,789 $44,764,395899995 SLM ECFC ............................................................................................................. $0 $7,127,303 $320,848,659 $7,127,303 $320,848,659

102

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833770 US BANK ELT USEFC ............................................................................................. $0 $6,938,059 $234,529,690 $6,938,059 $234,529,690832733 BANK OF AMERICA NA .......................................................................................... $0 $6,833,225 $336,637,005 $6,833,225 $336,637,005827283 WYOMING STUDENT LOAN CORPORATION ............................................................. $2,542,007 $61,487,189 $4,223,420 $226,727,729 $6,765,427 $288,214,918818334 BANK OF AMERICA N A ......................................................................................... $0 $6,683,652 $285,051,406 $6,683,652 $285,051,406832934 BANK OF NY ELT GTHEA (93AB) ........................................................................... $5,892,372 $121,595,074 $777,078 $39,647,285 $6,669,450 $161,242,359833880 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $6,527,206 $252,951,986 $6,527,206 $252,951,986827273 PNC EDUCATION LOAN CTR C/O G REITER .......................................................... $0 $6,436,913 $452,051 $6,436,913 $452,051830631 STUDENT LOAN FUNDING US BANK ELT ............................................................... $6,089,827 $114,871,881 $261,454 $22,160,434 $6,351,281 $137,032,315834081 BANK OF NY ELT US EDUCATION LOAN TR .......................................................... $0 $6,335,464 $195,316,428 $6,335,464 $195,316,428813760 KEY BANK NA ........................................................................................................ $0 $6,323,068 $103,907,975 $6,323,068 $103,907,975833457 ZIONS FNB ELT NELNET I ..................................................................................... $0 $5,945,741 $589,066,763 $5,945,741 $589,066,763831846 BANK OF AMERICA N A ......................................................................................... $0 $5,776,305 $217,143,227 $5,776,305 $217,143,227807743 CITIBANK ELT STUDENT LOAN CORP .................................................................... $0 $5,720,879 $1,427,187 $5,720,879 $1,427,187808047 HSBC BANK USA NA ............................................................................................. $0 $5,720,657 $298,675,840 $5,720,657 $298,675,840831821 WELLS FARGO ELT PANHANDLE PLAINS ................................................................ $0 $5,603,161 $173,403,679 $5,603,161 $173,403,679815502 NAVY FEDERAL CREDIT UNION ............................................................................. $0 $5,502,235 $239,737,649 $5,502,235 $239,737,649833067 AMS EDUCATION LOAN TRUST .............................................................................. $0 $5,401,041 $405,536,647 $5,401,041 $405,536,647834064 WELLS FARGO ELT STUD. ASST. MT ..................................................................... $0 $5,357,733 $134,336 $5,357,733 $134,336833285 US BANK ELT PSFC ............................................................................................... ($43) $5,289,227 $58,005,609 $5,289,184 $58,005,609826764 INDUSTRIAL COMMISSION ..................................................................................... $4,737,974 $60,863,311 $485,663 $34,717,169 $5,223,638 $95,580,480801871 BOA STDNT BKNG CA9-169-04-01 ....................................................................... $0 $5,204,274 $124,383,392 $5,204,274 $124,383,392830308 NELLIE MAE JPMORGAN CHASE ELT ..................................................................... $0 $5,165,708 $218,183,144 $5,165,708 $218,183,144833890 FIFTH THIRD ELT STUDENT LOAN XPRESS ............................................................ $0 $5,039,685 $308,601,940 $5,039,685 $308,601,940808780 FIFTH THIRD ELT SLFR MD 10907A ...................................................................... $709,541 $11,900,531 $4,159,863 $221,009,292 $4,869,403 $232,909,823833307 S C STUDENT LOAN TAXABLE-LLR ........................................................................ $0 $4,729,031 $318,724,549 $4,729,031 $318,724,549831453 US BANK ELT EDAMERICA .................................................................................... ($769) $4,597,629 $209,391,740 $4,596,861 $209,391,740831455 STUDENT LOAN FUNDING US BANK ELT ............................................................... $0 $4,578,795 $315,259,912 $4,578,795 $315,259,912831300 MELMAC LLC ZIONS BANK ELT ............................................................................. $325,853 $18,014,051 $4,239,761 $225,659,716 $4,565,614 $243,673,767833079 AMS EDUCATION LOAN TRUST .............................................................................. $0 $4,559,506 $272,276,821 $4,559,506 $272,276,821813979 COMMERCE BANK N A .......................................................................................... $0 $4,552,243 $170,634,968 $4,552,243 $170,634,968810509 WELLS FARGO EDUCATIONAL FIN SVCS ................................................................ $0 $4,355,406 $165,660,440 $4,355,406 $165,660,440831495 BANK OF AMERICA ................................................................................................ $0 $3,897,795 $220,149,785 $3,897,795 $220,149,785821666 WELLS FARGO ELT FOR SLAAA ............................................................................. $2,567,218 $45,034,222 $1,042,270 $77,606,303 $3,609,488 $122,640,525

103

833347 BANK OF NY ELT PANHANDLE PLAINS HEA .......................................................... $1,321,448 $26,243,226 $2,090,023 $105,610,457 $3,411,471 $131,853,683830310 BNY ELT COLLEGE BOARD .................................................................................... $0 $3,337,847 $1,845,448 $3,337,847 $1,845,448829626 STUDENT LOAN FUNDING US BANK ELT ............................................................... $0 $3,284,350 $228,192,651 $3,284,350 $228,192,651833228 US BANK ELT BEA INC .......................................................................................... $0 $3,228,731 $5,306,245 $3,228,731 $5,306,245833207 STUDENT LOAN FUNDING US BANK ELT ............................................................... $0 $3,154,060 $196,950,834 $3,154,060 $196,950,834807745 CITIZENS BANK NA ................................................................................................ $0 $3,118,154 $128,759,891 $3,118,154 $128,759,891824515 UNIVERSITY OF PENNSYLVANIA ............................................................................. $0 $3,098,468 $243,243 $3,098,468 $243,243829030 CAPITAL ONE NA ................................................................................................... $0 $3,021,454 $176,911,479 $3,021,454 $176,911,479833495 ZIONS ELT EMT CORP ........................................................................................... ($109) $3,015,239 $89,980,020 $3,015,130 $89,980,020818611 UNIVERSITY OF WISCONSIN CU ............................................................................ $0 $2,905,647 $92,497,824 $2,905,647 $92,497,824833471 AMS EDUCATION LOAN TRUST JPMORGAN E ........................................................ $0 $2,883,360 $97,914,831 $2,883,360 $97,914,831834124 DEUTSCHE BANK ELT K2FINANCIAL LLC ............................................................... $0 $2,867,731 $118,801,666 $2,867,731 $118,801,666832547 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $2,845,505 $271,569,898 $2,845,505 $271,569,898834218 ARIZONA HIGHER ED LOAN AUTHORITY ................................................................ $0 $2,783,783 $72,745,288 $2,783,783 $72,745,288834308 DEUTSCHE BANK ELT NEXTSTUDENT ELF/M ......................................................... $0 $2,766,238 $168,749,813 $2,766,238 $168,749,813814548 US BANK NA .......................................................................................................... $0 $2,753,069 $117,403,693 $2,753,069 $117,403,693834051 DEUTSCHE BANK ELT NEXTSTUDENT/NS IN .......................................................... $0 $2,730,608 $417,175 $2,730,608 $417,175830694 US BANK NA .......................................................................................................... $0 $2,698,011 $156,208,209 $2,698,011 $156,208,209833074 JPMORGAN CHASE ELT WELLS FARGO TRUS ........................................................ $0 $2,692,677 $169,891,428 $2,692,677 $169,891,428825600 NEW JERSEY HIGHER EDUCA ASST AUTH ............................................................. ($1,507) $0 $2,679,446 $123,716,298 $2,677,939 $123,716,298834127 US BANK ELT EDUCATIONAL FUNDING SVC .......................................................... $0 $2,672,481 $122,924,298 $2,672,481 $122,924,298808959 KEY BANK NA ........................................................................................................ $0 $2,664,862 $14,840,181 $2,664,862 $14,840,181820192 UNION BANK CA ELT CHELA FUND I (TEF) ........................................................... $0 $2,611,956 $52,853 $2,611,956 $52,853833921 MASSACHUSETTS ED FINANCING .......................................................................... $0 $2,538,132 $116,385,653 $2,538,132 $116,385,653826966 ALASKA (ACPE) ...................................................................................................... $2,460,035 $50,258,274 $9,697 $1,554,330 $2,469,731 $51,812,604824135 SUNTRUST BANK ................................................................................................... $0 $2,439,223 $14,461,226 $2,439,223 $14,461,226832347 BANK OF NY ELT GREATER TX FOUND ................................................................. $0 $2,383,656 $183,551,524 $2,383,656 $183,551,524833017 S C STUDENT LLR ................................................................................................. $1,881,549 $17,466,740 $497,673 $263,528 $2,379,222 $17,730,268833741 WELLS FARGO ELT CTSLC LLC .............................................................................. $1,375,356 $29,801,033 $1,002,634 $75,770,804 $2,377,990 $105,571,837829640 SLM ECFC ............................................................................................................. $0 $2,373,440 $157,668,238 $2,373,440 $157,668,238888885 SLM ECFC ............................................................................................................. $0 $2,351,575 $180,245,373 $2,351,575 $180,245,373826509 ARKANSAS STUDENT LOAN AUTHORITY ................................................................. ($5,968,655) $74,272,483 $8,284,678 $299,373,748 $2,316,023 $373,646,231833032 NOVA SOUTHEASTERN UNIVERSITY ....................................................................... $0 $2,221,131 $16,614,420 $2,221,131 $16,614,420828154 CITIBANK NA ......................................................................................................... $0 $2,195,298 $216,035,775 $2,195,298 $216,035,775803688 FIFTH THIRD BANK OF CENTRAL INDIANA ............................................................. $0 $2,167,514 $123,720,822 $2,167,514 $123,720,822830868 UNION BANK & TRUST COMPANY ASAP ................................................................ $0 $2,158,514 $18,176,484 $2,158,514 $18,176,484809081 STILLWATER NATIONAL BANK & TRUST CO .......................................................... $0 $2,121,695 $74,082,909 $2,121,695 $74,082,909827269 US BANK NA .......................................................................................................... $0 $2,118,347 $108,401,453 $2,118,347 $108,401,453833702 ZIONS ELT NELNET II ............................................................................................ $0 $2,096,280 $357,205,490 $2,096,280 $357,205,490820164 UNION BK CA ELT CHELA FUND I (TEFFC) ........................................................... $1,392,916 $3,168 $582,322 $331,193 $1,975,238 $334,361

104

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

816086 US BANK NA .......................................................................................................... $0 $1,962,883 $111,563,725 $1,962,883 $111,563,725834131 BANK OF NY ELT GOLDMAN SACHS ...................................................................... $0 $1,957,501 $189,988 $1,957,501 $189,988830731 NOTRE DAME CREDIT UNION ................................................................................ $0 $1,950,330 $71,465,903 $1,950,330 $71,465,903833881 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $1,918,082 $88,997,882 $1,918,082 $88,997,882810513 WELLS FARGO EDUCATIONAL FIN SVCS ................................................................ $0 $1,910,139 $6,038,015 $1,910,139 $6,038,015833691 NELLIE MAE JPMORGAN CHASE ELT ..................................................................... $1,538,672 $26,697,813 $359,871 $32,469,911 $1,898,543 $59,167,724808877 NATIONAL CITY BANK OF OHIO ............................................................................. $0 $1,877,327 $12,703,518 $1,877,327 $12,703,518810388 US BANK NA .......................................................................................................... $0 $1,866,176 $84,463,646 $1,866,176 $84,463,646809582 PNC EDUCATION LOAN CTR .................................................................................. $0 $1,856,504 $2,860,121 $1,856,504 $2,860,121830604 HSBC BANK USA ................................................................................................... $0 $1,828,112 $43,115,212 $1,828,112 $43,115,212813298 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $1,812,613 $102,513,578 $1,812,613 $102,513,578808037 JP MORGANCHASE BANK ....................................................................................... $0 $1,805,888 $2,844,847 $1,805,888 $2,844,847820682 SAN ANTONIO FCU ................................................................................................ $0 $1,801,427 $129,612,699 $1,801,427 $129,612,699814321 JPMORGAN CHASE BANK NA ................................................................................. $0 $1,793,414 $9,200,269 $1,793,414 $9,200,269832339 BANK OF NY ELT GTHEA (92AB) ........................................................................... $1,785,080 $36,960,240 $1,990 $780,758 $1,787,070 $37,740,998817729 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $1,763,691 $70,465,282 $1,763,691 $70,465,282831692 STUDENT LOAN FUNDING US BANK ELT ............................................................... $1,391,900 $7,961,956 $352,334 $31,423,824 $1,744,234 $39,385,780813894 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $1,725,450 $81,363,754 $1,725,450 $81,363,754822583 DOLLAR BANK ....................................................................................................... $0 $1,691,616 $12,643,205 $1,691,616 $12,643,205832776 JPMORGAN CHASE ELT SMS CORP—HI ............................................................... $687,419 $13,055,632 $990,276 $54,377,983 $1,677,695 $67,433,615833128 SC STUDENT LOAN TAXABLE ................................................................................. $0 $1,665,457 $8,916 $1,665,457 $8,916833864 US BANK ELT ACADEMIC FIN CORP ...................................................................... $0 $1,592,920 $108,775,186 $1,592,920 $108,775,186819414 BENEFICIAL SAVINGS BANK .................................................................................. $0 $1,590,920 $71,898,895 $1,590,920 $71,898,895833570 US BANK ELT ACCESS GROUP .............................................................................. $0 $1,567,997 $59,191,082 $1,567,997 $59,191,082833752 BANK OF NY ELT ALL STUDENT LOAN COR .......................................................... $684,281 $17,952,418 $863,612 $59,908,581 $1,547,893 $77,860,999821359 FIRST NATIONAL BANK OF BRYAN ........................................................................ $0 $1,544,988 $39,351,990 $1,544,988 $39,351,990810612 REGIONS BANK ...................................................................................................... $0 $1,501,607 $17,431,726 $1,501,607 $17,431,726805317 BANK OF AMERICA ................................................................................................ $0 $1,498,939 $7,622,306 $1,498,939 $7,622,306811698 US BANK NA .......................................................................................................... $0 $1,485,878 $74,835,812 $1,485,878 $74,835,812831056 WELLS FARGO ELT PANHANDLE PLAINS SL .......................................................... $0 $1,484,071 $89,084,720 $1,484,071 $89,084,720822573 GEORGIA STUDENT FINANCE AUTHORITY .............................................................. $0 $1,472,832 $69,263,687 $1,472,832 $69,263,687823011 ANCHORBANK F S B ............................................................................................. $0 $1,429,720 $93,734,160 $1,429,720 $93,734,160821728 TCF NATIONAL BANK ............................................................................................. $0 $1,420,971 $3,496,978 $1,420,971 $3,496,978

105

811323 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $1,397,569 $6,603,030 $1,397,569 $6,603,030833356 YORK BK CNS ELT 97I EDUCAID/WACHOVI ........................................................... $0 $1,373,195 $96,980,273 $1,373,195 $96,980,273820564 SUNTRUST BANK ................................................................................................... $0 $1,356,653 $42,507,133 $1,356,653 $42,507,133829988 NELLIE MAE JPMORGAN CHASE ELT ..................................................................... $0 $1,325,244 $63,702,208 $1,325,244 $63,702,208834082 WELLS FARGO NA ELT EDUCAP INC ..................................................................... $0 $1,319,689 $84,839,990 $1,319,689 $84,839,990801890 US BANK NA .......................................................................................................... $0 $1,315,323 $71,814,047 $1,315,323 $71,814,047834105 FINANCE AUTHORITY OF MAINE ............................................................................ $0 $1,303,124 $84,797,360 $1,303,124 $84,797,360815745 SIMMONS FIRST NATIONAL BANK .......................................................................... $0 $1,283,663 $63,487,446 $1,283,663 $63,487,446828141 NORTHWEST SAVINGS BANK ................................................................................. $0 $1,266,337 $66,448 $1,266,337 $66,448804267 US BANK NA .......................................................................................................... $0 $1,241,231 $46,712,572 $1,241,231 $46,712,572803909 UNION BANK & TRUST .......................................................................................... $0 $1,213,916 $65,533,889 $1,213,916 $65,533,889833668 SC STUDENT LOAN CORP (LL05) .......................................................................... $124,154 $2,057,939 $1,087,813 $61,281,871 $1,211,966 $63,339,810808036 M & T BANK EDUCATIONAL LENDING ................................................................... $0 $1,202,253 $288,568 $1,202,253 $288,568805204 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $1,180,637 $45,536,303 $1,180,637 $45,536,303833456 ZIONS FNB ELT NHELP II INC ............................................................................... $0 $1,174,786 $39,685,480 $1,174,786 $39,685,480824206 JPMORGAN CHASE BANK NA ................................................................................. $0 $1,164,667 $7,186,088 $1,164,667 $7,186,088824650 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $1,146,631 $62,854,858 $1,146,631 $62,854,858834011 FIFTH THIRD ELT STUDENT LOAN XPRESS ............................................................ $0 $1,126,717 $76,841,810 $1,126,717 $76,841,810831416 ANCHORBANK FSB ................................................................................................ $0 $1,108,530 $95,895,899 $1,108,530 $95,895,899834172 US BANK ELT GRADUATE LEVERAGE .................................................................... $0 $1,105,957 $16,763,617 $1,105,957 $16,763,617828707 SOVEREIGN BANK .................................................................................................. $0 $1,104,340 $45,894,529 $1,104,340 $45,894,529807674 BANK OF AMERICA N A ......................................................................................... $0 $1,102,626 $47,605,912 $1,102,626 $47,605,912833883 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $1,052,872 $21,971,422 $1,052,872 $21,971,422833816 US BANK ELT OHIO CENTRIC ................................................................................ $0 $1,047,102 $36,488,233 $1,047,102 $36,488,233810148 CLS—NATIONAL CITY BANK PITTSBURG .............................................................. $0 $1,009,846 $5,050,766 $1,009,846 $5,050,766806773 BOONE COUNTY NATIONAL BANK .......................................................................... $0 $1,009,678 $19,921,177 $1,009,678 $19,921,177826079 BANK OF AMERICA N A ......................................................................................... $0 $996,456 $40,344,830 $996,456 $40,344,830834158 BANK OF NY ELT COLLEGE SOLUTIONS NE .......................................................... $0 $991,247 $659,745 $991,247 $659,745829503 PA HIGHER ED ASST AGENCY ............................................................................... $0 $962,633 $21,228,386 $962,633 $21,228,386804609 US BANK NA .......................................................................................................... $0 $960,725 $47,155,192 $960,725 $47,155,192808258 US BANK NA .......................................................................................................... $0 $955,083 $54,642,469 $955,083 $54,642,469833732 US BANK ELT AMERIFUND .................................................................................... $0 $934,110 $3,145,736 $934,110 $3,145,736813385 MEMBERS 1ST FEDERAL CREDIT UNION .............................................................. $0 $926,491 $34,267,174 $926,491 $34,267,174824514 UNIVERSITY OF CHICAGO ...................................................................................... $0 $892,757 $25,838,212 $892,757 $25,838,212821920 FIRSTRUST SAVINGS BANK .................................................................................... ($111) $889,420 $32,254,627 $889,310 $32,254,627831221 SC STUDENT LOAN CORPORATION ........................................................................ $0 $856,898 $0 $856,898 $0808626 JPMORGAN CHASE BANK NA ................................................................................. $0 $856,378 $85,362 $856,378 $85,362834093 WEBSTER UNIVERSITY ........................................................................................... $0 $850,828 $2,029,694 $850,828 $2,029,694808140 CHARTER ONE BANK NA ....................................................................................... $0 $835,765 $37,148,049 $835,765 $37,148,049834246 US BANK ELT KNOWLEDGEFUNDING OHIO ............................................................ $226 $834,584 $58,592,235 $834,809 $58,592,235

106

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

810883 FROST NATIONAL BANK ......................................................................................... $0 $828,510 $19,098,314 $828,510 $19,098,314817455 ZIONS BANK .......................................................................................................... $0 $823,376 $36,693,546 $823,376 $36,693,546811949 M&I MARSHALL & ILSLEY BANK ........................................................................... $0 $816,884 $4,563,367 $816,884 $4,563,367819590 SECURITY SERVICE FCU ....................................................................................... $0 $813,973 $44,148,006 $813,973 $44,148,006822373 AMERICA FIRST CREDIT UNION ............................................................................. $0 $804,989 $36,175,943 $804,989 $36,175,943833820 ZIONS ELT EDUCATION SOLUTIONS INC ................................................................ $0 $800,735 $3,036,199 $800,735 $3,036,199834132 HANCOCK BANK ELT MHEAC ................................................................................. $0 $798,930 $37,662,768 $798,930 $37,662,768805178 BANK OF NY ELT TTEE LELA ................................................................................. $600,580 $23,137,957 $196,885 $13,444,894 $797,465 $36,582,851808543 UNION BANK & TRUST .......................................................................................... $0 $792,752 $5,424,546 $792,752 $5,424,546806361 BREMER BANK NA ................................................................................................ $0 $786,220 $36,115,943 $786,220 $36,115,943829077 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................................ $0 $772,177 $48,595,148 $772,177 $48,595,148804435 COMMERCE BANK AND TRUST .............................................................................. $0 $759,942 $43,789,998 $759,942 $43,789,998819958 FARMERS SAVINGS BANK ...................................................................................... $0 $759,369 $15,252,377 $759,369 $15,252,377823584 BANK OF LAKE MILLS ............................................................................................ $0 $731,683 $3,600,131 $731,683 $3,600,131833789 ZIONS ELT STUDENT LN FIN ASSOC INC .............................................................. $0 $728,851 $43,831,618 $728,851 $43,831,618812265 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $726,467 $31,010,542 $726,467 $31,010,542810457 FNB SIOUX FALLS .................................................................................................. $0 $720,050 $9,062 $720,050 $9,062833214 STUDENT LOAN FUNDING US BANK ELT ............................................................... $0 $718,588 $39,819,685 $718,588 $39,819,685820043 WASHINGTON MUTUAL BANK FA ........................................................................... $0 $716,020 $415,735 $716,020 $415,735802445 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $714,772 $11,365,416 $714,772 $11,365,416834006 KEY BANK NA ELT INDIANA SECONDARY M .......................................................... $0 $688,571 $2,633,540 $688,571 $2,633,540827954 GUARANTY BANK ................................................................................................... $0 $676,733 $4,724,332 $676,733 $4,724,332812089 TEXAS HIGHER EDUCATION COORD BOARD .......................................................... $424,017 $16,891,628 $251,411 $16,112,294 $675,428 $33,003,922833331 USC CREDIT UNION ............................................................................................... $0 $673,880 $29,306,292 $673,880 $29,306,292802176 BANK OF AMERICA ................................................................................................ $0 $659,382 $1,890,601 $659,382 $1,890,601833443 COMPASS BANK .................................................................................................... $0 $652,746 $34,424,569 $652,746 $34,424,569834004 FIRST NATIONAL BANK .......................................................................................... $0 $636,552 $4,542,076 $636,552 $4,542,076833908 FIFTH THIRD ELT STUDENT LOAN XPRESS ............................................................ $0 $623,214 $5,703,629 $623,214 $5,703,629829771 TCF NATIONAL BANK ............................................................................................. $0 $620,503 $141,566 $620,503 $141,566833487 BANK OF NY ELT LOANSTAR ................................................................................. $0 $0 $619,173 $24,257,024 $619,173 $24,257,024810240 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $612,565 $30,834,135 $612,565 $30,834,135820163 UNION BANK CA ELT CHELA FUND II (TE) ............................................................ $12,940 $0 $594,319 $439,200 $607,259 $439,200828893 PENNSYLVANIA STATE EMPLOYEES CREDIT .......................................................... $0 $605,136 $25,980,472 $605,136 $25,980,472

107

818260 FIRST HAWAIIAN BANK .......................................................................................... $0 $604,450 $30,109,871 $604,450 $30,109,871824246 CONNECTICUT STUDENT LOAN FOUNDATION ........................................................ $0 $604,034 $22,645,855 $604,034 $22,645,855816376 TINKER FEDERAL CREDIT UNION .......................................................................... $0 $600,361 $34,106,833 $600,361 $34,106,833821614 UNION BANK CA ELT CHELA FUND I (TEF) ........................................................... $249,317 $342,927 $107,157 $592,244 $107,157834040 WELLS FARGO ELT OPUS FINANCIAL INC .............................................................. $0 $588,256 $989,146 $588,256 $989,146827427 MISSION FEDERAL CREDIT UNION ........................................................................ $0 $579,561 $21,973,311 $579,561 $21,973,311834204 FIFTH THIRD BANK ELT FINANSURE STUD ............................................................ $0 $573,416 $25,001,032 $573,416 $25,001,032830248 UTAH STATE BOARD OF REGENTS/STNF ............................................................... $572,615 $12,443,094 $0 $572,615 $12,443,094805156 JPMORGAN CHASE BANK NA ................................................................................. $0 $571,243 $3,142,300 $571,243 $3,142,300828957 PHILADELPHIA FEDERAL CREDIT UNION ............................................................... $0 $570,306 $23,769,305 $570,306 $23,769,305808190 TEACHERS FCU ..................................................................................................... $0 $570,091 $24,459,881 $570,091 $24,459,881808857 JPMORGAN CHASE BANK NA ................................................................................. $0 $560,748 $6,538,059 $560,748 $6,538,059831543 WASHINGTON MUTUAL BANK FA ........................................................................... $0 $558,840 $2,680,739 $558,840 $2,680,739833174 BANK OF NY ELT ALL STUDENT LOAN COR .......................................................... $23,262 $905,667 $535,552 $68,339,754 $558,814 $69,245,421828875 COLLEGEINVEST .................................................................................................... $53,595 $1,207,439 $500,090 $27,629,717 $553,684 $28,837,156810815 FIRST NATIONAL BANK .......................................................................................... $0 $549,131 $33,695,801 $549,131 $33,695,801833585 JPMORGANCHASE ELT AMS FINANCING ENT ......................................................... $0 $548,273 $27,978,860 $548,273 $27,978,860831428 MIDWESTERN UNIVERSITY ..................................................................................... $0 $546,465 $2,077,022 $546,465 $2,077,022811978 WELLS FARGO EDUCATIONAL FIN SVCS ................................................................ $0 $540,224 $32,240,818 $540,224 $32,240,818800635 BOA STUDENT BANKING/CA9-169-04-01 .............................................................. $0 $537,944 $24,001,213 $537,944 $24,001,213809063 BANK OF OKLAHOMA ............................................................................................. $0 $532,789 $7,749,693 $532,789 $7,749,693828148 UNIVERSITY FEDERAL CREDIT UNION ................................................................... ($29) $525,861 $521,259 $525,832 $521,259828078 COMPASS BANK .................................................................................................... $0 $523,061 $33,549,363 $523,061 $33,549,363806965 US BANK NA .......................................................................................................... $0 $520,642 $23,502,153 $520,642 $23,502,153805987 COMERICA BANK ................................................................................................... $0 $517,134 $333,522 $517,134 $333,522834101 US BANK ELT SCHOOL LOANS CORP .................................................................... $0 $516,005 $16,357,111 $516,005 $16,357,111809478 M &T BANK EDUCATIONAL LENDING ..................................................................... $0 $512,935 $1,046,750 $512,935 $1,046,750808622 FIRSTMERIT BANK N. A$0 ..................................................................................... $511,245 $24,050,927 $511,245 $24,050,927833751 BANK OF NY ELT ALL STUDENT LOAN COR .......................................................... $0 $503,284 $53,546,992 $503,284 $53,546,992830445 AGGIELAND CREDIT UNION ................................................................................... $0 $488,915 $21,004,285 $488,915 $21,004,285813721 TRUSTMARK NATIONAL BANK ................................................................................ $0 $487,581 $332,109 $487,581 $332,109823291 FIRSTMARK CREDIT UNION ................................................................................... $0 $486,518 $2,658 $486,518 $2,658807329 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $464,394 $16,836,386 $464,394 $16,836,386833364 JPMORGAN CHASE ELT PNC .................................................................................. $0 $462,979 $94,605,451 $462,979 $94,605,451819628 JPMORGAN CHASE BANK NA ................................................................................. $0 $461,600 $1,512,004 $461,600 $1,512,004804581 EMPRISE BANK ...................................................................................................... $0 $460,964 $24,387,568 $460,964 $24,387,568832384 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $456,230 $30,059,956 $456,230 $30,059,956831387 BANK OF MISSISSIPPI ELT MHEAC ........................................................................ $295,997 $12,569,426 $156,170 $26,424,912 $452,166 $38,994,338824289 LASALLE BANK ...................................................................................................... $0 $446,335 $1,290,887 $446,335 $1,290,887818464 SUNCOAST SCHOOLS FCU ..................................................................................... $0 $446,262 $18,732,294 $446,262 $18,732,294

108

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

801764 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $444,805 $60,114 $444,805 $60,114819480 EDUCATORS CREDIT UNION .................................................................................. $0 $443,003 $21,579,334 $443,003 $21,579,334833669 UNION BANK & TRUST ELT NAT’L ED LNS ............................................................ $0 $438,967 $1,393,835 $438,967 $1,393,835817546 MOUNTAIN AMERICA CREDIT UNION ..................................................................... $0 $438,437 $19,582,424 $438,437 $19,582,424806627 BANCORPSOUTH .................................................................................................... $0 $435,975 $74,787 $435,975 $74,787820238 BANC FIRST ........................................................................................................... $0 $435,412 $24,189,367 $435,412 $24,189,367831726 BANC FIRST ........................................................................................................... $0 $430,097 $13,149,428 $430,097 $13,149,428833930 UNION BANK ELT TROJAN FINANCIAL .................................................................... $0 $427,032 $13,410,499 $427,032 $13,410,499828352 JPMORGAN CHASE BANK NA ................................................................................. $0 $426,109 $1,225,455 $426,109 $1,225,455803143 ALBANY BANK AND TRUST CO .............................................................................. $0 $423,235 $757,113 $423,235 $757,113828062 DOW CHEMICAL EMPLOYEES’ CU ......................................................................... $0 $421,514 $17,296,566 $421,514 $17,296,566810753 COMMERCIAL BANK OF TEXAS N A ...................................................................... $0 $420,455 $19,879,101 $420,455 $19,879,101811353 SUNTRUST BANK ................................................................................................... $0 $410,913 $14,305,335 $410,913 $14,305,335810088 FULTON BANK ........................................................................................................ $0 $409,154 $18,652,555 $409,154 $18,652,555815678 US BANK NA .......................................................................................................... $0 $399,267 $17,115,477 $399,267 $17,115,477811025 KEY BANK NA ........................................................................................................ $0 $399,222 $10,008,059 $399,222 $10,008,059822135 TCF NATIONAL BANK ............................................................................................. $0 $398,077 $3,076,875 $398,077 $3,076,875823459 ROYAL CREDIT UNION ........................................................................................... $0 $388,700 $18,133,551 $388,700 $18,133,551811735 BANK OF AMERICA NA .......................................................................................... $0 $387,926 $12,167,032 $387,926 $12,167,032805243 BANK OF AMERICA ................................................................................................ $0 $382,275 $1,326,982 $382,275 $1,326,982824565 NORTHWESTERN UNIVERSITY ................................................................................ $0 $381,068 $11,748,595 $381,068 $11,748,595810166 UNIVEST NATIONAL BANK & TRUST ...................................................................... $0 $377,389 $14,102,649 $377,389 $14,102,649808865 JPMORGAN CHASE BANK NA ................................................................................. $0 $375,719 $8,484,936 $375,719 $8,484,936810710 AMARILLO NATIONAL BANK ................................................................................... $0 $374,534 $16,700,717 $374,534 $16,700,717826861 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $374,086 $18,316,088 $374,086 $18,316,088833130 SUMMIT CREDIT UNION ......................................................................................... $0 $364,823 $13,278,282 $364,823 $13,278,282819129 BANK MUTUAL ....................................................................................................... $0 $361,719 $16,317,046 $361,719 $16,317,046831459 WESTCONSIN CREDIT UNION ................................................................................. $0 $360,860 $14,853,331 $360,860 $14,853,331825509 JPMORGAN CHASE BANK N A ............................................................................... $0 $358,836 $1,185,978 $358,836 $1,185,978802828 NATIONAL CITY BANK MI-IL .................................................................................. $0 $357,631 $10,292,596 $357,631 $10,292,596829257 PURDUE EMPLOYEES F C U .................................................................................. $0 $351,402 $67,394 $351,402 $67,394824821 UNIVERSITY OF DENVER ....................................................................................... $0 $344,761 $0 $344,761 $0824945 MICHIGAN STATE UNIVERSITY ............................................................................... $0 $342,803 $0 $342,803 $0

109

833575 EDUCATION SERVICES FOUNDATION ..................................................................... $0 $338,511 $909,020 $338,511 $909,020800301 ARVEST BANK ........................................................................................................ $0 $338,231 $1,073,618 $338,231 $1,073,618811930 US BANK NA .......................................................................................................... $0 $338,023 $17,475,823 $338,023 $17,475,823809070 BANC FIRST ........................................................................................................... $0 $336,822 $13,580,878 $336,822 $13,580,878825163 GEORGE WASHINGTON UNIVERSITY ...................................................................... $0 $332,016 $282,293 $332,016 $282,293833416 FIRST NAT’L BANK—HUNTSVILLE ......................................................................... $0 $323,684 $17,347,345 $323,684 $17,347,345808238 FIRST NATIONAL BANK OF OMAHA ........................................................................ $0 $323,189 $12,845,187 $323,189 $12,845,187834058 DEUTSCHE BANK ELT MEDPREFERRED ................................................................. $0 $322,888 $14,573,121 $322,888 $14,573,121807878 FIRST NIAGARA FINANCIAL GROUP ....................................................................... $0 $322,697 $20,613,004 $322,697 $20,613,004829505 WASHINGTON MUTUAL BANK FA ........................................................................... $0 $322,420 $112,712 $322,420 $112,712834036 UNION BANK ELT WAYNE STATE U ....................................................................... $0 $316,460 $316,460 $0812967 PENN SECURITY BANK & TRUST CO ..................................................................... $0 $314,750 $12,919,099 $314,750 $12,919,099820605 KLEBERG FIRST NATIONAL BANK .......................................................................... $0 $313,277 $15,362,989 $313,277 $15,362,989807772 FIVE STAR BANK ................................................................................................... $0 $312,808 $63,634 $312,808 $63,634831785 STUDENT LOAN FUNDING US BANK ELT ............................................................... $296,983 $5,440,874 $10,675 $1,150,439 $307,659 $6,591,313824697 OXFORD BANK & TRUST ....................................................................................... $0 $307,115 $14,763,688 $307,115 $14,763,688829123 UTAH COMMUNITY CREDIT UNION ........................................................................ $0 $306,941 $13,757,613 $306,941 $13,757,613808956 JPMORGAN CHASE BANK NA ................................................................................. $0 $303,536 $48,044,014 $303,536 $48,044,014831003 ARVEST BANK NORMAN ........................................................................................ $0 $300,059 $12,536,082 $300,059 $12,536,082823546 UNIVERSITY OF MISSOURI-KANSAS CITY .............................................................. $0 $299,362 $721,773 $299,362 $721,773828943 ERIE FCU ............................................................................................................... $0 $293,041 $10,244,155 $293,041 $10,244,155820807 REGIONS BANK ...................................................................................................... $0 $291,707 $15,313,057 $291,707 $15,313,057833314 PLAINSCAPITAL BANK ............................................................................................ $0 $289,121 $0 $289,121 $0809514 FIRST COMMONWEALTH ........................................................................................ $0 $288,503 $11,045,786 $288,503 $11,045,786833197 DAUPHIN CNS ELT 95I EDUCAID/WACHOVI ........................................................... $0 $286,311 $3,369 $286,311 $3,369803238 THE NATIONAL BANK ............................................................................................. $0 $284,281 $5,245 $284,281 $5,245807015 FIRST INTERSTATE BANK OF MONTANA ................................................................ $0 $283,468 $8,599,921 $283,468 $8,599,921831643 ROSALIND FRANKLIN UNIV/MED&SCIENCE ............................................................ $0 $281,128 $61,950 $281,128 $61,950831836 ORANGE COUNTY TEACHERS FCU ......................................................................... $0 $280,900 $13,218,986 $280,900 $13,218,986833963 US BANK ELT ACAPITA .......................................................................................... $0 $280,785 $16,085,468 $280,785 $16,085,468834037 TUFTS UNIVERSITY ................................................................................................ $0 $280,602 $22,222 $280,602 $22,222821628 UNION BANK CA ELT CHELA FUND I (TEF) ........................................................... $29,916 $0 $249,643 $652,584 $279,558 $652,584803310 JPMORGAN CHASE BANK NA ................................................................................. $0 $278,414 $3,245,543 $278,414 $3,245,543826651 UNIVERSITY OF MIAMI ........................................................................................... $0 $270,515 $453,832 $270,515 $453,832810563 FIRST TENNESSEE BANK ....................................................................................... $0 $265,627 $126,555 $265,627 $126,555804189 SECURITY NATIONAL BANK ................................................................................... $0 $263,829 $9,321,387 $263,829 $9,321,387821375 ALTRA FCU ............................................................................................................ $0 $261,028 $9,353,314 $261,028 $9,353,314802560 SUNTRUST BANK ................................................................................................... $0 $260,367 $10,228,961 $260,367 $10,228,961808628 US BANK NA .......................................................................................................... $0 $259,679 $14,337,251 $259,679 $14,337,251818093 JPMORGAN CHASE BANK NA ................................................................................. $0 $259,433 $1,194,043 $259,433 $1,194,043

110

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833102 TSB MCALLEN- ELT COSTEP ................................................................................. $0 $254,236 $12,015,251 $254,236 $12,015,251834060 US BANK ELT EDAMERICA .................................................................................... $0 $249,538 $1,651,785 $249,538 $1,651,785809094 ARVEST BANK ........................................................................................................ $0 $248,682 $12,973,914 $248,682 $12,973,914821176 KANSAS STATE BANK OF MANHATTAN KS ............................................................. $0 $248,607 $159,716 $248,607 $159,716824310 WASHINGTON UNIVERSITY ..................................................................................... $0 $248,527 $8,460 $248,527 $8,460805974 JPMORGAN CHASE BANK NA ................................................................................. $0 $245,518 $682,789 $245,518 $682,789824890 REGIS UNIVERSITY ................................................................................................ $0 $241,519 $60,486 $241,519 $60,486830674 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $240,149 $16,171,173 $240,149 $16,171,173831036 INDEPENDENCE FSB .............................................................................................. $0 $238,206 $4,920,253 $238,206 $4,920,253833738 PALMER COLLEGE OF CHIROPRACTIC ................................................................... $0 $237,751 $0 $237,751 $0830526 ST LOUIS COMMUNITY CREDIT UNION .................................................................. $0 $237,154 $8,623,664 $237,154 $8,623,664834096 BANCORPSOUTH ELT MHEAC ................................................................................ $183,356 $8,482,235 $51,173 $3,849,670 $234,529 $12,331,905811111 SUNTRUST BANK ................................................................................................... $0 $234,449 $132,375,855 $234,449 $132,375,855827305 UNIVERSITY CREDIT UNION ................................................................................... $0 $232,857 $10,223,683 $232,857 $10,223,683833895 ZIONS ELT NELNET MGMT CORP-1 & AFF ............................................................ $0 $230,573 $724,431,823 $230,573 $724,431,823830489 COMERICA BANK ................................................................................................... $0 $227,181 $10,433,934 $227,181 $10,433,934810742 CITIZENS STATE BANK .......................................................................................... $0 $224,727 $5,866,170 $224,727 $5,866,170834111 US BANK ELT PCOM STUDENT LOAN LLC ............................................................. $0 $224,594 $44,351 $224,594 $44,351833901 BANK OF NY ELT US EDUCATION LOAN TR .......................................................... $0 $223,376 $0 $223,376 $0834048 KANSAS CITY UNIV MED & BIO SCI ...................................................................... $0 $223,038 $0 $223,038 $0831506 COMMUNITY TRUST BANK ..................................................................................... $0 $221,775 $12,026,509 $221,775 $12,026,509827526 MISSOULA FEDERAL CREDIT UNION ...................................................................... $0 $220,717 $6,467,257 $220,717 $6,467,257830132 UNIVERSITY OF UTAH CU ...................................................................................... $0 $219,517 $9,590,992 $219,517 $9,590,992824837 AMERICAN UNIVERSITY ......................................................................................... $0 $214,843 $110,030 $214,843 $110,030813331 CHARLEROI FEDERAL SAVINGS & LOAN ............................................................... $0 $210,665 $7,997,110 $210,665 $7,997,110834129 UNIVERSITY OF SAN FRANCISCO .......................................................................... $0 $210,610 $2,258 $210,610 $2,258833965 UNIVERSITY OF MD BALTIMORE ............................................................................ $0 $209,449 $0 $209,449 $0815961 UNITED MISSOURI BANK OF KANSAS CITY ........................................................... $0 $209,126 $7,561,724 $209,126 $7,561,724826910 COMMUNITY FIRST CREDIT UNION ........................................................................ $0 $208,876 $9,329,203 $208,876 $9,329,203820718 INTERNATIONAL BANK OF COMMERCE .................................................................. $0 $208,669 $5,217,099 $208,669 $5,217,099831925 ZIONS BANK (OREGON FIRST) ............................................................................... $0 $206,450 $2,513,359 $206,450 $2,513,359808588 JPMORGAN CHASE BANK NA ................................................................................. $0 $205,354 $27,863,404 $205,354 $27,863,404829441 MARINE CREDIT UNION ......................................................................................... $0 $203,596 $8,372,756 $203,596 $8,372,756

111

820998 SPOKANE TEACHERS CREDIT UNION ..................................................................... $0 $202,909 $9,076,496 $202,909 $9,076,496831366 CITIBANK NA ELT STUDENT LOAN CORP ............................................................... $0 $200,903 $7,322,637 $200,903 $7,322,637831011 SUN EAST FCU ...................................................................................................... $0 $199,397 $7,881,858 $199,397 $7,881,858829443 WRIGHT-PATT CREDIT UNION INC ......................................................................... $0 $195,709 $10,706,997 $195,709 $10,706,997805148 WHITNEY NATIONAL BANK ..................................................................................... $0 $194,333 $777,802 $194,333 $777,802829384 WAKEFIELD CO-OPERATIVE BANK ......................................................................... $0 $188,978 $4,472,263 $188,978 $4,472,263831216 JP MORGANCHASE BANK ....................................................................................... $0 $187,955 $6,445,332 $187,955 $6,445,332831555 US BANK NA .......................................................................................................... $0 $186,450 $4,086,339 $186,450 $4,086,339810778 FIRST FINANCIAL BANK NA ................................................................................... $0 $184,266 $229,964 $184,266 $229,964803799 FIRST FINANCIAL BANK ......................................................................................... $0 $183,874 $8,695,757 $183,874 $8,695,757808942 CLS-NATIONAL CITY BANK .................................................................................... $0 $181,431 $781,461 $181,431 $781,461820946 US BANK NA .......................................................................................................... $0 $179,170 $7,485,273 $179,170 $7,485,273822466 CASE WESTERN RESERVE UNIVERSITY ................................................................. $0 $178,456 $288,963 $178,456 $288,963822660 COMERICA BANK ................................................................................................... $0 $172,358 $1,237,646 $172,358 $1,237,646831083 A.T. STILL UNIV OF HEALTH SCI ........................................................................... $0 $170,972 $29,437 $170,972 $29,437834231 US BANK ELT AFFINITY DIRECT ............................................................................ $0 $170,808 $1,943,288 $170,808 $1,943,288830612 A.T. STILL UNIV OF HEALTH SCI ........................................................................... $0 $169,242 $0 $169,242 $0800246 ARKANSAS RURAL ENDOWMENT FUND INC .......................................................... $0 $169,087 $169,087 $0833395 JPMORGAN CHASE ELT FIRST UNION NAT’ ........................................................... $0 $168,003 $20,575,107 $168,003 $20,575,107820622 JPMORGAN CHASE BANK NA ................................................................................. $0 $165,862 $13,566,008 $165,862 $13,566,008828454 ADELPHI UNIVERSITY ............................................................................................ $0 $164,920 $23,038 $164,920 $23,038834182 UNIVERSITY OF NEW MEXICO ............................................................................... $0 $163,144 $77,558 $163,144 $77,558824705 PATRIOT FEDERAL CREDIT UNION ......................................................................... $0 $161,742 $6,209,907 $161,742 $6,209,907806722 CADENCE BANK NA ............................................................................................... $0 $161,221 $6,563,556 $161,221 $6,563,556825175 UNIVERSITY OF DAYTON ........................................................................................ $0 $159,614 $13,969 $159,614 $13,969833946 US BANK ELT 1ST STUDENT FINANCIAL ................................................................ $0 $159,045 $9,124,946 $159,045 $9,124,946830977 POLICE & FIRE FEDERAL CREDIT UNION .............................................................. $0 $158,241 $9,443,803 $158,241 $9,443,803833599 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $157,104 $5,967,876 $157,104 $5,967,876828341 TEXAS STATE BANK ............................................................................................... $0 $156,891 $7,650,844 $156,891 $7,650,844811076 ZIONS BANK (WASHINGTON FIRST) ....................................................................... $0 $154,815 $2,508,573 $154,815 $2,508,573802486 SUNTRUST BANK ................................................................................................... $0 $154,751 $154,751 $0821623 UNION BANK CA ELT CHELA FUND I (TEF) ........................................................... $37,883 $115,310 $113,914 $153,194 $113,914833918 SOUTHERN METHODIST UNIVERSITY ..................................................................... $0 $152,748 $41,668 $152,748 $41,668833750 WESTERN UNIV OF HEALTH SCIENCES ................................................................. $0 $152,584 $618,085 $152,584 $618,085801891 US BANK NA .......................................................................................................... $0 $152,242 $3,095 $152,242 $3,095831824 US BANK NA .......................................................................................................... $0 $150,818 $5,660,015 $150,818 $5,660,015832215 NET FCU ................................................................................................................ $0 $149,801 $5,512,386 $149,801 $5,512,386809643 HARLEYSVILLE NAT’L BANK AND TRUST ............................................................... $0 $149,172 $7,910,371 $149,172 $7,910,371827242 HOME SAVINGS & LOAN CO YOUNGSTOWN .......................................................... $0 $149,064 $7,000 $149,064 $7,000831122 THE INDEPENDENT BANKERS BANK ...................................................................... $0 $148,550 $6,451,709 $148,550 $6,451,709

112

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

803634 JPMORGAN CHASE BANK NA ................................................................................. $0 $147,689 $148,804 $147,689 $148,804812187 UNIVERSITY OF OKLAHOMA LEW WENTZ FO ......................................................... $0 $147,610 $0 $147,610 $0813389 FIRST COMMONWEALTH F C U .............................................................................. $0 $147,192 $5,374,625 $147,192 $5,374,625829189 ALABAMA HIGHER EDUCATION LOAN CORP .......................................................... $101,677 $3,074,842 $42,896 $2,915,872 $144,573 $5,990,714830186 JP MORGAN CHASE BANK ..................................................................................... $0 $142,652 $6,418,076 $142,652 $6,418,076809685 LAFAYETTE BANK ................................................................................................... $0 $142,173 $5,632,003 $142,173 $5,632,003823699 ASSOCIATED BANK N.A$0 ..................................................................................... $141,984 $141,984 $0833810 CARNEGIE INSURANCE COMPANY ......................................................................... $0 $139,948 $574,430 $139,948 $574,430824721 DUKE UNIVERSITY ................................................................................................. $0 $139,463 $38,125 $139,463 $38,125832748 OMEGA FCU ........................................................................................................... $0 $138,183 $5,427,096 $138,183 $5,427,096809870 PEOPLES NATIONAL BANK ..................................................................................... $0 $134,626 $5,204,439 $134,626 $5,204,439834121 PACE UNIVERSITY ................................................................................................. $0 $132,801 $20,486 $132,801 $20,486834074 UNIVERSITY OF LAVERNE ...................................................................................... $0 $132,766 $132,766 $0828562 MUNICIPAL TRUST & SAVINGS BANK .................................................................... $0 $132,578 $7,874,273 $132,578 $7,874,273804959 CLS-NATIONAL CITY BANK KENTUCKY .................................................................. $0 $132,321 $647,269 $132,321 $647,269811325 FIRST UNION NATIONAL BANK ............................................................................... $0 $132,226 $0 $132,226 $0819524 PLATTE VALLEY STATE BANK & TRUST CO ........................................................... $0 $131,990 $5,306,405 $131,990 $5,306,405827985 STATE NATIONAL BANK ......................................................................................... $0 $131,548 $6,337,962 $131,548 $6,337,962811911 FIRST NATIONAL BANK OF RIVER FALLS ............................................................... $0 $130,951 $7,173,588 $130,951 $7,173,588823422 BOEING EMPLOYEES CREDIT UNION ..................................................................... $0 $130,912 $5,884,548 $130,912 $5,884,548833624 GEORGIA STUDENT FINANCE AUTH ....................................................................... $0 $130,746 $7,578,445 $130,746 $7,578,445806695 KEESLER FEDERAL CREDIT UNION ........................................................................ $0 $130,715 $5,930,296 $130,715 $5,930,296833371 AUSTIN BANK N A ................................................................................................. $0 $130,007 $6,233,002 $130,007 $6,233,002832364 SANFORD INSTITUTION FOR SAVINGS ................................................................... $0 $129,174 $5,768,242 $129,174 $5,768,242809507 FIRST NATIONAL BANK & TRUST CO ..................................................................... $0 $128,073 $6,634,779 $128,073 $6,634,779821087 JPMORGAN CHASE BANK NA ................................................................................. $0 $127,987 $5,798,539 $127,987 $5,798,539833892 ILLINOIS COLLEGE OF OPTOMETRY ....................................................................... $0 $126,620 $126,620 $0833361 STUDENT LOAN FUNDING US BANK ELT ............................................................... $0 $125,591 $8,039,480 $125,591 $8,039,480834014 PARKER COLLEGE OF CHIROPRACTIC ................................................................... $0 $124,698 $0 $124,698 $0818659 GREAT WISCONSIN CREDIT UNION ........................................................................ $0 $123,621 $4,622,403 $123,621 $4,622,403834166 LOGAN COLLEGE OF CHIROPRACTIC ..................................................................... $0 $122,879 $0 $122,879 $0813532 FIRST FEDERAL SAVINGS AND LOAN ASSO ........................................................... $0 $122,281 $6,554,571 $122,281 $6,554,571833815 PENNSYLVANIA COLLEGE OF OPTOMETRY ............................................................ $0 $122,181 $26,707 $122,181 $26,707

113

834057 INDIANA WESLEYAN UNIVERSITY ........................................................................... $0 $121,877 $2,397,243 $121,877 $2,397,243828910 BELCO COMMUNITY CREDIT UNION ...................................................................... $0 $121,240 $4,485,550 $121,240 $4,485,550834136 BASTYR UNIVERSITY ............................................................................................. $0 $119,924 $4,123,317 $119,924 $4,123,317802844 US BANK NA .......................................................................................................... $0 $119,870 $6,647,421 $119,870 $6,647,421834062 SANTA CLARA UNIVERSITY .................................................................................... $0 $119,187 $0 $119,187 $0810725 BROADWAY NATIONAL BANK ................................................................................. $0 $117,092 $5,934,817 $117,092 $5,934,817831929 WOODFOREST NATIONAL BANK ............................................................................. $0 $116,030 $5,142,116 $116,030 $5,142,116832123 UNIVERSITY CREDIT UNION ................................................................................... $0 $115,954 $76,691 $115,954 $76,691819256 FOX COMMUNITIES CREDIT UNION ....................................................................... $0 $115,006 $6,481,880 $115,006 $6,481,880831059 HSBC BANK USA ................................................................................................... $0 $112,709 $16,888,518 $112,709 $16,888,518833964 LIFE CHIROPRACTIC COLLEGE WEST .................................................................... $0 $111,981 $2,424,925 $111,981 $2,424,925817558 CAMPUS FEDERAL CREDIT UNION ........................................................................ $0 $111,791 $4,564 $111,791 $4,564805979 COMERICA BANK ................................................................................................... $0 $111,764 $1,030,081 $111,764 $1,030,081832398 LIFE UNIVERSITY ................................................................................................... $0 $111,641 $3,636,886 $111,641 $3,636,886832600 SB1 FEDERAL CREDIT UNION ............................................................................... $0 $111,578 $4,302,237 $111,578 $4,302,237831678 ILLINOIS INSTITUTE OF TECHNOLOGY ................................................................... $0 $111,356 $111,356 $0828969 AMERICO CU ......................................................................................................... $0 $111,080 $3,950,869 $111,080 $3,950,869801953 FIRST NATIONAL BANK .......................................................................................... $0 $110,596 $7,243,888 $110,596 $7,243,888831970 THREE RIVERS FEDERAL CREDIT UNION .............................................................. $0 $110,449 $5,999,111 $110,449 $5,999,111809456 ADAMS COUNTY NATIONAL BANK .......................................................................... $0 $109,378 $3,761,985 $109,378 $3,761,985828912 USSCO JOHNSTOWN FED CREDIT UNION .............................................................. $0 $108,991 $4,609,721 $108,991 $4,609,721809479 LEBANON VALLEY FARMERS BANK ....................................................................... $0 $108,182 $4,621,473 $108,182 $4,621,473833956 NATIONAL-LOUIS UNIVERSITY ................................................................................ $0 $107,906 $0 $107,906 $0834178 UNION BANK ELT UNIVERSITY OF NEBRAS ........................................................... $0 $107,370 $0 $107,370 $0806689 HANCOCK BANK .................................................................................................... $0 $107,128 $241,077 $107,128 $241,077834187 UNIVERSITY OF ARIZONA ...................................................................................... $0 $106,642 $839,827 $106,642 $839,827803478 CLS-NATIONAL CITY BANK .................................................................................... $0 $106,479 $629,447 $106,479 $629,447834045 MICHIGAN STATE UNIV COLLEGE OF LAW ............................................................. $0 $104,970 $0 $104,970 $0819133 BLACK HILLS FEDERAL CREDIT UNION ................................................................. $0 $103,442 $4,952,974 $103,442 $4,952,974833072 TOWN & COUNTRY BANK ...................................................................................... $0 $103,109 $5,488,177 $103,109 $5,488,177834044 KANSAS STATE BANK ELT KSU FOUNDATIO .......................................................... $0 $103,059 $7,587 $103,059 $7,587834095 TRUSTMARK ELT MHEAC ....................................................................................... $65,978 $4,260,964 $37,060 $2,935,058 $103,037 $7,196,022834028 FLORIDA STATE UNIVERSITY ................................................................................. $0 $102,842 $2,664 $102,842 $2,664818478 EL PASO AREA TEACHERS FCU ............................................................................. $0 $102,550 $4,836,051 $102,550 $4,836,051833011 WACOPSE FCU ....................................................................................................... $0 $102,181 $3,491,122 $102,181 $3,491,122834016 NORTHWESTERN HEALTH SCI UNIVERSITY ............................................................ $0 $101,789 $4,250 $101,789 $4,250809817 NATIONAL PENN BANK .......................................................................................... $0 $101,766 $5,342,790 $101,766 $5,342,790824573 ZIONS BANK ELT EFS FINANCE CO ....................................................................... ($87) $101,196 $1,894,938 $101,109 $1,894,938828302 SERVICE 1ST FCU ................................................................................................. $0 $100,405 $4,292,640 $100,405 $4,292,640809674 IRWIN BANK & TRUST COMPANY .......................................................................... $0 $100,297 $4,312,965 $100,297 $4,312,965

114

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

805811 UNION TRUST CO—ELLSWORTH ........................................................................... $0 $99,381 $6,305,428 $99,381 $6,305,428824518 JOHNSON BANK ..................................................................................................... $0 $98,837 $3,795,255 $98,837 $3,795,255833252 LEGACYTEXAS BANK .............................................................................................. $0 $97,697 $4,764,757 $97,697 $4,764,757834133 UNION BANK ELT MUO FOUNDATION .................................................................... $0 $96,746 $1 $96,746 $1806723 RENASANT BANK ................................................................................................... $0 $96,429 $13,666 $96,429 $13,666899996 SLMA ..................................................................................................................... $0 $93,579 $6,138,361 $93,579 $6,138,361804657 SECURITY BANK OF KANSAS CITY ........................................................................ $0 $93,445 $3,865,459 $93,445 $3,865,459833828 DESERET FIRST CREDIT UNION ............................................................................. $0 $92,554 $3,969,697 $92,554 $3,969,697805801 SKOWHEGAN SAVINGS BANK ................................................................................. $0 $92,400 $3,689,723 $92,400 $3,689,723810819 FIRST NATIONAL BANK OF CENTRAL TX ................................................................ $0 $91,919 $72,591 $91,919 $72,591833869 WESTERN ILLINOIS UNIVERSITY ............................................................................ $0 $91,907 $4,103,401 $91,907 $4,103,401834021 SHERMAN COLLEGE OF STRAIGHT CHIRO ............................................................. $0 $91,783 $2,657,122 $91,783 $2,657,122829651 TEXAS TECH FEDERAL CREDIT UNION .................................................................. $0 $91,110 $3,645,479 $91,110 $3,645,479807802 EMPOWER FEDERAL CREDIT UNION ...................................................................... $0 $90,891 $3,921,333 $90,891 $3,921,333831361 VIEWPOINT BANK ................................................................................................... $0 $89,152 $4,225,418 $89,152 $4,225,418809402 PNC EDUCATION LOAN CTR .................................................................................. $0 $88,726 $10,701,085 $88,726 $10,701,085826943 ISU FEDERAL CREDIT UNION ................................................................................ $0 $88,034 $102,041 $88,034 $102,041830168 ARIZONA FCU ........................................................................................................ $0 $87,794 $3,761,607 $87,794 $3,761,607831403 CLS-NATIONAL CITY BANK OF OHIO ...................................................................... $0 $87,548 $1,348,535 $87,548 $1,348,535831784 INTERNATIONAL BANK OF COMMERCE .................................................................. $0 $86,834 $24,830 $86,834 $24,830833305 BANK OF TEXAS NA ............................................................................................... $0 $86,061 $1,731,769 $86,061 $1,731,769831259 US BANK NA .......................................................................................................... $0 $85,753 $3,349,168 $85,753 $3,349,168828972 TIMBERLAND FEDERAL CREDIT UNION ................................................................. $0 $85,604 $3,305,757 $85,604 $3,305,757807809 CHEMUNG CANAL TRUST COMPANY ..................................................................... $0 $84,462 $3,664,589 $84,462 $3,664,589834068 DUQUESNE UNIVERSITY ........................................................................................ $0 $84,036 $84,036 $0830317 STATE EMPLOYEES FCU ........................................................................................ $0 $83,176 $3,404,933 $83,176 $3,404,933833560 ERIE INSURANCE EXCHANGE CU .......................................................................... $0 $82,879 $3,228,489 $82,879 $3,228,489833742 SIMMONS COLLEGE ............................................................................................... $0 $82,334 $64,050 $82,334 $64,050823561 MICHIGAN STATE UNIVERSITY FCU ....................................................................... $0 $82,263 $4,629,884 $82,263 $4,629,884805803 OCEAN COMMUNITIES FCU ................................................................................... $0 $82,129 $3,856,196 $82,129 $3,856,196820685 INDIANA UNIVERSITY EMPLOYEES FCU ................................................................. $0 $81,307 $5,377,208 $81,307 $5,377,208832139 JPMORGAN CHASE BANK ELT SLFC INC ............................................................... $0 $80,855 $65,402,442 $80,855 $65,402,442834015 DREXEL UNIVERSITY ............................................................................................. $0 $80,732 $1,383,985 $80,732 $1,383,985

115

822897 WESTBY CO-OP CREDIT UNION ............................................................................. $0 $80,496 $3,273,828 $80,496 $3,273,828827888 WINGS FINANCIAL FCU .......................................................................................... $0 $80,320 $3,638,387 $80,320 $3,638,387809321 APOLLO TRUST COMPANY ..................................................................................... $0 $80,263 $4,683,684 $80,263 $4,683,684833426 UW OSHKOSH CREDIT UNION ................................................................................ $0 $79,850 $3,833,559 $79,850 $3,833,559834001 CLEVELAND CHIROPRACTIC COLLEGE ................................................................... $0 $79,289 $0 $79,289 $0834141 WESTERN STATES CHIRO COLLEGE ...................................................................... $0 $79,135 $0 $79,135 $0826895 KOHLER CREDIT UNION ......................................................................................... $0 $78,516 $4,512,589 $78,516 $4,512,589815483 NORSTATE FEDERAL CREDIT UNION ..................................................................... $0 $77,695 $2,868,798 $77,695 $2,868,798802069 TD BANKNORTH NA ............................................................................................... $0 $76,802 $272,764 $76,802 $272,764823619 COVANTAGE CREDIT UNION .................................................................................. $0 $76,548 $3,419,990 $76,548 $3,419,990808888 NATIONAL CITY BANK OF OHIO ............................................................................. $0 $75,337 $1,310,391 $75,337 $1,310,391822531 SUSQUEHANNA VALLEY FEDERAL CREDIT U ......................................................... $0 $75,211 $2,417,453 $75,211 $2,417,453834194 OHIO NORTHERN UNIVERSITY ............................................................................... $0 $74,947 $0 $74,947 $0822218 TRI CITY NATIONAL BANK ..................................................................................... $0 $74,727 $4,288,731 $74,727 $4,288,731810864 HAPPY STATE BANK .............................................................................................. $0 $74,063 $3,610,827 $74,063 $3,610,827824674 NORWAY SAVINGS BANK ....................................................................................... $0 $73,810 $641,304 $73,810 $641,304899986 SLM ECFC ............................................................................................................. $0 $73,804 $4,283,679 $73,804 $4,283,679834154 UNIVERSITY OF BRIDGEPORT ................................................................................ $0 $73,521 $0 $73,521 $0833344 FIRST NATIONAL BK & TR/WEATHERFORD ............................................................ $0 $73,483 $2,346,198 $73,483 $2,346,198822429 SOUTHSIDE STATE BANK ....................................................................................... $0 $73,246 $3,663,775 $73,246 $3,663,775821995 YALE UNIVERSITY—A. GALLAGHER ...................................................................... $0 $72,192 $0 $72,192 $0821446 SANDY SPRING BANK ............................................................................................ $0 $71,887 $2,484,445 $71,887 $2,484,445833458 SUNTRUST BANK ................................................................................................... $0 $71,754 $0 $71,754 $0834126 TEXAS CHIROPRACTIC COLLEGE ........................................................................... $0 $71,510 $90,998 $71,510 $90,998824192 BANK OF NEW ORLEANS ....................................................................................... $0 $71,509 $1,953,003 $71,509 $1,953,003822551 VISIONS FEDERAL CREDIT UNION ......................................................................... $0 $71,502 $4,385,150 $71,502 $4,385,150831775 ATLANTIC REGIONAL FCU ...................................................................................... $0 $71,353 $2,832,011 $71,353 $2,832,011826592 CTCE FEDERAL CREDIT UNION ............................................................................. $0 $70,912 $2,751,407 $70,912 $2,751,407828954 MERHO FEDERAL CREDIT UNION .......................................................................... $0 $70,632 $2,812,286 $70,632 $2,812,286805595 WACHOVIA BANK NA ............................................................................................. $0 $70,333 $38,003,327 $70,333 $38,003,327819451 US BANK NA .......................................................................................................... $0 $70,127 $2,173,142 $70,127 $2,173,142834140 TEXAS CHRISTIAN UNIVERSITY .............................................................................. $0 $69,214 $0 $69,214 $0825597 COMMERCE BANK NA ........................................................................................... $0 $68,915 $2,724,976 $68,915 $2,724,976824038 HUDSON VALLEY FEDERAL CREDIT UNION ........................................................... $0 $68,256 $4,002,864 $68,256 $4,002,864834005 UNIVERSITY OF MISSOURI ST. LOUIS .................................................................... $0 $67,941 $14,250 $67,941 $14,250829565 CREIGHTON FCU .................................................................................................... $0 $67,814 $2,686,848 $67,814 $2,686,848834078 UNIVERSITY OF CENTRAL FLORIDA ....................................................................... $0 $66,875 $66,875 $0828965 AMERICAN HERITAGE FEDERAL CREDIT UN .......................................................... $0 $66,545 $3,959,131 $66,545 $3,959,131809713 MARS NATIONAL BANK .......................................................................................... $0 $66,469 $3,381,765 $66,469 $3,381,765833920 NAT’L COLLEGE OF NATURPATHIC MED ................................................................ $0 $66,043 $0 $66,043 $0

116

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833089 THE UNIVERSITY OF TULSA ................................................................................... $0 $65,995 $0 $65,995 $0833418 WOODFOREST NATIONAL BANK ............................................................................. $0 $65,367 $3,107,094 $65,367 $3,107,094808664 PARK NATIONAL BANK ........................................................................................... $0 $64,551 $4,100,311 $64,551 $4,100,311828953 COMMERCE BANK ................................................................................................. $0 $64,547 $2,578,581 $64,547 $2,578,581818613 CAPITAL CREDIT UNION ........................................................................................ $0 $64,260 $3,539,858 $64,260 $3,539,858834160 FIFTH THIRD ELT STUDENT LOAN XPRESS ............................................................ $0 $64,082 $6,949,246 $64,082 $6,949,246831622 SAN ANGELO NATIONAL BANK ............................................................................... $0 $63,981 $21,749 $63,981 $21,749831157 THRIVENT FINANCIAL FOR LUTHERANS ................................................................. $0 $63,385 $3,682,295 $63,385 $3,682,295820872 ESB BANK ............................................................................................................. $0 $63,063 $3,653,689 $63,063 $3,653,689810173 AMERISERV FINANCIAL .......................................................................................... $0 $62,883 $2,534,503 $62,883 $2,534,503833731 SOUTHWEST COLLEGE OF NATUROPATHIC ............................................................ $0 $62,522 $0 $62,522 $0830307 WEOKIE CREDIT UNION ......................................................................................... $0 $62,449 $3,605,180 $62,449 $3,605,180834091 BONY ELT COLLEGIATE FUND SVCS RI/CF ............................................................ $0 $61,854 $189,623 $61,854 $189,623811000 FIRST FINANCIAL BANK ......................................................................................... $0 $61,648 $23,875 $61,648 $23,875808118 M&T BANK EDUCATIONAL LENDING ...................................................................... $0 $61,595 $42,700 $61,595 $42,700805784 OXFORD FCU ......................................................................................................... $0 $61,487 $2,692,691 $61,487 $2,692,691833387 SUMMIT BANK ....................................................................................................... $0 $61,417 $286,868 $61,417 $286,868813571 FIVEPOINT CREDIT UNION ..................................................................................... $0 $61,168 $2,862,236 $61,168 $2,862,236832467 MAINE STATE CU ................................................................................................... $0 $61,015 $2,528,606 $61,015 $2,528,606828931 TRI COUNTY AREA FCU ......................................................................................... $0 $60,191 $2,761,284 $60,191 $2,761,284834128 TRINITY INTERNATIONAL UNIVERSITY .................................................................... $0 $60,070 $88,160 $60,070 $88,160805798 MAINE FAMILY CREDIT UNION .............................................................................. $0 $59,722 $2,038,390 $59,722 $2,038,390834019 CLAREMONT GRADUATE UNIVERSITY .................................................................... $0 $59,691 $0 $59,691 $0806931 STOCKMAN BANK OF MONTANA ............................................................................ $0 $59,358 $15,763 $59,358 $15,763809998 EPHRATA NATIONAL BANK ..................................................................................... $0 $59,269 $3,026,150 $59,269 $3,026,150827999 SMART FINANCIAL CREDIT UNION ......................................................................... $0 $59,265 $2,222,027 $59,265 $2,222,027810731 CITIZENS NATIONAL BANK ..................................................................................... $0 $58,899 $2,803,873 $58,899 $2,803,873826855 PIONEER SAVINGS BANK ....................................................................................... $0 $58,598 $3,382,529 $58,598 $3,382,529821132 GREAT SOUTHERN SAVINGS BANK ........................................................................ $0 $58,508 $2,939,311 $58,508 $2,939,311820278 PITTSBURGH FIREFIGHTERS FEDERAL CRE ........................................................... $0 $58,243 $1,916,020 $58,243 $1,916,020805621 BAR HARBOR BANKING & TRUST COMPANY ........................................................ $0 $57,899 $2,447,886 $57,899 $2,447,886834073 UNIVERSITY OF PHOENIX ...................................................................................... $0 $57,785 $635,244 $57,785 $635,244806700 MERCHANTS & FARMERS BANK ............................................................................ $0 $57,572 $61,699 $57,572 $61,699

117

833610 UNION BANK ELT COLLEGE BOUND LOANS .......................................................... $0 $57,517 $5,669,932 $57,517 $5,669,932833957 NATIONAL UNIV OF HEALTH SCIENCES ................................................................. $0 $56,967 $288,715 $56,967 $288,715807510 WACHOVIA EDUCATION FINANCE INC .................................................................... $0 $56,361 $2,636,399 $56,361 $2,636,399833081 US BANK ELT SLFC ............................................................................................... $0 $56,335 $3,507,528 $56,335 $3,507,528832723 LEE HOSPITAL CREDIT UNION ............................................................................... $0 $56,111 $2,157,464 $56,111 $2,157,464828560 WEST BEND SAVINGS BANK S. A$0 ...................................................................... $56,083 $2,868,056 $56,083 $2,868,056810007 FIRST NATIONAL BANK OF DANVILLE .................................................................... $0 $55,707 $2,120,634 $55,707 $2,120,634811571 JPMORGAN CHASE BANK NA ................................................................................. $0 $55,316 $3,232,082 $55,316 $3,232,082829114 OTIS FCU ............................................................................................................... $0 $55,183 $2,208,921 $55,183 $2,208,921832196 TOBYHANNA ARMY DEPOT .................................................................................... $0 $55,113 $1,716,079 $55,113 $1,716,079810104 THE MERCHANTS NATIONAL BANK OF KITT .......................................................... $0 $54,948 $3,045,108 $54,948 $3,045,108831222 PENN EAST FCU .................................................................................................... $0 $54,931 $1,774,612 $54,931 $1,774,612833294 BANK OF GLOUCESTER CO /FULTON BNK ............................................................. $0 $54,647 $1,949,693 $54,647 $1,949,693825446 UNISON CREDIT UNION ......................................................................................... $0 $54,521 $2,157,741 $54,521 $2,157,741833804 KEY BANK NA ........................................................................................................ $0 $54,388 $1,141,078 $54,388 $1,141,078800241 JPMORGAN CHASE BANK NA ................................................................................. $0 $54,383 $5,062,741 $54,383 $5,062,741832053 AMERICAN SAVINGS BANK FSB ............................................................................. $0 $54,244 $119,753 $54,244 $119,753833928 NAROPA UNIVERSITY ............................................................................................. $0 $54,136 $54,136 $0831606 FIRST CONVENIENCE BANK ................................................................................... $0 $53,484 $2,509,246 $53,484 $2,509,246812041 WAUKESHA STATE BANK ....................................................................................... $0 $53,208 $2,690,906 $53,208 $2,690,906830146 USU CHARTER FCU ............................................................................................... $0 $53,159 $2,488,620 $53,159 $2,488,620828937 G A P FCU ............................................................................................................. $0 $53,143 $2,035,515 $53,143 $2,035,515831179 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $52,939 $1,788,257 $52,939 $1,788,257833247 EDUCATIONFIRST FEDERAL CREDIT UNION ........................................................... $0 $52,530 $2,625,653 $52,530 $2,625,653833868 SECU EMPLOYEES CU ........................................................................................... $0 $52,208 $2,322,851 $52,208 $2,322,851831908 CITY & COUNTY CREDIT UNION ............................................................................ $0 $51,905 $2,329,114 $51,905 $2,329,114833634 BANK OF ALBUQUERQUE NA ................................................................................. $0 $51,842 $2,096,116 $51,842 $2,096,116818493 CONNEXUS CU ...................................................................................................... $0 $51,709 $2,203,484 $51,709 $2,203,484821215 PEOPLES BANK OF KANKAKEE COUNTY ................................................................ $0 $51,661 $501,371 $51,661 $501,371813414 SCOTTDALE BANK & TRUST CO ............................................................................ $0 $51,408 $2,649,598 $51,408 $2,649,598819770 FIRST FINANCIAL BANK USA ................................................................................. $0 $51,228 $3,254,670 $51,228 $3,254,670820284 SOVEREIGN BANK .................................................................................................. $0 $50,868 $2,269,072 $50,868 $2,269,072805800 SEABOARD FEDERAL CREDIT UNION ..................................................................... $0 $50,290 $2,123,694 $50,290 $2,123,694832678 WASHINGTON AREA TEACHERS FCU ..................................................................... $0 $50,157 $1,814,810 $50,157 $1,814,810821549 SCHUYLKILL COUNTY SCHOOLEMPLOYEES C ........................................................ $0 $50,020 $2,121,195 $50,020 $2,121,195827171 ANDROSCOGGIN SAVINGS BANK ........................................................................... $0 $49,806 $32,191 $49,806 $32,191833674 PALMER COLLEGE OF CHIROPRACTIC WEST ......................................................... $0 $49,561 $2,646,080 $49,561 $2,646,080831476 BLACKHAWK CREDIT UNION .................................................................................. $0 $48,621 $2,852,743 $48,621 $2,852,743827767 YORK COUNTY FCU ............................................................................................... $0 $48,597 $2,033,468 $48,597 $2,033,468834114 CARDINAL STRITCH UNIVERSITY ........................................................................... $0 $48,537 $1,176,005 $48,537 $1,176,005

118

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

832163 CORNERSTONE COMMUNITY FCU .......................................................................... $0 $48,409 $2,033,974 $48,409 $2,033,974829929 IDEPENDENT ORDER OF FORESTERS .................................................................... $0 $48,318 $2,648,163 $48,318 $2,648,163833099 WASHINGTON COMMUNITY FCU ............................................................................ $0 $48,165 $1,839,097 $48,165 $1,839,097831258 CITIZENSFIRST CREDIT UNION .............................................................................. $0 $47,288 $2,244,322 $47,288 $2,244,322831171 CO-OP CREDIT UNION ........................................................................................... $0 $47,288 $1,706,340 $47,288 $1,706,340828917 HERITAGE VALLEY F C U ...................................................................................... $0 $47,019 $1,911,775 $47,019 $1,911,775810643 FIRST HORIZON BANK ........................................................................................... $0 $46,844 $18,685 $46,844 $18,685832955 KEYSTONE FCU ...................................................................................................... $0 $46,634 $1,744,756 $46,634 $1,744,756803348 CLS-NATIONAL CITY BANK INDIANA ...................................................................... $0 $45,052 $45,933 $45,052 $45,933832742 TRI BORO FCU ...................................................................................................... $0 $44,698 $1,749,203 $44,698 $1,749,203813285 UNION BK CA ELT CHELA FUND I (TEFFC) ........................................................... $34,706 $9,793 $7,462 $44,499 $7,462824264 COMMONWEALTH ONE FEDERAL CREDIT UNI ....................................................... $0 $44,494 $1,727,685 $44,494 $1,727,685803674 CLS-NATIONAL CITY BANK INDIANA ...................................................................... $0 $44,426 $764,884 $44,426 $764,884828898 JSTC EMPLOYEES FCU .......................................................................................... $0 $44,417 $1,728,204 $44,417 $1,728,204809659 HONESDALE NATIONAL BANK ................................................................................ $0 $44,411 $2,524,595 $44,411 $2,524,595817440 FAMILY FIRST FEDERAL CREDIT UNION ................................................................ $0 $44,170 $1,976,595 $44,170 $1,976,595805727 KATAHDIN FEDERAL CREDIT UNION ...................................................................... $0 $43,975 $1,844,927 $43,975 $1,844,927828853 UNITEDONE CU ...................................................................................................... $0 $43,852 $1,865,285 $43,852 $1,865,285805126 JEFF DAVIS BANK & TRUST COMPANY .................................................................. $0 $43,839 $1,925,460 $43,839 $1,925,460810997 LAREDO NATIONAL BANK ...................................................................................... $0 $43,815 $2,298,370 $43,815 $2,298,370823400 ARVEST BANK ........................................................................................................ $0 $43,306 $0 $43,306 $0833821 UNION BANK & TRUST ELT HRB ........................................................................... $0 $42,758 $0 $42,758 $0823181 OKLAHOMA CITY UNIVERSITY ................................................................................ $0 $42,100 $42,100 $0833643 TEXAS BANK .......................................................................................................... $0 $41,769 $1,977,498 $41,769 $1,977,498826104 OZAUKEE BANK ..................................................................................................... $0 $41,738 $2,339,851 $41,738 $2,339,851826294 BATH SAVINGS INSTITUTION .................................................................................. $0 $41,663 $2,374,384 $41,663 $2,374,384832611 N F G #2 FCU ....................................................................................................... $0 $41,358 $1,619,107 $41,358 $1,619,107810981 FARMERS STATE BANK .......................................................................................... $0 $41,251 $1,729,478 $41,251 $1,729,478833012 HORIZON FEDERAL CREDIT UNION ....................................................................... $0 $41,052 $1,623,118 $41,052 $1,623,118826584 CENTRAL CITY CREDIT UNION .............................................................................. $0 $41,026 $2,488,657 $41,026 $2,488,657833682 CLARION ONIZED FEDERAL CREDIT UNION ........................................................... $0 $40,545 $1,748,065 $40,545 $1,748,065833417 POLONIA BANK ...................................................................................................... $0 $40,260 $2,077,592 $40,260 $2,077,592833882 CITIZENS BANK C/O EDUCATION FINANCE ............................................................ $0 $40,133 $2,365,054 $40,133 $2,365,054

119

832615 LEHIGH VALLEY EDUCATORS CU ........................................................................... $0 $39,983 $2,380,874 $39,983 $2,380,874833840 EDUCATION CREDIT UNION ................................................................................... $0 $39,828 $2,083,470 $39,828 $2,083,470829340 MEMBERS CREDIT UNION ..................................................................................... $0 $39,665 $2,015,959 $39,665 $2,015,959814142 MIDCOAST FEDERAL CREDIT UNION ..................................................................... $0 $39,475 $1,446,081 $39,475 $1,446,081832743 P & G MEHOOPANY EMPLOYEES FCU ................................................................... $0 $39,399 $1,463,175 $39,399 $1,463,175832203 PARK VIEW FEDERAL CREDIT UNION .................................................................... $0 $39,146 $1,838,316 $39,146 $1,838,316826191 FIRST NEW YORK FCU ........................................................................................... $0 $39,096 $1,524,536 $39,096 $1,524,536827165 MATANUSKA VALLEY FEDERAL CREDIT UNI .......................................................... $0 $39,085 $2,213,234 $39,085 $2,213,234834137 US BANK ELT MEDINVEST LLC .............................................................................. $0 $39,020 $0 $39,020 $0830544 MAINE HIGHLANDS FCU ........................................................................................ $0 $38,883 $1,509,558 $38,883 $1,509,558829246 SHORELINE CREDIT UNION ................................................................................... $0 $38,477 $1,698,445 $38,477 $1,698,445828564 MIDWEST AMERICA FEDERAL CREDIT UNI ............................................................ $0 $38,288 $0 $38,288 $0828099 GLACIER HILLS CREDIT UNION ............................................................................. $0 $37,998 $1,684,608 $37,998 $1,684,608828535 STATE NATIONAL BANK ......................................................................................... $0 $37,921 $1,860,294 $37,921 $1,860,294833652 FIRST NATIONAL BANK WICHITA FALLS ................................................................. $0 $37,674 $2,281,567 $37,674 $2,281,567810012 COMMUNITY BANKS NA ......................................................................................... $0 $37,633 $2,390,695 $37,633 $2,390,695805734 ANDROSCOGGIN SVGS BANK ................................................................................. $0 $37,630 $16,496 $37,630 $16,496823864 HCSB ..................................................................................................................... $0 $37,588 $1,881,838 $37,588 $1,881,838817545 GRANITE CREDIT UNION ........................................................................................ $0 $37,487 $1,545,184 $37,487 $1,545,184807002 FIRST SECURITY BANK OF BOZEMAN ................................................................... $0 $37,191 $1,445,686 $37,191 $1,445,686831488 FIRST TEXOMA NAT’L BANK .................................................................................. $0 $37,014 $1,425,482 $37,014 $1,425,482823936 HARVARD UNIVERSITY ........................................................................................... $0 $36,952 $3,564,694 $36,952 $3,564,694833540 FIRSTBANK ............................................................................................................ $0 $36,928 $1,793,620 $36,928 $1,793,620834151 FOREST INST OF PROF PSYCHOLOGY ................................................................... $0 $36,532 $0 $36,532 $0819539 FIRST FINANCIAL BANK ......................................................................................... $0 $36,444 $29,933 $36,444 $29,933822908 US BANK NA .......................................................................................................... $0 $36,300 $2,182,583 $36,300 $2,182,583834206 PACIFIC GRADUATE SCHOOL OF PSYCHOLO ......................................................... $0 $35,993 $117,049 $35,993 $117,049813381 RIVERFRONT FCU .................................................................................................. $0 $35,788 $2,002,062 $35,788 $2,002,062831576 LANDMARK BANK NA ............................................................................................. $0 $35,757 $1,606,322 $35,757 $1,606,322812880 MERCER COUNTY STATE BANK ............................................................................. $0 $35,741 $2,021,941 $35,741 $2,021,941828303 M-C FEDERAL CREDIT UNION ............................................................................... $0 $35,728 $1,741,233 $35,728 $1,741,233810721 FIRSTBANK SOUTHWEST ........................................................................................ $0 $35,597 $1,828,345 $35,597 $1,828,345828478 ASSOCIATED BANK NA .......................................................................................... $0 $35,572 $2,224,382 $35,572 $2,224,382810895 HERRING BANK ..................................................................................................... $0 $35,421 $16,250 $35,421 $16,250827597 COMMUNITY CREDIT UNION .................................................................................. $0 $35,320 $1,653,842 $35,320 $1,653,842821806 WASHINGTON STATE EMPLOYEES CU .................................................................... $0 $35,045 $1,840,699 $35,045 $1,840,699823730 FREED-HARDEMAN UNIVERSITY ............................................................................ $0 $34,988 $34,988 $0807779 GHS FEDERAL CREDIT UNION ............................................................................... $0 $34,916 $1,434,962 $34,916 $1,434,962834100 ZIONS FNB ELT NELNET ACADEMIC SVCS ............................................................ $0 $34,706 $123,341 $34,706 $123,341888887 SLM ECFC ............................................................................................................. $0 $34,630 $2,605,673 $34,630 $2,605,673

120

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

812095 PARAGON FEDERAL CREDIT UNION ....................................................................... $0 $34,471 $2,539,160 $34,471 $2,539,160830791 JORDAN CREDIT UNION ......................................................................................... $0 $34,453 $1,496,461 $34,453 $1,496,461806757 BANK OF KIRKSVILLE ............................................................................................ $0 $34,345 $860,909 $34,345 $860,909800305 REGIONS BANK ...................................................................................................... $0 $33,989 $235,034 $33,989 $235,034814096 ACHIEVA CREDIT UNION ........................................................................................ $0 $33,977 $1,838 $33,977 $1,838826947 NATIONAL CITY BANK MI-IL .................................................................................. $0 $33,865 $1,965,898 $33,865 $1,965,898819514 FIRST UNITED BANK & TRUST CO ........................................................................ $0 $33,746 $1,481,200 $33,746 $1,481,200813373 PP&L G O L D CREDIT UNION .............................................................................. $0 $33,664 $1,161,214 $33,664 $1,161,214832883 K OF C FEDERAL CREDIT UNION .......................................................................... $0 $33,439 $1,317,788 $33,439 $1,317,788811959 NATIONAL EXCHANGE BANK & TRUST .................................................................. $0 $33,413 $1,640,696 $33,413 $1,640,696831413 PARKER COMMUNITY CREDIT UNION .................................................................... $0 $33,288 $1,561,599 $33,288 $1,561,599822239 COMPASS BANK .................................................................................................... $0 $33,204 $2,316,384 $33,204 $2,316,384833309 ARMSTRONG BANK ................................................................................................ $0 $33,188 $0 $33,188 $0815727 FIRST PREMIER BANK ........................................................................................... $0 $33,012 $1,529,118 $33,012 $1,529,118828949 CBW SCHOOLS FEDERAL CREDIT UNION .............................................................. $0 $33,006 $1,401,793 $33,006 $1,401,793828718 ALLIANCE BANK ..................................................................................................... $0 $32,835 $1,721,547 $32,835 $1,721,547829158 WEBER STATE FEDERAL CREDIT UNION ............................................................... $0 $32,716 $14,125 $32,716 $14,125832729 BUTLER ARMCO EMPLOYEES C U ......................................................................... $0 $32,679 $1,744,097 $32,679 $1,744,097820174 DUPONT COMMUNITY CU ...................................................................................... $0 $32,653 $1,895,232 $32,653 $1,895,232824905 UNIVERSAL 1 CREDIT UNION INC ......................................................................... $0 $32,628 $1,500,009 $32,628 $1,500,009833938 FIFTH THIRD ELT EDUCATION FUNDING C ............................................................ $0 $32,504 $32,504 $0827656 LANDMARK CREDIT UNION .................................................................................... $0 $32,263 $1,984,079 $32,263 $1,984,079833051 GREAT VALLEY SVNGS BNK % FULTON BNK ........................................................ $0 $31,980 $1,158,496 $31,980 $1,158,496808426 FREMONT NATIONAL BANK & TRUST CO .............................................................. $0 $31,927 $2,632 $31,927 $2,632834047 UNIVERSITY OF NORTHERN COLORADO ................................................................ $0 $31,705 $31,705 $0804339 BALDWIN STATE BANK .......................................................................................... $0 $31,625 $31,625 $0832943 FRANKLIN JOHNSTOWN FCU .................................................................................. $0 $31,581 $1,406,264 $31,581 $1,406,264812886 MUNCY BANK AND TRUST COMPANY .................................................................... $0 $31,564 $1,967,673 $31,564 $1,967,673832286 ACMG FEDERAL CREDIT UNION ............................................................................ $0 $31,550 $1,063,183 $31,550 $1,063,183833953 UNION BANK ELT CHELA EDUCATIONAL FU .......................................................... $0 $31,533 $3,681,110 $31,533 $3,681,110823021 PENN STATE FEDERAL CREDIT UNION .................................................................. $0 $31,510 $1,139,364 $31,510 $1,139,364826492 CCSD FEDERAL CREDIT UNION ............................................................................. $0 $31,240 $1,948,948 $31,240 $1,948,948818590 JPMORGAN CHASE BANK NA ................................................................................. $0 $31,175 $2,539,066 $31,175 $2,539,066

121

834212 CALIFORNIA BAPTIST UNIVERSITY ......................................................................... $0 $31,129 $31,129 $0831703 CO-OP CREDIT UNION OF MONTEVIDEO ............................................................... $0 $31,058 $1,231,771 $31,058 $1,231,771831923 POINTBANK ............................................................................................................ $0 $30,975 $1,530,261 $30,975 $1,530,261820200 TOOELE FEDERAL CREDIT UNION .......................................................................... $0 $30,860 $1,599,187 $30,860 $1,599,187827610 STANFORD UNIVERSITY ......................................................................................... $0 $30,787 $30,787 $0823508 ST MARY’S UNIVERSITY ........................................................................................ $0 $30,663 $8,158 $30,663 $8,158826185 NEW CUMBERLAND FEDERAL CREDIT UNION ....................................................... $0 $30,630 $1,184,811 $30,630 $1,184,811828911 PALCO FEDERAL CREDIT UNION ........................................................................... $0 $30,626 $1,362,075 $30,626 $1,362,075818596 METABANK ............................................................................................................. $0 $30,601 $1,483,266 $30,601 $1,483,266829414 HARBOR CREDIT UNION ........................................................................................ $0 $30,528 $1,337,742 $30,528 $1,337,742833489 ERIE GENERAL ELECTRIC EMP FCU ...................................................................... $0 $30,197 $1,813,558 $30,197 $1,813,558832086 GENESEE CO-OP FEDERAL CREDIT UNION ........................................................... $0 $30,020 $1,136,430 $30,020 $1,136,430832887 MARSHFIELD MEDICAL CENTER CREDIT UN ......................................................... $0 $30,005 $1,165,850 $30,005 $1,165,850832201 GREAT RIVER FEDERAL CREDIT UNION ................................................................ $0 $29,966 $1,800,187 $29,966 $1,800,187820393 TIER ONE BANK ..................................................................................................... $0 $29,934 $24,063 $29,934 $24,063810458 FIRST BANK & TRUST ........................................................................................... $0 $29,911 $0 $29,911 $0828582 CROSS VALLEY FCU .............................................................................................. $0 $29,862 $1,724,511 $29,862 $1,724,511824856 MID-KANSAS CREDIT UNION ................................................................................. $0 $29,641 $949,172 $29,641 $949,172834192 DEUTSCHE BANK ELT STUDENT CAP CORP .......................................................... $0 $29,465 $3,018,525 $29,465 $3,018,525826986 VANTAGE CU ......................................................................................................... $0 $29,253 $1,114,244 $29,253 $1,114,244812773 MOBILOIL FCU ....................................................................................................... $0 $29,076 $1,499,754 $29,076 $1,499,754828785 CREDIT UNION OF DENVER ................................................................................... $0 $28,952 $1,392,911 $28,952 $1,392,911816027 PARKVALE SAVINGS ASSN ..................................................................................... $0 $28,798 $9,832 $28,798 $9,832805069 JPMORGAN CHASE BANK NA ................................................................................. $0 $28,794 $0 $28,794 $0806658 CLEVELAND STATE BANK ...................................................................................... $0 $28,725 $120,645 $28,725 $120,645831156 ADVANTAGE CREDIT UNION ................................................................................... $0 $28,687 $1,395,023 $28,687 $1,395,023832948 PARKVIEW COMMUNITY FCU ................................................................................. $0 $28,650 $1,080,548 $28,650 $1,080,548810617 FIRST FARMERS & MERCHANTS NA ...................................................................... $0 $28,596 $1,174,334 $28,596 $1,174,334820280 BENCHMARK FEDERAL CU .................................................................................... $0 $28,582 $1,296,006 $28,582 $1,296,006828936 FREEDOM UNITED FCU .......................................................................................... $0 $28,544 $1,004,820 $28,544 $1,004,820809110 CORNERSTONE BANK ............................................................................................ $0 $28,365 $1,316,719 $28,365 $1,316,719828496 KENNEBEC SAVINGS BANK .................................................................................... $0 $28,140 $1,413,423 $28,140 $1,413,423812555 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $28,042 $799,412 $28,042 $799,412830336 MN VALLEY FEDERAL CREDIT UNION .................................................................... $0 $27,940 $1,089,340 $27,940 $1,089,340827116 SLF OF IDAHO MARKETING ASSN INC ................................................................... $20,190 $0 $7,671 $1,944,643 $27,861 $1,944,643811717 US BANK NA .......................................................................................................... $0 $27,639 $719,148 $27,639 $719,148808316 HERITAGE BANK .................................................................................................... $0 $27,621 $1,162,163 $27,621 $1,162,163834035 CITY BANK ............................................................................................................. $0 $27,505 $51,533 $27,505 $51,533834198 CHICAGO SCHOOL OF PROF PSYCHOLOGY ........................................................... $0 $27,299 $8,645 $27,299 $8,645803463 JPMORGAN CHASE BANK NA ................................................................................. $0 $27,066 $151,671 $27,066 $151,671

122

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

820808 CENTRIS FEDERAL CREDIT UNION ........................................................................ $0 $27,057 $1,656,273 $27,057 $1,656,273808260 FIRST NATIONAL BANK & TRUST COMPANY .......................................................... $0 $26,795 $1,040,804 $26,795 $1,040,804833262 NAVIGATOR CREDIT UNION ................................................................................... $0 $26,757 $1,421,227 $26,757 $1,421,227825116 BELLCO FEDERAL CREDIT UNION ......................................................................... $0 $26,744 $1,058,589 $26,744 $1,058,589833501 WELLS FARGO BNK ELT NHELP I INC ................................................................... $0 $26,734 $2,128,832 $26,734 $2,128,832832499 WINSLOW COMMUNITY FCU .................................................................................. $0 $26,658 $1,085,735 $26,658 $1,085,735804866 BANK MIDWEST N A .............................................................................................. $0 $26,643 $804,689 $26,643 $804,689820181 BEST ADVANTAGE CREDIT UNION ......................................................................... $0 $26,444 $1,246,652 $26,444 $1,246,652834088 US BANK ELT BOSQUE HEA INC ........................................................................... $0 $26,260 $3,237,662 $26,260 $3,237,662830538 DANE COUNTY CREDIT UNION .............................................................................. $0 $25,873 $850,372 $25,873 $850,372823129 LISTERHILL CREDIT UNION .................................................................................... $0 $25,846 $1,790,801 $25,846 $1,790,801828025 AMERICAN FEDERAL SAVINGS BANK ..................................................................... $0 $25,827 $937,917 $25,827 $937,917832817 HOPEWELL JOINT SCHOOL EMP FCU ..................................................................... $0 $25,826 $744,724 $25,826 $744,724807197 FIRST INTERNATIONAL BANK ................................................................................. $0 $25,748 $1,264,243 $25,748 $1,264,243828997 ROCKY MOUNTAIN CREDIT UNION ........................................................................ $0 $25,699 $1,039,848 $25,699 $1,039,848806651 THE CITIZENS BANK OF PHILADELPHIA ................................................................. $0 $25,649 $5,375 $25,649 $5,375822475 PEOPLES STATE BANK ........................................................................................... $0 $25,393 $0 $25,393 $0830922 SHEBOYGAN AREA CREDIT UNION ........................................................................ $0 $25,386 $991,714 $25,386 $991,714809342 CB GROVE CITY FCU ............................................................................................. $0 $25,189 $923,953 $25,189 $923,953807744 ADIRONDACK TRUST COMPANY ............................................................................. $0 $25,118 $905,001 $25,118 $905,001829676 SERVU FCU ........................................................................................................... $0 $25,070 $1,514,840 $25,070 $1,514,840831520 GARDINER FCU ...................................................................................................... $0 $25,006 $909,794 $25,006 $909,794833302 BANK OF THE WEST .............................................................................................. $0 $24,955 $902,654 $24,955 $902,654821013 FORT HOOD NATIONAL BANK ................................................................................ $0 $24,925 $1,557,917 $24,925 $1,557,917808972 ALVA STATE BANK & TRUST CO ........................................................................... $0 $24,865 $900,057 $24,865 $900,057828545 HOME FEDERAL SAVINGS AND LOAN ASSOC ........................................................ $0 $24,750 $55,248 $24,750 $55,248833276 FRIONA STATE BANK ............................................................................................. $0 $24,656 $1,095,599 $24,656 $1,095,599828877 BERKS COMMUNITY FCU ....................................................................................... $0 $24,653 $1,157,587 $24,653 $1,157,587829088 N.E.W. CREDIT UNION ........................................................................................... $0 $24,443 $1,042,301 $24,443 $1,042,301821449 HAGERSTOWN TRUST COMPANY ........................................................................... $0 $24,282 $852,776 $24,282 $852,776832724 PITTSBURGH CENTRAL FCU .................................................................................. $0 $24,257 $752,918 $24,257 $752,918828090 FIRST NAT’L BANK OF PALMERTON ....................................................................... $0 $24,246 $1,351,974 $24,246 $1,351,974832241 SALT LAKE CITY CU .............................................................................................. $0 $24,134 $1,275,179 $24,134 $1,275,179

123

823065 CREIGHTON UNIVERSITY ....................................................................................... $0 $23,924 $13,500 $23,924 $13,500826319 BVA FEDERAL CREDIT UNION ............................................................................... $0 $23,900 $1,067,506 $23,900 $1,067,506832262 NEWPORT NEWS SHIPBUILDING ECU .................................................................... $0 $23,779 $1,258,057 $23,779 $1,258,057829174 CALIFORNIA BANK & TRUST C/O ZIONS B ............................................................ $0 $23,756 $247,329 $23,756 $247,329824983 CINFED EMPLOYEES FEDERAL CREDIT UNI .......................................................... $0 $23,694 $1,511,175 $23,694 $1,511,175834161 PHILIPS GRADUATE INSTITUTE .............................................................................. $0 $23,666 $23,666 $0821973 FIVE COUNTY CREDIT UNION ................................................................................ $0 $23,591 $975,508 $23,591 $975,508833189 BANK OF ARKANSAS NA ........................................................................................ $0 $23,482 $1,005,453 $23,482 $1,005,453832722 JESSOP EMPLOYEES FCU ...................................................................................... $0 $23,297 $725,246 $23,297 $725,246832916 UFCW FCU ............................................................................................................. $0 $23,177 $23,177 $0819105 CITIZENS BANK OF MUKWONAGO .......................................................................... $0 $23,138 $1,433,818 $23,138 $1,433,818806952 FARMERS STATE BANK .......................................................................................... $0 $22,923 $959,175 $22,923 $959,175830332 RIVERWOOD MARITIME CU .................................................................................... $0 $22,919 $1,057,356 $22,919 $1,057,356809087 CITIZENS SECURITY BANK & TRUST CO ............................................................... $0 $22,916 $926,609 $22,916 $926,609830100 UNITED EDUCATORS CREDIT UNION ..................................................................... $0 $22,801 $819,252 $22,801 $819,252803538 JPMORGAN CHASE BANK NA ................................................................................. $0 $22,553 $18,500 $22,553 $18,500818505 BANK OF PRAIRIE DU SAC .................................................................................... $0 $22,473 $1,211,064 $22,473 $1,211,064807838 BANK OF NEW YORK ............................................................................................. $0 $22,286 $0 $22,286 $0834190 LOYOLA UNIVERSITY .............................................................................................. $0 $22,212 $22,212 $0819253 SUPERIOR CHOICE CREDIT UNION ........................................................................ $0 $22,141 $1,052,959 $22,141 $1,052,959830510 FIRST ALLIANCE CREDIT UNION ............................................................................ $0 $21,958 $762,093 $21,958 $762,093809547 FIRST NATL BK PORT ALLEGANY ........................................................................... $0 $21,918 $1,366,808 $21,918 $1,366,808827096 FIRST NATIONAL COMMUNITY BANK ..................................................................... $0 $21,882 $1,064,162 $21,882 $1,064,162828338 FORT COMMUNITY CREDIT UNION ........................................................................ $0 $21,879 $990,372 $21,879 $990,372816228 ROBINS FEDERAL CREDIT UNION .......................................................................... $0 $21,777 $1,096,680 $21,777 $1,096,680822366 PINNACLE BANK OF PAPILLION ............................................................................. $0 $21,698 $3,338 $21,698 $3,338831394 OAKDALE CREDIT UNION ....................................................................................... $0 $21,515 $937,522 $21,515 $937,522821497 AMERICAN PRIDE CREDIT UNION .......................................................................... $0 $21,410 $978,611 $21,410 $978,611828082 WESTERN COOPERATIVE CREDIT UNION ............................................................... $0 $21,390 $1,162,753 $21,390 $1,162,753813853 FIRST NATIONAL BANK OF HUDSON ...................................................................... $0 $21,386 $1,221,471 $21,386 $1,221,471833058 MEADVILLE AREA FCU ........................................................................................... $0 $21,341 $1,023,437 $21,341 $1,023,437831269 JP MORGAN CHASE BANK ..................................................................................... $0 $21,300 $33,041 $21,300 $33,041827751 BADGER GLOBE CREDIT UNION ............................................................................ $0 $21,117 $855,334 $21,117 $855,334806959 ROCKY MOUNTAIN BANK ....................................................................................... $0 $21,111 $1,017,047 $21,111 $1,017,047832823 FRICK TRI COUNTY FCU ........................................................................................ $0 $21,070 $735,849 $21,070 $735,849830935 ACADIA FCU .......................................................................................................... $0 $21,048 $1,232,773 $21,048 $1,232,773832202 CITIZENS COMMUNITY CU ..................................................................................... $0 $20,969 $971,029 $20,969 $971,029831870 CITIZENS BANK OF EDMOND ................................................................................. $0 $20,953 $1,844 $20,953 $1,844828956 WEST PENN PNP FCU ............................................................................................ $0 $20,904 $855,561 $20,904 $855,561832124 ASSOCIATED SCHOOL EMPLOYEES CREDIT ........................................................... $0 $20,784 $814,387 $20,784 $814,387

124

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

827145 MID AMERICA BANK FSB ...................................................................................... $0 $20,752 $86,247 $20,752 $86,247833646 FIRST FINANCIAL OF S ARKANSAS ........................................................................ $0 $20,722 $816,951 $20,722 $816,951828463 MARQUETTE SAVINGS ASSOCIATION ..................................................................... $0 $20,695 $1,157,800 $20,695 $1,157,800832675 ERIE TIMES EMPLOYEES FCU ............................................................................... $0 $20,504 $636,022 $20,504 $636,022832540 TRUMARK FINANCIAL CU ....................................................................................... $0 $20,493 $1,273,821 $20,493 $1,273,821828227 CONCHO EDUCATORS FEDERAL CREDIT UN ......................................................... $0 $20,463 $898,061 $20,463 $898,061820680 RANDOLPH-BROOKS FEDERAL CREDIT UNIO ........................................................ $0 $20,422 $0 $20,422 $0827567 FIRST STATE BANK KEENE INC ............................................................................. $0 $20,412 $738,267 $20,412 $738,267828855 EVERGREEN CREDIT UNION .................................................................................. $0 $20,349 $844,821 $20,349 $844,821834134 US BANK ELT XAVIER UNIVERSITY ........................................................................ $0 $20,347 $0 $20,347 $0809420 COUNTY NATIONAL BANK ...................................................................................... $0 $20,287 $108,291 $20,287 $108,291825602 RIPCO CREDIT UNION ........................................................................................... $0 $20,239 $902,369 $20,239 $902,369821921 NORWIN TEACHERS FEDERAL CREDIT UN ............................................................ $0 $20,237 $807,699 $20,237 $807,699832617 CLARION UNIVERSITY FCU .................................................................................... $0 $20,214 $819,905 $20,214 $819,905817895 MONTANA FEDERAL CREDIT UNION ...................................................................... $0 $20,103 $686,971 $20,103 $686,971805725 CPORT CU ............................................................................................................. $0 $19,973 $1,265,728 $19,973 $1,265,728821362 TEXAS DOW EMPLOYEES CREDIT UNION .............................................................. $0 $19,902 $587,437 $19,902 $587,437833359 BCM FEDERAL CREDIT UNION .............................................................................. $0 $19,883 $714,057 $19,883 $714,057805815 WINTHROP AREA FCU ............................................................................................ $0 $19,680 $703,486 $19,680 $703,486807857 ESL FEDERAL CREDIT UNION ................................................................................ $0 $19,661 $1,637,311 $19,661 $1,637,311833093 BANK OF NY ELT COLLEGEINVEST ........................................................................ $0 $19,412 $1,531,443 $19,412 $1,531,443827967 CHARTWAY FEDERAL C U ..................................................................................... $0 $19,117 $1,183,428 $19,117 $1,183,428810532 SIOUX FALLS FEDERAL CREDIT UNION ................................................................. $0 $19,091 $903,135 $19,091 $903,135809322 AUTO WORKERS FEDERAL CREDIT UNION ............................................................ $0 $19,079 $1,160,446 $19,079 $1,160,446815901 EVANSVILLE TEACHERS FCU ................................................................................. $0 $19,054 $688,337 $19,054 $688,337804575 COMMERCIAL FEDERAL BANK ............................................................................... $0 $19,050 $19,050 $0831946 CAPITAL ONE NA ................................................................................................... $0 $19,045 $1,286,152 $19,045 $1,286,152815994 MEMBERS ALLIANCE CREDIT UNION ..................................................................... $0 $18,946 $754,334 $18,946 $754,334833077 TCF NATIONAL BANK ............................................................................................. $0 $18,889 $24,100 $18,889 $24,100831484 UNION BANK & TRUST—IHELP ............................................................................. $0 $18,853 $1,019,432 $18,853 $1,019,432831552 KEY BANK NA ........................................................................................................ $0 $18,853 $3,986,596 $18,853 $3,986,596829260 FIRST SOURCE FCU ............................................................................................... $0 $18,821 $894,772 $18,821 $894,772814671 STATEWIDE FEDERAL CREDIT UNION .................................................................... $0 $18,784 $726,684 $18,784 $726,684

125

808170 SIDNEY FEDERAL CREDIT UNION .......................................................................... $0 $18,767 $968,815 $18,767 $968,815823417 CINCO FAMILY FCU ............................................................................................... $0 $18,654 $881,510 $18,654 $881,510833324 WEST TEXAS NATIONAL BANK ............................................................................... $0 $18,564 $918,454 $18,564 $918,454833258 AMERICAN NATIONAL BANK .................................................................................. $0 $18,555 $988,659 $18,555 $988,659830772 STANFORD FCU ..................................................................................................... $0 $18,389 $72,612 $18,389 $72,612833034 FIRST FINANCIAL COMMUNITY CU ........................................................................ $0 $18,360 $937,801 $18,360 $937,801833084 METRO CREDIT UNION .......................................................................................... $0 $18,333 $698,237 $18,333 $698,237811881 FARMERS & MERCHANTS BANK OF TOMAH .......................................................... $0 $18,323 $1,036,415 $18,323 $1,036,415819191 RAINBOW FCU ....................................................................................................... $0 $18,315 $1,102,250 $18,315 $1,102,250813421 NEXTIER BANK ...................................................................................................... $0 $18,179 $14,450 $18,179 $14,450815951 MILLS COUNTY STATE BANK ................................................................................. $0 $18,082 $879,136 $18,082 $879,136812155 FIRST BETHANY BANK ........................................................................................... $0 $18,061 $392,962 $18,061 $392,962832486 ENTRUST FEDERAL CREDIT UNION ....................................................................... $0 $18,057 $750,519 $18,057 $750,519831722 TOWN NORTH NATIONAL BANK .............................................................................. $0 $18,001 $727,977 $18,001 $727,977811613 KITSAP BANK ......................................................................................................... $0 $17,995 $1,078,980 $17,995 $1,078,980828715 LA-TEC CREDIT UNION .......................................................................................... $0 $17,975 $1,164,399 $17,975 $1,164,399830267 MIDWEST COMMUNITY FCU ................................................................................... $0 $17,961 $838,989 $17,961 $838,989808995 FARMERS & MERCHANTS BANK & TRUST CO ...................................................... $0 $17,889 $755,848 $17,889 $755,848819967 SEAWAY NATIONAL BANK ...................................................................................... $0 $17,772 $1,041,034 $17,772 $1,041,034823116 KEARNEY FEDERAL CREDIT UNION ....................................................................... $0 $17,657 $970,447 $17,657 $970,447808028 ASTORIA FEDERAL SAVINGS .................................................................................. $0 $17,500 $14,306 $17,500 $14,306832101 CHOICE 1 FEDERAL CREDIT UNION ...................................................................... $0 $17,499 $961,794 $17,499 $961,794832992 IBEW LOCAL UNION 712 FCU ............................................................................... $0 $17,486 $676,716 $17,486 $676,716830130 BEAR PAW CREDIT UNION .................................................................................... $0 $17,404 $850,677 $17,404 $850,677809025 FIRST NATIONAL BANK & TRUST CO OF M ........................................................... $0 $17,226 $793,039 $17,226 $793,039830809 CAPITAL CREDIT UNION ........................................................................................ $0 $17,206 $915,819 $17,206 $915,819830957 TAYLOR CREDIT UNION ......................................................................................... $0 $17,183 $692,349 $17,183 $692,349833562 PRICE CREDIT UNION ............................................................................................ $0 $17,110 $645,842 $17,110 $645,842818690 BLAIR COUNTY FEDERAL CREDIT UNION .............................................................. $0 $17,106 $1,043,520 $17,106 $1,043,520833596 MARATHON COUNTY EMP CU ................................................................................ $0 $16,984 $533,418 $16,984 $533,418832318 DAKOTA WEST CREDIT UNION ............................................................................... $0 $16,949 $763,396 $16,949 $763,396833316 LUTHERAN CREDIT UNION OF AMERICA ............................................................... $0 $16,936 $495,256 $16,936 $495,256827908 NORTHWEST FEDERAL CREDIT UNION .................................................................. $0 $16,855 $912,357 $16,855 $912,357832415 FREMONT FEDERAL CREDIT UNION ....................................................................... $0 $16,853 $1,058,024 $16,853 $1,058,024826423 NORTHSTAR BANK OF TEXAS ................................................................................ $0 $16,834 $882,340 $16,834 $882,340833114 WINNEBAGO COMMUNITY CU ................................................................................ $0 $16,812 $670,282 $16,812 $670,282809097 FIRST NATIONAL BANK .......................................................................................... $0 $16,754 $0 $16,754 $0833273 DELAWARE NATIONAL BANK/FULTON BANK ........................................................... $0 $16,746 $615,109 $16,746 $615,109833318 FORT DAVIS STATE BANK ...................................................................................... $0 $16,733 $874,972 $16,733 $874,972805090 CAPITAL ONE NA ................................................................................................... $0 $16,725 $0 $16,725 $0

126

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

808732 JPMORGAN CHASE BANK NA ................................................................................. $0 $16,722 $1,345,272 $16,722 $1,345,272807306 UNION STATE BANK ............................................................................................... $0 $16,662 $855,245 $16,662 $855,245833602 WHEATLAND FEDERAL CREDIT UNION ................................................................... $0 $16,581 $543,354 $16,581 $543,354832746 YOUR CHOICE FCU ................................................................................................ $0 $16,571 $762,040 $16,571 $762,040820593 FIRST NATIONAL BANK OF BROWNFIELD ............................................................... $0 $16,564 $1,106,875 $16,564 $1,106,875832861 BUFFALO POSTAL COMMUNITY FCU ...................................................................... $0 $16,546 $710,308 $16,546 $710,308828200 M H E S A C ......................................................................................................... $4,992 $522,781 $11,541 $0 $16,533 $522,781829064 SOUTHWEST STUDENT SERV TRUST WFB EL ........................................................ $16,503 $521,059 $0 $16,503 $521,059812205 LASALLE BANK NA ................................................................................................. $0 $16,500 $3,313 $16,500 $3,313830241 CHRISTIAN COMMUNITY CREDIT UNION ................................................................ $0 $16,430 $694,019 $16,430 $694,019823099 WESBANCO WHEELING .......................................................................................... $0 $16,347 $589,871 $16,347 $589,871828909 MIFFLIN COUNTY SAVINGS BANK .......................................................................... $0 $16,303 $783,434 $16,303 $783,434832959 WAUWATOSA CREDIT UNION ................................................................................. $0 $16,228 $637,808 $16,228 $637,808825240 YS FCU .................................................................................................................. $0 $16,197 $657,001 $16,197 $657,001832438 WESTAR FEDERAL CREDIT UNION ......................................................................... $0 $16,153 $546,867 $16,153 $546,867832035 US BANK NA .......................................................................................................... $0 $16,146 $503,679 $16,146 $503,679807968 GLENS FALLS NATIONAL BANK & TRUST .............................................................. $0 $16,145 $1,917 $16,145 $1,917818819 FIRST SECURITY BANK .......................................................................................... $0 $16,138 $694,585 $16,138 $694,585828841 CITIZENS AND NORTHERN BANK ........................................................................... $0 $16,118 $153,207 $16,118 $153,207806958 FIRST NATIONAL BANK OF MONTANA .................................................................... $0 $16,098 $715,360 $16,098 $715,360813517 FIRST FEDERAL SAVINGS BANK ............................................................................ $0 $16,075 $228,909 $16,075 $228,909833927 A+ FEDERAL CREDIT UNION ................................................................................. $0 $16,005 $976,139 $16,005 $976,139829489 ZIONS FNB ELT NAT’L ED LOANS NETWOR ........................................................... $0 $15,832 $28,180 $15,832 $28,180810454 FIRST DAKOTA NATIONAL BANK ............................................................................ $0 $15,770 $0 $15,770 $0832950 MARATHON ROTHSCHILD CU ................................................................................. $0 $15,740 $547,377 $15,740 $547,377822206 NATIONAL BANK & TRUST OF SYCAMORE ............................................................ $0 $15,739 $4,349 $15,739 $4,349827623 PROSPERA CREDIT UNION .................................................................................... $0 $15,669 $683,141 $15,669 $683,141828479 DAIRYLAND POWER CREDIT UNION ....................................................................... $0 $15,665 $524,443 $15,665 $524,443818130 THE RIVERBANK .................................................................................................... $0 $15,657 $993,685 $15,657 $993,685824305 HORIZONS FEDERAL CREDIT UNION ..................................................................... $0 $15,655 $593,217 $15,655 $593,217832760 ST PIUS TENTH CHURCH FCU ............................................................................... $0 $15,531 $535,232 $15,531 $535,232832768 EDUCATIONAL EMPLOYEES CU .............................................................................. $0 $15,523 $952,090 $15,523 $952,090823888 FIRST LIBERTY FEDERAL CREDIT UNION .............................................................. $0 $15,497 $694,542 $15,497 $694,542

127

833146 GOLDEN RULE COMMUNITY CREDIT UNION .......................................................... $0 $15,417 $778,502 $15,417 $778,502819515 CASCADE CENTRAL CREDIT UNION ....................................................................... $0 $15,415 $356,056 $15,415 $356,056833893 PROVINCIAL BANK ACADEMIC FUNDING GR ......................................................... $0 $15,367 $2,377,871 $15,367 $2,377,871810785 LEGEND BANK ....................................................................................................... $0 $15,338 $788,892 $15,338 $788,892834027 AMERICAN AIRLINES FCU ...................................................................................... $0 $15,332 $713,741 $15,332 $713,741825641 FARMERS BANK OF COOK ..................................................................................... $0 $15,217 $663,924 $15,217 $663,924823761 BULLS EYE CU ...................................................................................................... $0 $15,215 $788,776 $15,215 $788,776804456 EMPORIA STATE BANK & TRUST CO ..................................................................... $0 $15,212 $448 $15,212 $448822312 TEXANS CU ............................................................................................................ $0 $15,210 $683,390 $15,210 $683,390809027 FIRST NATIONAL BANK .......................................................................................... $0 $15,202 $534,400 $15,202 $534,400828812 FORWARD FINANCIAL CU ...................................................................................... $0 $15,202 $762,492 $15,202 $762,492828366 COMMUNITY CREDIT UNION .................................................................................. $0 $15,096 $630,202 $15,096 $630,202805809 STE CROIX REGIONAL FCU .................................................................................... $0 $15,078 $728,340 $15,078 $728,340827619 NE PA COMMUNITY FEDERAL CREDIT UN ............................................................. $0 $14,899 $623,180 $14,899 $623,180813376 COPPER AND GLASS FCU ...................................................................................... $0 $14,895 $480,134 $14,895 $480,134830511 CAPITOL FEDERAL S&L ASSC ................................................................................ $0 $14,764 $3,312 $14,764 $3,312832842 TOWER CREDIT UNION .......................................................................................... $0 $14,743 $524,634 $14,743 $524,634832407 BUFFALO METROPOLITAN FCU .............................................................................. $0 $14,654 $613,974 $14,654 $613,974827616 TOMAH AREA CREDIT UNION ................................................................................ $0 $14,650 $969,373 $14,650 $969,373811884 FARMERS & MERCHANTS UNION BANK ................................................................ $0 $14,640 $604,787 $14,640 $604,787829928 AFFINITY PLUS CREDIT UNION .............................................................................. $0 $14,593 $668,361 $14,593 $668,361818869 BANK OF ELMWOOD .............................................................................................. $0 $14,563 $885,945 $14,563 $885,945818128 OOSTBURG STATE BANK ....................................................................................... $0 $14,543 $848,084 $14,543 $848,084829512 GPO FEDERAL CREDIT UNION ............................................................................... $0 $14,430 $657,001 $14,430 $657,001831652 THE BANKERS BANK ............................................................................................. $0 $14,399 $542,396 $14,399 $542,396833132 IRVIN WORKS FCU ................................................................................................. $0 $14,387 $532,470 $14,387 $532,470833460 OKLAHOMA EMPLOYEES CREDIT UNION ................................................................ $0 $14,375 $368,753 $14,375 $368,753833902 PACIFIC COLLEGE OF ORIENTAL MEDICIN ............................................................ $0 $14,373 $14,373 $0829800 HIGHMARK FEDERAL CREDIT UNION ..................................................................... $0 $14,344 $628,286 $14,344 $628,286818085 JACKSON COUNTY BANK ....................................................................................... $0 $14,263 $819,378 $14,263 $819,378832390 ADDISON AVENUE FCU .......................................................................................... $0 $14,246 $599,946 $14,246 $599,946822553 AMERICAN BANK ................................................................................................... $0 $14,213 $679,473 $14,213 $679,473832807 SUNMARK FEDERAL CREDIT UNION ...................................................................... $0 $14,096 $965,331 $14,096 $965,331810432 DACOTAH BANK ..................................................................................................... $0 $14,091 $6,625 $14,091 $6,625821154 PHELPS COUNTY BANK ......................................................................................... $0 $14,086 $551,101 $14,086 $551,101809100 COPPERMARK BANK .............................................................................................. $0 $14,060 $487,592 $14,060 $487,592802759 OAK BROOK BANK ................................................................................................. $0 $14,045 $901,359 $14,045 $901,359824047 A-K VALLEY FEDERAL CREDIT UNION ................................................................... $0 $14,032 $899,133 $14,032 $899,133834033 FORT SILL FCU ...................................................................................................... $0 $14,028 $776,198 $14,028 $776,198832487 ONTARIO SHORES FEDERAL CREDIT UNION .......................................................... $0 $14,012 $540,371 $14,012 $540,371

128

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833463 HEMPFIELD AREA FCU .......................................................................................... $0 $13,999 $398,027 $13,999 $398,027823827 HEARTLAND CREDIT UNION ................................................................................... $0 $13,997 $40,034 $13,997 $40,034813471 HANSCOM FEDERAL CREDIT UNION ...................................................................... $0 $13,996 $884,401 $13,996 $884,401828555 EDUCATORS CREDIT UNION .................................................................................. $0 $13,986 $893,931 $13,986 $893,931832727 UNIV OF SOUTHERN MISS CU ............................................................................... $0 $13,972 $789,341 $13,972 $789,341833352 COMMUNITY BANK—MISSOULA INC ..................................................................... $0 $13,959 $13,959 $0832676 MERIT FEDERAL CREDIT UNION ............................................................................ $0 $13,931 $0 $13,931 $0815854 JP MORGAN CHASE BANK ..................................................................................... $0 $13,798 $0 $13,798 $0828837 WEST-AIRCOMM FCU ............................................................................................. $0 $13,794 $986,452 $13,794 $986,452822234 ALTOONA VA HOSPITAL FCU .................................................................................. $0 $13,780 $547,664 $13,780 $547,664832848 NORTH DAKOTA AIR NATIONAL GUARD CU ........................................................... $0 $13,697 $475,557 $13,697 $475,557811958 NATIONAL BANK OF WAUPUN ................................................................................ $0 $13,673 $934,162 $13,673 $934,162810436 GREAT WESTERN BANK ......................................................................................... $0 $13,665 $14,999 $13,665 $14,999828546 LIFETIME CREDIT UNION ....................................................................................... $0 $13,522 $544,327 $13,522 $544,327813476 MASSBANK ............................................................................................................ $0 $13,510 $672,772 $13,510 $672,772819855 SOUTHPOINT FEDERAL CREDIT UNION .................................................................. $0 $13,506 $671,993 $13,506 $671,993832105 NIAGARA COUNTY FCU .......................................................................................... $0 $13,471 $596,774 $13,471 $596,774818089 DENMARK STATE BANK ......................................................................................... $0 $13,452 $639,884 $13,452 $639,884827531 GREAT FALLS TEACHERS FEDERAL CU ................................................................. $0 $13,408 $624,041 $13,408 $624,041833633 BROKAW CREDIT UNION ........................................................................................ $0 $13,383 $706,315 $13,383 $706,315824824 NORTH MILWAUKEE STATE BANK .......................................................................... $0 $13,369 $839,504 $13,369 $839,504816177 HERITAGEBANK OF THE SOUTH ............................................................................. $0 $13,358 $791,861 $13,358 $791,861810798 INTERNATIONAL BANK OF COMMERCE-EAGL ........................................................ $0 $13,336 $617,795 $13,336 $617,795832648 FIRST CAPITAL CREDIT UNION .............................................................................. $0 $13,331 $548,304 $13,331 $548,304826495 CORNERSTONE FCU .............................................................................................. $0 $13,319 $402,036 $13,319 $402,036833167 GOVERNMENTAL EMPLOYEES CU .......................................................................... $0 $13,268 $585,049 $13,268 $585,049821925 FOX VALLEY SAVINGS BANK .................................................................................. $0 $13,256 $718,786 $13,256 $718,786832718 N B A CREDIT UNION ............................................................................................ $0 $13,199 $471,101 $13,199 $471,101808923 NATIONAL CITY BANK ............................................................................................ $0 $13,157 $37,734 $13,157 $37,734832711 CATHOLIC FAMILY FCU .......................................................................................... $0 $13,122 $389,400 $13,122 $389,400833931 EAST CENTRAL CU ................................................................................................ $0 $13,106 $13,106 $0828714 FIRST AMERICAN CREDIT UNION .......................................................................... $0 $13,093 $630,916 $13,093 $630,916821916 KEYSTONE UNITED METHODIST FCU ..................................................................... $0 $13,067 $692,585 $13,067 $692,585

129

831848 KEY BANK NA ........................................................................................................ $0 $12,998 $4,372 $12,998 $4,372817284 EDCO COMMUNITY CREDIT UNION ........................................................................ $0 $12,954 $699,765 $12,954 $699,765817551 CAMERON STATE BANK ......................................................................................... $0 $12,921 $0 $12,921 $0828906 P G &W EMPLOYEES F C U .................................................................................. $0 $12,916 $602,838 $12,916 $602,838805782 NEW DIMENSIONS FCU .......................................................................................... $0 $12,730 $513,146 $12,730 $513,146823343 FIRST BANK FINANCIAL CENTER ........................................................................... $0 $12,729 $807,068 $12,729 $807,068824714 TCF NATIONAL BANK ............................................................................................. $0 $12,719 $1,183,815 $12,719 $1,183,815822814 MON VALLEY COMMUNITY FEDERAL CREDIT ........................................................ $0 $12,702 $657,034 $12,702 $657,034813916 SECURITY STATE BANK & TRUST .......................................................................... $0 $12,660 $475,583 $12,660 $475,583832290 TRUWEST CU ......................................................................................................... $0 $12,556 $634,326 $12,556 $634,326801894 WELLS FARGO EDUCATION FIN SVCS .................................................................... $0 $12,553 $893,589 $12,553 $893,589830999 INDIANHEAD CREDIT UNION .................................................................................. $0 $12,514 $477,487 $12,514 $477,487823384 COASTAL COMMUNITY & TEACHERS CU ............................................................... $0 $12,486 $0 $12,486 $0819526 WESTERN STATE BANK .......................................................................................... $0 $12,469 $621,279 $12,469 $621,279828768 EAGLE BK & TRUST CO OF JEFF CO ..................................................................... $0 $12,421 $521,175 $12,421 $521,175830924 PEOPLES CHOICE CREDIT UNION .......................................................................... $0 $12,356 $440,758 $12,356 $440,758821067 MECHANICS SAVINGS BANK .................................................................................. $0 $12,354 $825,557 $12,354 $825,557816026 AEDC FEDERAL CREDIT UNION ............................................................................. $0 $12,334 $796,647 $12,334 $796,647833805 REDSTONE FCU ..................................................................................................... $0 $12,268 $2,626 $12,268 $2,626822480 SKY BANK .............................................................................................................. $0 $12,245 $722,286 $12,245 $722,286825633 UNITED PRAIRIE BANK-SLAYTON ........................................................................... $0 $12,205 $630,948 $12,205 $630,948817409 MONROE COUNTY COMMUNITY CREDIT UNIO ....................................................... $0 $12,161 $770,903 $12,161 $770,903823247 BFG FEDERAL CREDIT UNION ............................................................................... $0 $12,083 $407,329 $12,083 $407,329832650 AMERICHOICE FCU ................................................................................................ $0 $12,034 $648,173 $12,034 $648,173806778 CABOOL STATE BANK ............................................................................................ $0 $12,019 $428,993 $12,019 $428,993812355 TELCO TRIAD CREDIT UNION ................................................................................ $0 $12,000 $662,958 $12,000 $662,958832630 OUR COMMUNITY CREDIT UNION .......................................................................... $0 $11,979 $611,476 $11,979 $611,476828948 1ST CHOICE COMMUNITY FCU .............................................................................. $0 $11,881 $676,006 $11,881 $676,006818219 AMERICAN BANK & TRUST WISCONSIN ................................................................ $0 $11,870 $749,996 $11,870 $749,996809231 FIRST TECHNOLOGY CREDIT UNION ...................................................................... $0 $11,839 $562,996 $11,839 $562,996827117 RICHLAND COUNTY BANK ..................................................................................... $0 $11,825 $748,104 $11,825 $748,104833169 FIRST WESTERN BANK OF STURGIS ...................................................................... $0 $11,812 $0 $11,812 $0827196 STATE DEPARTMENT FCU ...................................................................................... $0 $11,807 $1,169,961 $11,807 $1,169,961830547 CLS-NATIONAL CITY BANK OF PA ......................................................................... $0 $11,805 $48,375 $11,805 $48,375828887 FIRST COMMONWEALTH FCU ................................................................................. $0 $11,696 $616,992 $11,696 $616,992810226 VANTAGE TRUST FCU ............................................................................................ $0 $11,691 $621,030 $11,691 $621,030832404 ALCO FEDERAL CREDIT UNION ............................................................................. $0 $11,685 $561,269 $11,685 $561,269833866 FIFTH THIRD ELT EIC ............................................................................................ $0 $11,678 $0 $11,678 $0810995 1ST NAT’L BANK OF CANADIAN ............................................................................. $0 $11,662 $39,829 $11,662 $39,829832275 UNIVERSITY OF MICHIGAN CU .............................................................................. $0 $11,656 $800,292 $11,656 $800,292

130

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

832626 LANCASTER RED ROSE CU ................................................................................... $0 $11,618 $365,508 $11,618 $365,508828876 SCIENCE PARK EMPLOYEES C U .......................................................................... $0 $11,598 $683,122 $11,598 $683,122832000 UMB BANK ............................................................................................................ $0 $11,589 $321,826 $11,589 $321,826828477 VANTAGE WEST CREDIT UNION ............................................................................. $0 $11,555 $152,215 $11,555 $152,215813317 MAX FEDERAL CREDIT UNION ............................................................................... $0 $11,535 $914,163 $11,535 $914,163826585 STATE CENTRAL CREDIT UNION ............................................................................ $0 $11,530 $575,446 $11,530 $575,446832090 DALE EMPLOYEES CREDIT UNION ......................................................................... $0 $11,526 $432,767 $11,526 $432,767810479 FIRST STATE BANK ................................................................................................ $0 $11,486 $588,803 $11,486 $588,803832816 Y T W FEDERAL CREDIT UNION ............................................................................ $0 $11,471 $402,612 $11,471 $402,612808441 HASTINGS STATE BANK ......................................................................................... $0 $11,462 $2,062 $11,462 $2,062833038 MEMBERS CHOICE CREDIT UNION ........................................................................ $0 $11,416 $403,254 $11,416 $403,254805152 PEOPLES STATE BANK ........................................................................................... $0 $11,407 $0 $11,407 $0831897 TRI-COUNTY CREDIT UNION .................................................................................. $0 $11,384 $442,115 $11,384 $442,115832116 FIREFIGHTERS COMMUNITY CU ............................................................................. $0 $11,342 $552,994 $11,342 $552,994833306 MINNCO CREDIT UNION ........................................................................................ $0 $11,329 $549,471 $11,329 $549,471833595 NORTHWOODS COMMUNITY CU ............................................................................. $0 $11,327 $580,143 $11,327 $580,143817517 CENTRA CREDIT UNION ......................................................................................... $0 $11,321 $399,460 $11,321 $399,460824411 HURON AREA EDUCATION FEDERAL CREDIT ......................................................... $0 $11,315 $413,882 $11,315 $413,882820231 FIRST NATIONAL BANK AT DARLINGTON ............................................................... $0 $11,299 $605,291 $11,299 $605,291827708 US BANK NA .......................................................................................................... $0 $11,156 $366,196 $11,156 $366,196832292 UNITED CREDIT UNION .......................................................................................... $0 $11,143 $501,102 $11,143 $501,102833609 CLASS ACT FCU .................................................................................................... $0 $11,133 $602,696 $11,133 $602,696816480 GEORGIA TELCO CREDIT UNION ............................................................................ $0 $11,117 $594,665 $11,117 $594,665825153 RIVER VALLEY CREDIT UNION ............................................................................... $0 $11,092 $468,646 $11,092 $468,646832838 CACL FEDERAL CREDIT UNION ............................................................................. $0 $11,077 $11,077 $0832627 MINNESOTA POWER EMPLOYEES CREDIT UN ....................................................... $0 $11,074 $478,116 $11,074 $478,116808335 NEBRASKA ENERGY FCU ....................................................................................... $0 $10,990 $506,622 $10,990 $506,622832705 NESC FEDERAL CREDIT UNION ............................................................................. $0 $10,938 $407,290 $10,938 $407,290832803 TRI-STATE FCU ...................................................................................................... $0 $10,901 $631,594 $10,901 $631,594828580 GREAT MIDWEST BANK S.S.B$0 ............................................................................ $10,871 $579,605 $10,871 $579,605830845 UNO FEDERAL CREDIT UNION ............................................................................... $0 $10,839 $12,274 $10,839 $12,274831595 CUDAHY- SOUTHSHORE CU .................................................................................. $0 $10,816 $357,331 $10,816 $357,331832264 WESTERN DIVISION FCU ........................................................................................ $0 $10,777 $719,934 $10,777 $719,934

131

832063 UNIVERSITY OF NEBRASKA FEDERAL CU .............................................................. $0 $10,774 $458,672 $10,774 $458,672834186 SOUTHERN CALIF INST OF ARCH .......................................................................... $0 $10,743 $0 $10,743 $0824608 WACHOVIA BANK NA ............................................................................................. $0 $10,721 $596,829 $10,721 $596,829832561 NIAGARA’S CHOICE FCU ........................................................................................ $0 $10,715 $430,163 $10,715 $430,163833095 FALCON NATIONAL BANK ....................................................................................... $0 $10,696 $663,303 $10,696 $663,303829911 PCM EMPLOYEES CU ............................................................................................ $0 $10,652 $514,644 $10,652 $514,644831875 AVANTA FEDERAL CREDIT UNION .......................................................................... $0 $10,583 $468,978 $10,583 $468,978832582 SUN FEDERAL CREDIT UNION ............................................................................... $0 $10,561 $578,595 $10,561 $578,595820888 BANK OF BRODHEAD ............................................................................................. $0 $10,490 $639,729 $10,490 $639,729827104 EQUITABLE BANK SSB ........................................................................................... $0 $10,471 $546,383 $10,471 $546,383822440 BAY SHORE CREDIT UNION ................................................................................... $0 $10,467 $622,106 $10,467 $622,106803609 OLD NATIONAL BANK ............................................................................................. $0 $10,450 $81,725 $10,450 $81,725829951 ABERDEEN FEDERAL CREDIT UNION ..................................................................... $0 $10,444 $464,501 $10,444 $464,501832234 WHITEFISH CREDIT UNION .................................................................................... $0 $10,408 $409,907 $10,408 $409,907833204 ONPOINT COMMUNITY CU ..................................................................................... $0 $10,321 $537,242 $10,321 $537,242813419 PEOPLESBANK A CODORUS VALLEY COMPAN ....................................................... $0 $10,248 $405,577 $10,248 $405,577829795 EMORY FEDERAL CREDIT UNION .......................................................................... $0 $10,121 $300,632 $10,121 $300,632817804 MCDOWELL COUNTY NATIONAL BANK ................................................................... $0 $10,117 $638,563 $10,117 $638,563822928 FRANKLIN SAVINGS AND LOAN COMPANY ............................................................. $0 $10,106 $552,893 $10,106 $552,893810536 STATE BANK OF ALCESTER ................................................................................... $0 $10,096 $456,061 $10,096 $456,061826408 CORTRUST BANK ................................................................................................... $0 $10,087 $3,408 $10,087 $3,408829299 WEA CREDIT UNION .............................................................................................. $0 $10,028 $456,288 $10,028 $456,288833047 CORRY JAMESTOWN CREDIT UNION ...................................................................... $0 $9,969 $391,006 $9,969 $391,006827468 BANK OF WASHINGTON ......................................................................................... $0 $9,943 $403,158 $9,943 $403,158822022 CORNHUSKER BANK .............................................................................................. $0 $9,939 $5,132 $9,939 $5,132833625 HEARTLAND CREDIT UNION ................................................................................... $0 $9,920 $371,703 $9,920 $371,703822818 CENTURY HERITAGE FCU ...................................................................................... $0 $9,892 $502,719 $9,892 $502,719833205 UNION BANK & TRUST ELT NELNET ...................................................................... $0 $9,851 $90,432 $9,851 $90,432817864 NORTHEAST ARKANSAS FEDERAL CREDIT U ......................................................... $0 $9,850 $505,080 $9,850 $505,080829994 NORTHERN HILLS FCU .......................................................................................... $0 $9,849 $427,839 $9,849 $427,839826405 SYCAMORE BANK .................................................................................................. $0 $9,840 $290,436 $9,840 $290,436809695 LEBANON VALLEY FARMERS BANK ....................................................................... $0 $9,804 $443,211 $9,804 $443,211809323 WEST BRANCH VALLEY CU ................................................................................... $0 $9,800 $505,049 $9,800 $505,049834179 FIFTH THIRD ELT BUSINESS FIN SOLUTI ............................................................... $0 $9,768 $503,884 $9,768 $503,884833709 ARVEST BANK ........................................................................................................ $0 $9,765 $422,016 $9,765 $422,016833096 KENMORE TEACHERS FEDERAL CREDIT UNI ......................................................... $0 $9,748 $387,611 $9,748 $387,611833469 LAREDO FEDERAL CREDIT UNION ......................................................................... $0 $9,700 $465,764 $9,700 $465,764832314 EDUCATIONAL COMMUNITY CU ............................................................................. $0 $9,673 $487,573 $9,673 $487,573817696 FIRST CHOICE AMERICA COMMUNITY FCU ........................................................... $0 $9,656 $614,202 $9,656 $614,202830525 LASALLE BANK ...................................................................................................... $0 $9,650 $0 $9,650 $0

132

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

832715 UNIVERSITY DR VAH FCU ...................................................................................... $0 $9,620 $363,548 $9,620 $363,548830649 SLM ECFC ............................................................................................................. $0 $9,602 $2,082,578 $9,602 $2,082,578816358 DELTA COMMUNITY CU ......................................................................................... $0 $9,589 $687,865 $9,589 $687,865820694 SACO VALLEY CREDIT UNION ................................................................................ $0 $9,561 $294,945 $9,561 $294,945830513 DETROIT EDISON CREDIT UNION ........................................................................... $0 $9,558 $448,492 $9,558 $448,492807805 M & T BANK EDUCATIONAL LENDING ................................................................... $0 $9,556 $509,632 $9,556 $509,632828142 SCHUYLKILL FEDERAL CREDIT UNION ................................................................... $0 $9,550 $431,465 $9,550 $431,465808018 LAKE SHORE SAVINGS AND LOAN ASSN ............................................................... $0 $9,542 $374,757 $9,542 $374,757810928 FIRST NATIONAL BANK .......................................................................................... $0 $9,530 $1,774 $9,530 $1,774810948 RED RIVER EMPLOYEES FEDERAL CREDIT ........................................................... $0 $9,487 $370,623 $9,487 $370,623832074 GREATER MN CREDIT UNION ................................................................................ $0 $9,485 $451,622 $9,485 $451,622833932 NEW ALLIANCE FCU .............................................................................................. $0 $9,471 $600,302 $9,471 $600,302832741 PRR SOUTH FORK FCU .......................................................................................... $0 $9,468 $424,206 $9,468 $424,206812918 NEW TRIPOLI BANK ............................................................................................... $0 $9,448 $420,129 $9,448 $420,129832148 VIRGINIA UNITED METHODIST CU ......................................................................... $0 $9,439 $329,656 $9,439 $329,656833824 DODGE CENTRAL CREDIT UNION .......................................................................... $0 $9,408 $580,463 $9,408 $580,463814108 REGIONS BANK ...................................................................................................... $0 $9,407 $51,145 $9,407 $51,145834201 US BANK ELT UNIV OF TX TEXAS EXES ................................................................ $0 $9,379 $0 $9,379 $0833480 PRINCIPAL BANK ................................................................................................... $0 $9,363 $243,694 $9,363 $243,694816116 FAA EMPLOYEES CREDIT UNION ........................................................................... $0 $9,297 $561,404 $9,297 $561,404832355 ERIE SHORES CREDIT UNION INC ......................................................................... $0 $9,251 $480,246 $9,251 $480,246821498 TRI VALLEY SERVICE FCU ..................................................................................... $0 $9,233 $340,141 $9,233 $340,141810903 JOURDANTON STATE BANK .................................................................................... $0 $9,209 $545,984 $9,209 $545,984813891 ZIONS BANK (IDAHO FIRST) .................................................................................. $0 $9,184 $46,584 $9,184 $46,584814651 SIOUX EMPIRE FEDERAL CREDIT UNION ............................................................... $0 $9,180 $484,657 $9,180 $484,657826001 WALWORTH STATE BANK ....................................................................................... $0 $9,119 $614,667 $9,119 $614,667832512 BOSSIER FEDERAL CREDIT UNION ........................................................................ $0 $9,118 $345,703 $9,118 $345,703832288 C&G SAVINGS ASSOCIATION ................................................................................. $0 $9,105 $591,563 $9,105 $591,563818246 ARVEST BANK ........................................................................................................ $0 $9,091 $462,649 $9,091 $462,649826679 ELI LILLY FEDERAL CREDIT UNION ....................................................................... $0 $9,051 $284,029 $9,051 $284,029823777 ROSE ROCK BANK ................................................................................................. $0 $9,021 $295,430 $9,021 $295,430814627 COMMERCIAL TRUST COMPANY ............................................................................ $0 $9,001 $320,483 $9,001 $320,483832432 AURORA CREDIT UNION ........................................................................................ $0 $8,980 $400,013 $8,980 $400,013

133

832174 NASSAU FINANCIAL FCU ........................................................................................ $0 $8,958 $514,931 $8,958 $514,931832551 SHAREFAX CREDIT UNION INC .............................................................................. $0 $8,925 $467,982 $8,925 $467,982828836 PHOENIXVILLE FEDERAL SVGS & LOAN ................................................................ $0 $8,858 $444,935 $8,858 $444,935832560 AURORA BURLINGTON CREDIT UNION .................................................................. $0 $8,831 $203,474 $8,831 $203,474833013 UGI EMPLOYEES FCU ............................................................................................ $0 $8,793 $338,081 $8,793 $338,081816098 THE CITIZENS BANK OF CLOVIS ............................................................................ $0 $8,765 $287,537 $8,765 $287,537808237 FIRST NATIONAL BANK & TRUST COMPANY .......................................................... $0 $8,734 $403,027 $8,734 $403,027810225 WILKES BARRE POSTAL FCU ................................................................................. $0 $8,695 $395,172 $8,695 $395,172812950 FIRST NATIONAL BANK OF BERWICK ..................................................................... $0 $8,679 $107,140 $8,679 $107,140816319 ATLANTA POSTAL CREDIT UNION .......................................................................... $0 $8,666 $481,550 $8,666 $481,550832184 SUMMIT CU ........................................................................................................... $0 $8,657 $356,280 $8,657 $356,280834112 US BANK ELT BAYLOR UNIV ALUMNI ASSO .......................................................... $0 $8,630 $0 $8,630 $0828416 UNITED FEDERAL CU ............................................................................................. $0 $8,611 $451,927 $8,611 $451,927833912 MERCER COUNTY COMMUNITY FCU ..................................................................... $0 $8,585 $451,827 $8,585 $451,827811946 LAONA STATE BANK .............................................................................................. $0 $8,573 $512,594 $8,573 $512,594833355 CREDIT UNION NORTHWEST .................................................................................. $0 $8,569 $365,643 $8,569 $365,643831825 INDEPENDENT BANKERS BANK ............................................................................. $0 $8,544 $13,775 $8,544 $13,775832826 MEDICAL AREA FCU .............................................................................................. $0 $8,539 $488,295 $8,539 $488,295832223 MONONA STATE BANK ........................................................................................... $0 $8,530 $479,537 $8,530 $479,537818280 LIBERTY FEDERAL SAVINGS BANK ........................................................................ $0 $8,519 $279,695 $8,519 $279,695832877 RIVER CITY COMMUNITY CREDIT UNION .............................................................. $0 $8,518 $284,466 $8,518 $284,466832075 RICHFIELD BLOOMINGTON CREDIT UNION ............................................................ $0 $8,513 $410,179 $8,513 $410,179823618 ASSOCIATED BANK NA .......................................................................................... $0 $8,498 $8,498 $0833774 XEROX FEDERAL CREDIT UNION ........................................................................... $0 $8,467 $430,040 $8,467 $430,040810468 FIRST SAVINGS BANK ............................................................................................ $0 $8,449 $335,881 $8,449 $335,881830837 UNITED SAVINGS CREDIT UNION ........................................................................... $0 $8,436 $337,699 $8,436 $337,699829825 HARDIN COMMUNITY FEDERAL CREDIT UNI ......................................................... $0 $8,431 $404,470 $8,431 $404,470811513 CITIZENS NATIONAL BANK OF BERKELEY ............................................................. $0 $8,410 $659,200 $8,410 $659,200828024 FIRST COMMUNITY CREDIT UNION ........................................................................ $0 $8,409 $408,297 $8,409 $408,297832935 CY-FAIR FCU ......................................................................................................... $0 $8,381 $392,807 $8,381 $392,807833120 AREA COMMUNITY CREDIT UNION ........................................................................ $0 $8,365 $319,360 $8,365 $319,360827902 STERLING UNITED FCU .......................................................................................... $0 $8,346 $447,058 $8,346 $447,058822189 FIBERGLAS FEDERAL CREDIT UNION .................................................................... $0 $8,329 $418,201 $8,329 $418,201832745 EC & EE EMPLOYEES FCU .................................................................................... $0 $8,288 $310,584 $8,288 $310,584806481 MINNWEST BANK LUVERNE ................................................................................... $0 $8,271 $336,416 $8,271 $336,416827675 DULUTH TEACHERS CREDIT UNION ....................................................................... $0 $8,270 $290,872 $8,270 $290,872804091 IOWA FALLS STATE BANK ...................................................................................... $0 $8,266 $317,723 $8,266 $317,723833507 MERIDIA COMMUNITY FCU .................................................................................... $0 $8,250 $257,927 $8,250 $257,927832091 ST CLOUD FEDERAL CREDIT UNION ...................................................................... $0 $8,235 $529,678 $8,235 $529,678810482 FIRST NATIONAL BANK .......................................................................................... $0 $8,222 $380,656 $8,222 $380,656

134

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

808273 WESTERN HERITAGE CREDIT UNION ..................................................................... $0 $8,212 $394,947 $8,212 $394,947828907 R-S BELLCO FEDERAL CREDIT UNION .................................................................. $0 $8,154 $477,964 $8,154 $477,964816190 DOCO REGIONAL FCU ............................................................................................ $0 $8,145 $527,744 $8,145 $527,744825230 COMERICA BANK ................................................................................................... $0 $8,117 $2,770 $8,117 $2,770809966 CORRY FCU ........................................................................................................... $0 $8,092 $561,707 $8,092 $561,707832350 HEALTHFIRST FCU ................................................................................................. $0 $8,074 $363,998 $8,074 $363,998827348 GUARDIAN CREDIT UNION ..................................................................................... $0 $8,065 $399,109 $8,065 $399,109832868 HERMANTOWN FCU ............................................................................................... $0 $8,033 $335,619 $8,033 $335,619833041 CANTON SCHOOL EFCU ......................................................................................... $0 $8,019 $318,110 $8,019 $318,110832033 UNITED STATES SENATE FEDERAL CREDIT ........................................................... $0 $8,000 $480,967 $8,000 $480,967832433 PRIMEFINANCIAL CU ............................................................................................. $0 $7,979 $523,756 $7,979 $523,756810463 FIRST NATIONAL BANK IN PHILIP .......................................................................... $0 $7,945 $328,838 $7,945 $328,838808425 FREMONT FIRST CENTRAL FEDERAL CREDI .......................................................... $0 $7,923 $349,997 $7,923 $349,997803947 CENTRAL BANK ..................................................................................................... $0 $7,913 $258,947 $7,913 $258,947826004 ORNL FEDERAL CREDIT UNION ............................................................................. $0 $7,883 $10,836 $7,883 $10,836828732 CAPITAL COMMUNICATIONS FEDERAL CRED ......................................................... $0 $7,859 $449,436 $7,859 $449,436833637 NORTHERN COMMUNITIES CU ............................................................................... $0 $7,854 $300,706 $7,854 $300,706831706 PIONEER CU .......................................................................................................... $0 $7,852 $266,611 $7,852 $266,611830720 VAC EMPLOYEES FCU ........................................................................................... $0 $7,796 $362,768 $7,796 $362,768818506 STATE BANK OF ARCADIA ..................................................................................... $0 $7,781 $373,940 $7,781 $373,940820277 DISCOVERY FCU .................................................................................................... $0 $7,772 $505,952 $7,772 $505,952823762 AB CREDIT UNION ................................................................................................. $0 $7,714 $293,216 $7,714 $293,216802814 CITIZENS NATIONAL BANK ..................................................................................... $0 $7,635 $7,635 $0833614 BADGER CREDIT UNION ........................................................................................ $0 $7,630 $321,260 $7,630 $321,260809947 VALLEY FIRST COMM FCU ..................................................................................... $0 $7,627 $7,627 $0817856 THE FIRST NATIONAL BANK AT PARIS ................................................................... $0 $7,625 $264,145 $7,625 $264,145829509 SOUTHWEST RESEARCH CENTER FCU .................................................................. $0 $7,619 $510,161 $7,619 $510,161831535 WYOMING STUDENT LOAN CORP GEN FUND ......................................................... $0 $7,598 $421,547 $7,598 $421,547831301 SOUTHPOINTE CREDIT UNION ............................................................................... $0 $7,576 $223,786 $7,576 $223,786833898 PITTSBURGH POLICE FCU ..................................................................................... $0 $7,571 $404,209 $7,571 $404,209833794 CONE CREDIT UNION ............................................................................................ $0 $7,570 $223,004 $7,570 $223,004832610 HAR-CO MARYLAND FEDERAL CREDIT UNIO ......................................................... $0 $7,560 $390,931 $7,560 $390,931831513 UNIVERSITY OF COLORADO ................................................................................... $0 $7,548 $7,548 $0

135

832584 KEMBA CU ............................................................................................................. $0 $7,533 $7,533 $0819166 JP MORGANCHASE BANK ....................................................................................... $0 $7,519 $12,934 $7,519 $12,934809459 ELDERTON STATE BANK ........................................................................................ $0 $7,515 $558,723 $7,515 $558,723829513 DOT FEDERAL CREDIT UNION ............................................................................... $0 $7,504 $326,642 $7,504 $326,642832343 ABCO FEDERAL CREDIT UNION ............................................................................. $0 $7,489 $544,484 $7,489 $544,484832850 FEDERATED FAMILY CU ......................................................................................... $0 $7,486 $273,721 $7,486 $273,721832454 UNITED BANK OF PHILADELPHIA ........................................................................... $0 $7,479 $509,952 $7,479 $509,952828001 EAST TEXAS PROFESSIONAL CU ............................................................................ $0 $7,467 $363,262 $7,467 $363,262827885 APPLETREE CREDIT UNION ................................................................................... $0 $7,422 $415,169 $7,422 $415,169813574 CUMBERLAND COUNTY FCU .................................................................................. $0 $7,412 $495,002 $7,412 $495,002827066 INNER LAKES FCU ................................................................................................. $0 $7,390 $319,804 $7,390 $319,804829624 ENTERPRISE CREDIT UNION .................................................................................. $0 $7,357 $377,384 $7,357 $377,384832335 GOWANDA AREA FCU ............................................................................................ $0 $7,324 $249,099 $7,324 $249,099832026 OPCS FEDERAL CREDIT UNION ............................................................................. $0 $7,285 $329,218 $7,285 $329,218833628 PEPPERDINE UNIVERSITY ...................................................................................... $0 $7,274 $7,274 $0828851 MUNICIPAL CREDIT UNION .................................................................................... $0 $7,245 $250,732 $7,245 $250,732826322 CINCINNATI INTERAGENCY FEDERAL CRED .......................................................... $0 $7,215 $291,632 $7,215 $291,632832825 WACHOVIA NAT’L BANK DE NA ............................................................................. $0 $7,210 $433,127 $7,210 $433,127820758 SALEM VA MEDICAL CENTER FED CR UNIO ......................................................... $0 $7,199 $586,483 $7,199 $586,483832538 NORTHLAND EDUCATORS FCU .............................................................................. $0 $7,199 $338,258 $7,199 $338,258833118 ELM RIVER CREDIT UNION .................................................................................... $0 $7,194 $290,715 $7,194 $290,715807612 WASHINGTON MUTUAL BANK FA ........................................................................... $0 $7,189 $0 $7,189 $0830294 FIRST COMMUNITY FEDERAL CREDIT UNIO .......................................................... $0 $7,181 $345,426 $7,181 $345,426818220 STATE BANK OF CHILTON ...................................................................................... $0 $7,179 $359,100 $7,179 $359,100819769 PENINSULA FEDERAL CREDIT UNION .................................................................... $0 $7,151 $524,390 $7,151 $524,390832800 FAYETTE FEDERAL EMPLOYEES FCU ..................................................................... $0 $7,151 $322,250 $7,151 $322,250833837 LONE STAR NATIONAL BANK ................................................................................. $0 $7,109 $378,390 $7,109 $378,390829390 SEACOMM FEDERAL CREDIT UNION ...................................................................... $0 $7,105 $577,450 $7,105 $577,450808521 SAC FEDERAL CREDIT UNION ............................................................................... $0 $7,088 $290,088 $7,088 $290,088832059 CHAMPION CREDIT UNION .................................................................................... $0 $7,088 $270,539 $7,088 $270,539832719 BLUE CHIP FCU ..................................................................................................... $0 $7,083 $388,826 $7,083 $388,826832254 CAPITAL TRUST FEDERAL CREDIT UNION ............................................................. $0 $7,028 $276,186 $7,028 $276,186833112 GREATER LATROBE SCHOOLS FCU ....................................................................... $0 $7,016 $192,317 $7,016 $192,317814495 MAQUOKETA STATE BANK ..................................................................................... $0 $6,997 $420,408 $6,997 $420,408832749 TOPMARK FCU ....................................................................................................... $0 $6,995 $202,170 $6,995 $202,170832886 TONAWANDA FCU .................................................................................................. $0 $6,993 $309,159 $6,993 $309,159824046 PA CENTRAL FCU .................................................................................................. $0 $6,984 $326,011 $6,984 $326,011829086 COMMUNITY FCU ................................................................................................... $0 $6,968 $265,612 $6,968 $265,612827711 FIRST SERVICE CU ................................................................................................ $0 $6,952 $252,995 $6,952 $252,995808990 FIRST FIDELITY BANK NA ...................................................................................... $0 $6,942 $0 $6,942 $0

136

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

832846 AUSTIN TELCO FCU ............................................................................................... $0 $6,936 $6,936 $0827802 EDTECH FEDERAL CREDIT UNION ......................................................................... $0 $6,923 $276,209 $6,923 $276,209830555 COMMUNITY BANK ................................................................................................ $0 $6,915 $253,395 $6,915 $253,395819745 SOUND CREDIT UNION .......................................................................................... $0 $6,914 $357,750 $6,914 $357,750824693 FINGER LAKES FEDERAL CREDIT UNION ............................................................... $0 $6,911 $459,472 $6,911 $459,472833660 ULSTER FEDERAL CREDIT UNION .......................................................................... $0 $6,901 $380,999 $6,901 $380,999833905 EASTERN MAINE MED CENTER FCU ...................................................................... $0 $6,889 $591,726 $6,889 $591,726819585 MERIDIAN TRUST FCU ........................................................................................... $0 $6,877 $258,396 $6,877 $258,396812889 FIRST NAT’L BANK OF LILLY ................................................................................. $0 $6,873 $379,926 $6,873 $379,926823524 MILLER ELECTRIC CREDIT UNION ......................................................................... $0 $6,865 $267,937 $6,865 $267,937826396 EMPLOYEES CREDIT UNION .................................................................................. $0 $6,859 $415,350 $6,859 $415,350814465 TEXAS FEDERAL CREDIT UNION ............................................................................ $0 $6,840 $527,361 $6,840 $527,361833781 CAPITAL AREA FCU ............................................................................................... $0 $6,838 $385,891 $6,838 $385,891820274 WESTMORELAND FEDERAL EMP FCU .................................................................... $0 $6,833 $257,138 $6,833 $257,138830320 FIRST NATIONAL BANK .......................................................................................... $0 $6,830 $308,065 $6,830 $308,065825257 KALSEE CREDIT UNION ......................................................................................... $0 $6,827 $295,314 $6,827 $295,314824795 INDEPENDENCE BANK ........................................................................................... $0 $6,824 $252,962 $6,824 $252,962833853 ARKANSAS SUPERIOR FCU .................................................................................... $0 $6,802 $6,802 $0833249 CITY NATIONAL BANK OF TAYLOR ......................................................................... $0 $6,779 $338,057 $6,779 $338,057822870 HOUSTON POLICE FCU .......................................................................................... $0 $6,704 $367,960 $6,704 $367,960833491 BOEING WICHITA CREDIT UNION ........................................................................... $0 $6,696 $389,052 $6,696 $389,052832957 PRINCE GEORGES FCU .......................................................................................... $0 $6,660 $268,005 $6,660 $268,005824432 APPLE FEDERAL CREDIT UNION ............................................................................ $0 $6,645 $305,693 $6,645 $305,693819817 PLAINS COMMERCE BANK ..................................................................................... $0 $6,645 $359,705 $6,645 $359,705832870 STATE CS EMPLOYEES FEDERAL CREDIT U .......................................................... $0 $6,625 $227,612 $6,625 $227,612813409 OMEGA BANK N A ................................................................................................. $0 $6,604 $6,604 $0833701 AVESTAR CU .......................................................................................................... $0 $6,601 $252,033 $6,601 $252,033830931 MISSOURI HIGHER EDUCATION LOAN AUTH .......................................................... $0 $6,583 $338,353 $6,583 $338,353819818 RAPID CITY TELCO FEDERAL CREDIT UNI ............................................................. $0 $6,576 $307,886 $6,576 $307,886833384 UNILEVER FEDERAL CREDIT UNION ...................................................................... $0 $6,568 $216,057 $6,568 $216,057830530 OSHKOSH CENTRAL CREDIT UNION ...................................................................... $0 $6,531 $329,338 $6,531 $329,338833374 LADISH COMMUNITY CU ........................................................................................ $0 $6,524 $333,949 $6,524 $333,949823466 GULF COAST BANK ................................................................................................ $0 $6,512 $356,282 $6,512 $356,282

137

819575 STANWOOD AREA FCU ........................................................................................... $0 $6,489 $320,320 $6,489 $320,320832974 KILOWATT CREDIT UNION ...................................................................................... $0 $6,482 $171,714 $6,482 $171,714819648 UNIVERSITY NATIONAL BANK OF CHICAGO ........................................................... $0 $6,477 $0 $6,477 $0832915 UFCW LOCAL 1776 FCU ........................................................................................ $0 $6,469 $243,824 $6,469 $243,824830523 GATES CHILI FEDERAL CREDIT UNION .................................................................. $0 $6,456 $183,377 $6,456 $183,377825435 BANK OF MONTICELLO .......................................................................................... $0 $6,429 $377,921 $6,429 $377,921829212 TEACHERS CREDIT UNION ..................................................................................... $0 $6,389 $314,026 $6,389 $314,026819012 BANK OF UTICA ..................................................................................................... $0 $6,355 $389,130 $6,355 $389,130818402 FIRST NATIONAL BANK—FOX VALLEY ................................................................... $0 $6,344 $377,842 $6,344 $377,842811908 FIRST BANK OF BALDWIN ...................................................................................... $0 $6,324 $352,444 $6,324 $352,444832928 MONEY FEDERAL CREDIT UNION .......................................................................... $0 $6,310 $247,623 $6,310 $247,623833631 UTILITIES EMPLOYEES CREDIT UNION .................................................................. $0 $6,298 $6,298 $0833588 THE ALTOONA HOSPITAL FCU ................................................................................ $0 $6,291 $353,687 $6,291 $353,687832984 ONE SOURCE FCU ................................................................................................. $0 $6,272 $322,696 $6,272 $322,696827361 BLUE GRASS SAVINGS BANK ................................................................................ $0 $6,271 $206,980 $6,271 $206,980815708 FIRST NATIONAL BANK VALPARAISO ..................................................................... $0 $6,265 $200,815 $6,265 $200,815814540 UNION BANK & TRUST COMPANY ......................................................................... $0 $6,264 $6,264 $0832537 TAPCO CREDIT UNION ........................................................................................... $0 $6,240 $315,896 $6,240 $315,896832954 SCRANTON TIMES EMP FCU .................................................................................. $0 $6,232 $6,232 $0831913 WESTERN CREDIT UNION INC ............................................................................... $0 $6,222 $211,878 $6,222 $211,878832287 CUMBERLAND COUNTY FCU .................................................................................. $0 $6,220 $466,888 $6,220 $466,888833411 OKLAHOMA EDUCATORS CU .................................................................................. $0 $6,192 $274,747 $6,192 $274,747833745 HONEYWELL FCU ................................................................................................... $0 $6,190 $290,808 $6,190 $290,808819504 NUMERICA CREDIT UNION .................................................................................... $0 $6,188 $357,791 $6,188 $357,791832651 GLATCO CREDIT UNION ......................................................................................... $0 $6,184 $216,292 $6,184 $216,292814381 VALLEY EXCHANGE BANK ...................................................................................... $0 $6,162 $244,064 $6,162 $244,064830930 CENTRAL VIRGINIA FEDERAL CREDIT UNI ............................................................. $0 $6,121 $240,698 $6,121 $240,698824852 EASTERN BANK ..................................................................................................... $0 $6,118 $423,923 $6,118 $423,923833710 OZONA NATIONAL BANK ........................................................................................ $0 $6,105 $268,490 $6,105 $268,490803967 UNITED COMMUNITY BANK ................................................................................... $0 $6,089 $187,795 $6,089 $187,795829703 BORDER CAPITAL BANK ........................................................................................ $0 $6,069 $266,968 $6,069 $266,968830387 WEBSTER FEDERAL CU ......................................................................................... $0 $6,057 $185,391 $6,057 $185,391813583 FARMERS & MERCHANTS STATE BANK ................................................................. $0 $6,043 $246,250 $6,043 $246,250833839 STAR CHOICE CREDIT UNION ................................................................................ $0 $6,042 $300,319 $6,042 $300,319819657 TIFFIN SAINT JOSEPH FEDERAL CREDIT ................................................................ $0 $6,041 $354,162 $6,041 $354,162832492 PACIFIC NORTHWEST FEDERAL CREDIT UN .......................................................... $0 $6,022 $320,993 $6,022 $320,993833354 KNIFE RIVER CREDIT UNION ................................................................................. $0 $5,934 $186,767 $5,934 $186,767833506 ALLEGIANCE CREDIT UNION .................................................................................. $0 $5,906 $314,962 $5,906 $314,962810417 COMMERCIAL STATE BANK ................................................................................... $0 $5,892 $233,732 $5,892 $233,732819155 FARMERS & MERCHANTS BANK ............................................................................ $0 $5,870 $147,606 $5,870 $147,606

138

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

815780 INGERSOLL RAND FEDERAL CREDIT UNION .......................................................... $0 $5,849 $347,445 $5,849 $347,445805810 TACONNET FEDERAL CREDIT UNION ..................................................................... $0 $5,841 $395,275 $5,841 $395,275830564 SACO AND BIDDEFORD SVGS INST ....................................................................... $0 $5,830 $263,632 $5,830 $263,632826977 PYRAMAX BANK ..................................................................................................... $0 $5,806 $355,946 $5,806 $355,946833282 FIRST VICTORIA NATIONAL BANK .......................................................................... $0 $5,800 $345,266 $5,800 $345,266833407 BRONCO FEDERAL CREDIT UNION ........................................................................ $0 $5,784 $405,852 $5,784 $405,852832331 CHAMPLAIN VALLEY CREDIT UNION ...................................................................... $0 $5,782 $278,884 $5,782 $278,884833878 CITY-COUNTY FCU ................................................................................................. $0 $5,781 $287,778 $5,781 $287,778832750 MISSISSIPPI POSTAL EMPLOYEES FCU .................................................................. $0 $5,747 $373,440 $5,747 $373,440828634 DORT FEDERAL CREDIT UNION ............................................................................. $0 $5,733 $400,292 $5,733 $400,292824461 TEACHER FEDERAL CREDIT UNION ....................................................................... $0 $5,703 $308,018 $5,703 $308,018821347 OREGONIANS CU ................................................................................................... $0 $5,697 $210,330 $5,697 $210,330806378 FIRST STATE BANK OF ST JOSEPH ........................................................................ $0 $5,697 $248,875 $5,697 $248,875832391 TOLEDO AREA COMMUNITY CU ............................................................................. $0 $5,685 $367,893 $5,685 $367,893819511 SAVINGS BANK ...................................................................................................... $0 $5,652 $407,527 $5,652 $407,527828798 M & T BANK EDUCATIONAL LENDING ................................................................... $0 $5,644 $348,008 $5,644 $348,008833284 WEST POINTE BANK .............................................................................................. $0 $5,629 $323,998 $5,629 $323,998831859 WESTERN VISTA FEDERAL CREDIT UNION ............................................................ $0 $5,593 $233,345 $5,593 $233,345832897 OWEGO HERITAGE FCU ......................................................................................... $0 $5,589 $238,025 $5,589 $238,025828975 WESTMORELAND COMMUNITY FCU ....................................................................... $0 $5,588 $332,978 $5,588 $332,978826556 LOGAN COUNTY BANK ........................................................................................... $0 $5,577 $219,829 $5,577 $219,829832377 PORTLAND REGIONAL FEDERAL CREDIT UN ......................................................... $0 $5,540 $189,642 $5,540 $189,642825568 UKRAINIAN SELFRELIANCE OF W PA FCU ............................................................. $0 $5,534 $151,893 $5,534 $151,893831119 MO HIGHER ED LOAN AUTHORITY ......................................................................... $0 $5,526 $838,203 $5,526 $838,203820726 HUTCHINSON CREDIT UNION ................................................................................. $0 $5,526 $204,527 $5,526 $204,527810489 FULTON STATE BANK ............................................................................................. $0 $5,525 $228,033 $5,525 $228,033832340 AUBURN COMMUNITY FCU .................................................................................... $0 $5,523 $267,712 $5,523 $267,712833240 FARGO PUBLIC SCHOOLS FEDERAL CREDIT ......................................................... $0 $5,520 $282,746 $5,520 $282,746833233 US BANK ELT PHEA INC ........................................................................................ $0 $5,511 $703,430 $5,511 $703,430810462 FIRST STATE BANK OF MILLER ............................................................................. $0 $5,504 $272,551 $5,504 $272,551828826 CENTRAL BANK OF LEBANON ................................................................................ $0 $5,498 $190,121 $5,498 $190,121814440 COMMUNITY FIRST CU OF FLORIDA ...................................................................... $0 $5,478 $287,226 $5,478 $287,226834107 FRANKLIN OIL REGION CU .................................................................................... $0 $5,472 $228,884 $5,472 $228,884

139

833899 BANGOR FCU ......................................................................................................... $0 $5,439 $338,645 $5,439 $338,645821715 MAGNOLIA FCU ...................................................................................................... $0 $5,432 $410,800 $5,432 $410,800823079 HOME SAVINGS & LOAN ASSOCIATION ................................................................. $0 $5,410 $303,241 $5,410 $303,241832881 LEWISTON PORTER FCU ........................................................................................ $0 $5,393 $222,006 $5,393 $222,006819350 UNITUS COMMUNITY CU ....................................................................................... $0 $5,391 $250,308 $5,391 $250,308832522 MILESTONE FCU .................................................................................................... $0 $5,384 $249,171 $5,384 $249,171819088 POWER COOP EMPLOYEES CREDIT UNION ........................................................... $0 $5,378 $232,825 $5,378 $232,825832356 BISSELL EMPLOYEES CREDIT UNION .................................................................... $0 $5,373 $176,217 $5,373 $176,217833687 CLASSIC FEDERAL CREDIT UNION ........................................................................ $0 $5,362 $338,850 $5,362 $338,850833739 CALIFORNIA CREDIT UNION ................................................................................... $0 $5,360 $277,887 $5,360 $277,887813148 MACOMB SCH & GOVERNMENT CREDIT UNIO ...................................................... $0 $5,301 $356,332 $5,301 $356,332833727 BUFFALO SERVICE CREDIT UNION ........................................................................ $0 $5,290 $183,706 $5,290 $183,706812008 STATE BANK OF CAZENOVIA ................................................................................. $0 $5,281 $393,573 $5,281 $393,573823895 LANSING AUTOMAKERS FCU .................................................................................. $0 $5,279 $284,706 $5,279 $284,706832913 LITTLE GIANT FEDERAL CREDIT UNION ................................................................. $0 $5,270 $307,074 $5,270 $307,074812688 M & T BANK EDUCATIONAL LENDING ................................................................... $0 $5,265 $0 $5,265 $0810466 FIRST NATIONAL BANK OF VOLGA ......................................................................... $0 $5,258 $223,666 $5,258 $223,666833320 CO-OPERATIVE CREDIT UNION .............................................................................. $0 $5,253 $192,604 $5,253 $192,604832942 TEMCO EMPLOYEES FCU ....................................................................................... $0 $5,250 $5,250 $0810533 PIONEER BANK & TRUST ...................................................................................... $0 $5,224 $0 $5,224 $0833396 TEXAS DPS CREDIT UNION .................................................................................... $0 $5,222 $367,187 $5,222 $367,187833083 RACINE MUNICIPAL EMPLOYEES CREDIT U .......................................................... $0 $5,219 $254,862 $5,219 $254,862826730 CENTURY FEDERAL CREDIT UNION ....................................................................... $0 $5,213 $5,213 $0834219 US BANK ELT STUDENTONE LLC ........................................................................... $0 $5,186 $23,038 $5,186 $23,038833651 MENASHA EMP CU ................................................................................................ $0 $5,173 $211,402 $5,173 $211,402810518 PEOPLES STATE BANK ........................................................................................... $0 $5,158 $263,509 $5,158 $263,509809015 SOUTHWEST NATIONAL BANK ................................................................................ $0 $5,150 $219,619 $5,150 $219,619827445 THIRD FEDERAL SAVINGS BANK ............................................................................ $0 $5,127 $305,891 $5,127 $305,891832905 MOHAWK VALLEY FCU ........................................................................................... $0 $5,125 $151,523 $5,125 $151,523833510 NEENAH FOUNDRY CREDIT UNION ........................................................................ $0 $5,122 $214,530 $5,122 $214,530830665 MUNICIPAL CREDIT UNION .................................................................................... $0 $5,120 $458,008 $5,120 $458,008819245 HOMETOWN BANK ................................................................................................. $0 $5,095 $281,418 $5,095 $281,418832490 DPL FEDERAL CREDIT UNION ................................................................................ $0 $5,087 $136,354 $5,087 $136,354833555 LIBERTY FIRST CREDIT UNION .............................................................................. $0 $5,087 $314,878 $5,087 $314,878833746 CLEARVIEW FCU .................................................................................................... $0 $5,085 $311,423 $5,085 $311,423828125 ST PAUL POSTAL EMP CU ..................................................................................... $0 $5,074 $284,370 $5,074 $284,370826375 AMERICAN STATE BANK ........................................................................................ $0 $5,059 $189,657 $5,059 $189,657833157 JP MORGAN CHASE SMS TRUST 1994-B .............................................................. $0 $5,059 $525,374 $5,059 $525,374809874 PEOPLES STATE BANK ........................................................................................... $0 $5,051 $10,542 $5,051 $10,542832523 WEST VIRGINIA CENTRAL CREDIT UNION .............................................................. $0 $5,019 $179,214 $5,019 $179,214

140

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833348 COMMUNITYAMERICA CREDIT UNION .................................................................... $0 $5,016 $321,399 $5,016 $321,399832302 SENTRY FCU .......................................................................................................... $0 $5,014 $175,470 $5,014 $175,470832452 NEWPORT NEWS MUNICIPAL ECU ......................................................................... $0 $5,005 $185,941 $5,005 $185,941829967 BAYER HERITAGE FCU .......................................................................................... $0 $5,004 $292,719 $5,004 $292,719823588 AURGROUP FINANCIAL CREDIT UNION .................................................................. $0 $4,965 $275,167 $4,965 $275,167828527 OMAHA FEDERAL CREDIT UNION .......................................................................... $0 $4,965 $270,981 $4,965 $270,981833300 THE PEOPLES COMMUNITY BANK ......................................................................... $0 $4,956 $4,956 $0830488 AMPLIFY FCU ......................................................................................................... $0 $4,956 $219,757 $4,956 $219,757812762 CROSSROADS CU .................................................................................................. $0 $4,929 $251,890 $4,929 $251,890832263 HAMPTON ROADS EDUCATORS CU ........................................................................ $0 $4,917 $237,119 $4,917 $237,119832255 SWEET HOME FEDERAL CREDIT UNION ................................................................ $0 $4,896 $255,823 $4,896 $255,823829346 MEMBERS’ ADVANTAGE CU ................................................................................... $0 $4,881 $269,585 $4,881 $269,585820418 SECU FEDERAL CREDIT UNION ............................................................................. $0 $4,875 $425,598 $4,875 $425,598819169 YOAKUM NATIONAL BANK ...................................................................................... $0 $4,869 $354,707 $4,869 $354,707832256 ST JOSEPHS PARISH BUFFALO FCU ...................................................................... $0 $4,839 $161,875 $4,839 $161,875816367 ASSOCIATED CREDIT UNION .................................................................................. $0 $4,829 $272,485 $4,829 $272,485823990 FAMILY CREDIT UNION .......................................................................................... $0 $4,822 $182,326 $4,822 $182,326823296 SCHOOL EMP. LOR CU .......................................................................................... $0 $4,819 $317,864 $4,819 $317,864832806 ROUNTREE CREDIT UNION .................................................................................... $0 $4,815 $210,261 $4,815 $210,261826969 METROPOLITAN CREDIT UNION ............................................................................. $0 $4,802 $343,846 $4,802 $343,846832442 OSU FEDERAL CREDIT UNION ............................................................................... $0 $4,768 $228,752 $4,768 $228,752831489 RUSHMORE ELECTRIC FEDERAL CREDIT UN ........................................................ $0 $4,761 $275,932 $4,761 $275,932832495 FIREFIGHTERS CU ................................................................................................. $0 $4,760 $197,298 $4,760 $197,298831252 STATE BANK OF CROSS PLAINS ............................................................................ $0 $4,731 $292,897 $4,731 $292,897832278 GREATER PORTLAND MUNICIPAL FCU ................................................................... $0 $4,731 $304,202 $4,731 $304,202832759 H-F CREDIT UNION ................................................................................................ $0 $4,718 $198,184 $4,718 $198,184829641 POWERCO CREDIT UNION INC .............................................................................. $0 $4,712 $167,861 $4,712 $167,861822648 MICHIGAN RURAL REHABILITATION CORPO .......................................................... $0 $4,704 $342,328 $4,704 $342,328828340 FIRST EDUCATION FCU .......................................................................................... $0 $4,683 $254,306 $4,683 $254,306833175 STUDENT LOAN FUNDING US BANK ELT ............................................................... $0 $4,683 $96,843 $4,683 $96,843805804 K V FEDERAL CREDIT UNION ................................................................................ $0 $4,635 $290,954 $4,635 $290,954805071 CHURCH POINT BANK & TRUST COMPANY ........................................................... $0 $4,615 $302,407 $4,615 $302,407829262 METRO HEALTH SERVICE FCU .............................................................................. $0 $4,594 $172,705 $4,594 $172,705

141

817943 HUDSON RIVER COMM CU .................................................................................... $0 $4,589 $333,914 $4,589 $333,914806802 CU COMMUNITY CU .............................................................................................. $0 $4,577 $132,756 $4,577 $132,756832330 ROYAL FEDERAL CREDIT UNION ........................................................................... $0 $4,576 $0 $4,576 $0833832 BANKNORTH .......................................................................................................... $0 $4,569 $4,569 $0833916 GRAPHIC COMMUNICATORS & MACH FCU ............................................................ $0 $4,564 $121,396 $4,564 $121,396805788 MAINE MEDIA FEDERAL CREDIT UNION ................................................................ $0 $4,556 $169,873 $4,556 $169,873833453 IBEW LOCAL #56 FEDERAL CREDIT UNION ........................................................... $0 $4,541 $143,432 $4,541 $143,432832975 NEW ENGLAND UNITED METHODIST FCU .............................................................. $0 $4,538 $149,030 $4,538 $149,030833444 FORT WORTH COMMUNITY CU .............................................................................. $0 $4,533 $220,906 $4,533 $220,906830311 A M COMMUNITY CREDIT UNION .......................................................................... $0 $4,530 $218,343 $4,530 $218,343833924 LIVERPOOL CENTRAL SCHOOLS FCU ..................................................................... $0 $4,521 $351,126 $4,521 $351,126829432 WHG-PGH STEEL COMMFCU .................................................................................. $0 $4,521 $362,569 $4,521 $362,569829833 M O FEDERAL CREDIT UNION ............................................................................... $0 $4,506 $169,798 $4,506 $169,798832402 MERCY HEALTH PARTNERS FCU ........................................................................... $0 $4,502 $196,625 $4,502 $196,625807669 WOODSTOWN NATI BANK & TRUST CO ................................................................. $0 $4,480 $166,695 $4,480 $166,695832637 TELHIO CREDIT UNION .......................................................................................... $0 $4,461 $266,562 $4,461 $266,562832043 LINCOLN COUNTRY CU .......................................................................................... $0 $4,459 $154,542 $4,459 $154,542832674 MERCK SHARP & DOHME FCU .............................................................................. $0 $4,431 $343,029 $4,431 $343,029833342 WEST OHIO UNITED METHODIST CU ..................................................................... $0 $4,429 $316,729 $4,429 $316,729819438 HORIZON CREDIT UNION ....................................................................................... $0 $4,411 $339,402 $4,411 $339,402824843 CHESTERFIELD FEDERAL CREDIT UNION .............................................................. $0 $4,402 $148,531 $4,402 $148,531818223 COMMUNITY STATE BANK ..................................................................................... $0 $4,400 $328,765 $4,400 $328,765833940 SHIPBUILDERS CU ................................................................................................. $0 $4,397 $306,545 $4,397 $306,545832293 BOULDER MUNICIPAL EFCU .................................................................................. $0 $4,392 $150,550 $4,392 $150,550814345 EATON NATIONAL BANK & TRUST CO ................................................................... $0 $4,349 $287,183 $4,349 $287,183832903 LEDGE LIGHT FCU ................................................................................................. $0 $4,313 $150,581 $4,313 $150,581834156 FRANKLIN MINT FCU ............................................................................................. $0 $4,297 $394,783 $4,297 $394,783831609 GUARANTY BANK ................................................................................................... $0 $4,296 $152,072 $4,296 $152,072830370 EVERGREEN CREDIT UNION .................................................................................. $0 $4,290 $266,222 $4,290 $266,222832717 ARMSTRONG COUNTY EMPL FCU .......................................................................... $0 $4,270 $4,270 $0830443 TRUSTAR FCU ........................................................................................................ $0 $4,264 $238,823 $4,264 $238,823832120 EATON FAMILY CREDIT UNION .............................................................................. $0 $4,256 $200,863 $4,256 $200,863832294 OHIO EDUCATIONAL CREDIT UNION INC ............................................................... $0 $4,253 $287,351 $4,253 $287,351818896 AMERISTATE BANK ................................................................................................ $0 $4,252 $110,078 $4,252 $110,078819383 MARATHON STATE BANK ....................................................................................... $0 $4,245 $204,392 $4,245 $204,392833888 WYROPE WILLIAMSPORT FCU ................................................................................ $0 $4,230 $299,373 $4,230 $299,373805624 NORWAY SAVINGS BANK ....................................................................................... $0 $4,218 $164,304 $4,218 $164,304833639 WAT FEDERAL CREDIT UNION ............................................................................... $0 $4,207 $255,186 $4,207 $255,186832658 RIVERSIDE FCU ..................................................................................................... $0 $4,180 $206,000 $4,180 $206,000833783 TRUCHOICE FCU .................................................................................................... $0 $4,179 $269,621 $4,179 $269,621

142

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833735 QUEENS POSTAL FCU ............................................................................................ $0 $4,161 $169,262 $4,161 $169,262832047 NMA FCU ............................................................................................................... $0 $4,160 $227,477 $4,160 $227,477833488 ISLAND FEDERAL CREDIT UNION .......................................................................... $0 $4,157 $290,918 $4,157 $290,918832938 ACCESS FEDERAL CREDIT UNION ......................................................................... $0 $4,155 $236,244 $4,155 $236,244834070 WICHITA FALLS TEACHER FCU .............................................................................. $0 $4,154 $275,246 $4,154 $275,246832332 ESM-NS FEDERAL CREDIT UNION ......................................................................... $0 $4,148 $267,646 $4,148 $267,646827971 MACO EDUCATORS FEDERAL CREDIT UNION ........................................................ $0 $4,145 $171,373 $4,145 $171,373832520 PEOPLES FCU ........................................................................................................ $0 $4,138 $256,133 $4,138 $256,133834108 PARTNERS FCU ..................................................................................................... $0 $4,135 $245,995 $4,135 $245,995829385 CITIES CREDIT UNION ........................................................................................... $0 $4,121 $165,185 $4,121 $165,185833317 OHIO EDISON-PENN POWER CU ............................................................................ $0 $4,106 $261,284 $4,106 $261,284830936 PEPPERELL BANK & TRUST .................................................................................. $0 $4,075 $239,695 $4,075 $239,695818609 PORT WASHINGTON STATE BANK .......................................................................... $0 $4,054 $253,639 $4,054 $253,639804860 M&I BANK ............................................................................................................. $0 $4,032 $4,032 $0832712 KANSAS TEACHERS CREDIT UNION ....................................................................... $0 $4,031 $125,054 $4,031 $125,054833155 FRANCISCAN SKEMP CREDIT UNION ..................................................................... $0 $4,029 $248,637 $4,029 $248,637832874 NIAGARA WHEATFIELD FCU ................................................................................... $0 $4,016 $165,585 $4,016 $165,585816028 POSTMARK CREDIT UNION .................................................................................... $0 $4,014 $253,158 $4,014 $253,158832820 TRONA VALLEY FCU .............................................................................................. $0 $4,010 $113,262 $4,010 $113,262832470 SNO FALLS CREDIT UNION .................................................................................... $0 $4,004 $133,676 $4,004 $133,676832389 RIVER VALLEY CREDIT UNION ............................................................................... $0 $3,995 $175,218 $3,995 $175,218828216 PUBLIC EMPLOYEES CREDIT UNION ..................................................................... $0 $3,992 $274,743 $3,992 $274,743831392 ALLCO CREDIT UNION ........................................................................................... $0 $3,983 $278,867 $3,983 $278,867823964 UNION BANK & TRUST CO .................................................................................... $0 $3,971 $248,854 $3,971 $248,854822446 MEMBER’S CHOICE OF CENTRAL TX FCU ............................................................. $0 $3,970 $188,326 $3,970 $188,326833158 EMPLOYMENT SECURITY CREDIT UNION ............................................................... $0 $3,964 $198,698 $3,964 $198,698830350 EASTMILL FEDERAL CREDIT UNION ....................................................................... $0 $3,948 $201,428 $3,948 $201,428802261 EGLIN FEDERAL CREDIT UNION ............................................................................ $0 $3,940 $220,584 $3,940 $220,584822349 CITIZENS NATIONAL BANK ..................................................................................... $0 $3,939 $277,209 $3,939 $277,209822605 CES CREDIT UNION INC ........................................................................................ $0 $3,938 $266,733 $3,938 $266,733806279 LAKE REGION BANK .............................................................................................. $0 $3,936 $227,713 $3,936 $227,713832291 P & C EMPLOYEES FCU ........................................................................................ $0 $3,930 $182,284 $3,930 $182,284833049 NEW HAMPSHIRE POSTAL CU ............................................................................... $0 $3,929 $308,982 $3,929 $308,982

143

808467 MINDEN EXCHANGE BANK & TRUST COMPAN ...................................................... $0 $3,910 $205,569 $3,910 $205,569806964 FIRST COMMUNITY BANK ...................................................................................... $0 $3,898 $3,898 $0833050 WESTCO FCU ......................................................................................................... $0 $3,889 $246,241 $3,889 $246,241809978 S A M P SCRANTON FCU ...................................................................................... $0 $3,878 $3,878 $0815661 PANTEX FEDERAL CREDIT UNION .......................................................................... $0 $3,874 $159,635 $3,874 $159,635834030 LAKES AREA CU .................................................................................................... $0 $3,855 $232,292 $3,855 $232,292829324 STARK FEDERAL CREDIT UNION ............................................................................ $0 $3,854 $262,262 $3,854 $262,262833753 PARTNERS CREDIT UNION ..................................................................................... $0 $3,822 $165,391 $3,822 $165,391828854 FIRST COMMUNITY CU .......................................................................................... $0 $3,819 $186,882 $3,819 $186,882825495 EDUCATION PLUS CREDIT UNION .......................................................................... $0 $3,791 $225,755 $3,791 $225,755800062 WHITNEY NATIONAL BANK ..................................................................................... $0 $3,788 $0 $3,788 $0832505 FIRST PEOPLES COMMUNITY FCU ......................................................................... $0 $3,785 $142,665 $3,785 $142,665832099 BILLINGS FEDERAL CREDIT UNION ....................................................................... $0 $3,776 $242,427 $3,776 $242,427822093 ALTOONA BUTTERICK FCU ..................................................................................... $0 $3,767 $128,880 $3,767 $128,880833680 ALTURA CREDIT UNION ......................................................................................... $0 $3,766 $249,642 $3,766 $249,642820828 MEMPHIS AREA TEACHERS CREDIT UNION ........................................................... $0 $3,763 $244,682 $3,763 $244,682829179 MAINE EDUCATION CREDIT UNION ........................................................................ $0 $3,763 $164,842 $3,763 $164,842832085 OMAHA DOUGLAS FCU .......................................................................................... $0 $3,761 $252,695 $3,761 $252,695830717 DAKOTA TERRITORY FEDERAL CREDIT UNI ........................................................... $0 $3,758 $172,747 $3,758 $172,747833656 POINT PLUS CREDIT UNION .................................................................................. $0 $3,747 $234,831 $3,747 $234,831810546 FIRST NATIONAL BANK SOUTH DAKOTA ................................................................ $0 $3,729 $91,857 $3,729 $91,857824566 VISIONARY FEDERAL CREDIT UNION ..................................................................... $0 $3,727 $235,035 $3,727 $235,035833836 SOUTHWEST OKLAHOMA FCU ................................................................................ $0 $3,726 $244,393 $3,726 $244,393834225 STUDENT LENDING WORKS INC ............................................................................ $57 $3,667 $0 $3,724 $0828143 CAMBRIA COUNTY FEDERAL SAVINGS & LO ......................................................... $0 $3,720 $204,516 $3,720 $204,516826528 FIDELITY DEPOSIT & DISCOUNT BANK .................................................................. $0 $3,715 $0 $3,715 $0834233 CANISIUS COLLEGE ............................................................................................... $0 $3,707 $3,707 $0833406 FOREST PARK FEDERAL CREDIT UNION ................................................................ $0 $3,705 $82,921 $3,705 $82,921829981 LOUVIERS FEDERAL CREDIT UNION ...................................................................... $0 $3,692 $123,423 $3,692 $123,423805806 GREATER WATERVILLE AREA FCU ......................................................................... $0 $3,671 $211,535 $3,671 $211,535833483 CANANDAIGUA SCHOOL DISTRICT FCU ................................................................. $0 $3,666 $135,358 $3,666 $135,358830883 VERMILLION FEDERAL CREDIT UNION ................................................................... $0 $3,661 $177,114 $3,661 $177,114810427 BANK STAR FINANCIAL .......................................................................................... $0 $3,656 $164,010 $3,656 $164,010808682 THE EDUCATION CREDIT UNION INC ..................................................................... $0 $3,654 $129,774 $3,654 $129,774810450 FARMERS STATE BANK .......................................................................................... $0 $3,633 $131,269 $3,633 $131,269813377 GREATER GREENSBURG INDUSTRIAL CR UN ........................................................ $0 $3,631 $189,575 $3,631 $189,575832218 HOWLAND-ENFIELD FEDERAL CREDIT UNIO .......................................................... $0 $3,628 $178,986 $3,628 $178,986822096 BORDER TRUST COMPANY .................................................................................... $0 $3,625 $477,763 $3,625 $477,763827735 BANK OF WHITMAN ............................................................................................... $0 $3,622 $324,650 $3,622 $324,650831030 CENTRAL MINNESOTA FCU .................................................................................... $0 $3,589 $5,579 $3,589 $5,579

144

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

810416 CITIZENS STATE BANK .......................................................................................... $0 $3,572 $191,199 $3,572 $191,199806529 STATE BANK OF CHANDLER .................................................................................. $0 $3,569 $195,887 $3,569 $195,887810900 THE HONDO NATIONAL BANK ................................................................................ $0 $3,547 $104,899 $3,547 $104,899832028 COLUMBIA-GREENE FEDERAL CREDIT UNIO ......................................................... $0 $3,535 $180,814 $3,535 $180,814831655 NEWAYGO COUNTY SERVICE ECU ......................................................................... $0 $3,532 $127,404 $3,532 $127,404831407 KIMCENTRAL CREDIT UNION ................................................................................. $0 $3,516 $195,442 $3,516 $195,442812757 HEARTLAND STATE BANK ...................................................................................... $0 $3,514 $144,506 $3,514 $144,506820105 COMMERCIAL BANK .............................................................................................. $0 $3,479 $202,322 $3,479 $202,322832952 WOODLANDS CREDIT UNION ................................................................................. $0 $3,479 $315,372 $3,479 $315,372834184 FREEDOM CU ........................................................................................................ $0 $3,478 $328,244 $3,478 $328,244813494 NORTHWEST SAVINGS BANK ................................................................................. $0 $3,476 $0 $3,476 $0833713 SOO LINE CREDIT UNION ...................................................................................... $0 $3,475 $158,576 $3,475 $158,576833514 CUMCO FEDERAL CREDIT UNION .......................................................................... $0 $3,463 $178,168 $3,463 $178,168827203 SECURITY NATIONAL LIFE INS CO ......................................................................... $0 $3,456 $17,063 $3,456 $17,063828913 NORTHWEST SAVINGS BANK ................................................................................. $0 $3,450 $0 $3,450 $0805147 JPMORGAN CHASE BANK NA ................................................................................. $0 $3,450 $47,278 $3,450 $47,278813146 FAMILY COMMUNITY CREDIT UNION ..................................................................... $0 $3,443 $131,890 $3,443 $131,890831933 FIRST NATIONAL BANK OF COKATO ....................................................................... $0 $3,416 $143,055 $3,416 $143,055829210 ROANOKE POSTAL EMPLOYEES F C U .................................................................. $0 $3,378 $3,378 $0832455 ROCKLAND S&L ASSOCIATION ............................................................................... $0 $3,377 $181,265 $3,377 $181,265830232 KENT CREDIT UNION ............................................................................................. $0 $3,367 $199,843 $3,367 $199,843832061 SOUTHEAST NEBRASKA FEDERAL CREDIT U ......................................................... $0 $3,364 $180,561 $3,364 $180,561834147 HAWTHORNE CU .................................................................................................... $0 $3,358 $114,306 $3,358 $114,306833801 OHIO VALLEY FCU ................................................................................................. $0 $3,349 $113,551 $3,349 $113,551833534 MIDLAND CO-OP CREDIT UNION ........................................................................... $0 $3,345 $84,262 $3,345 $84,262820283 FIRST COMMONWEALTH BANK .............................................................................. $0 $3,337 $4,364 $3,337 $4,364820002 GOLDEN CIRCLE CREDIT UNION INC .................................................................... $0 $3,336 $162,381 $3,336 $162,381834039 WELLS FARGO ELT AMERICAN OPTOMETRIC ......................................................... $0 $3,335 $3,335 $0808435 SPIRIT OF AMERICA FCU ....................................................................................... $0 $3,325 $186,424 $3,325 $186,424818790 POSTAL FEDERAL COMMUNITY CREDIT UNI .......................................................... $0 $3,325 $187,297 $3,325 $187,297819675 MINNWEST BANK SOUTH ....................................................................................... $0 $3,321 $94,964 $3,321 $94,964824329 AMARILLO COMMUNITY FEDERAL CREDIT U ......................................................... $0 $3,320 $195,705 $3,320 $195,705805805 DOWN EAST FCU ................................................................................................... $0 $3,306 $216,231 $3,306 $216,231

145

810973 BRADY NATIONAL BANK ........................................................................................ $0 $3,303 $219,154 $3,303 $219,154832811 COMMUNITY RESOURCE FCU ................................................................................ $0 $3,295 $124,654 $3,295 $124,654831485 DUPONT GOODRICH FCU ....................................................................................... $0 $3,292 $190,549 $3,292 $190,549805735 THE COUNTY FEDERAL CREDIT UNION ................................................................. $0 $3,287 $199,112 $3,287 $199,112832930 MONAD FEDERAL CREDIT UNION .......................................................................... $0 $3,274 $71,436 $3,274 $71,436832333 SYRACUSE FCU ..................................................................................................... $0 $3,264 $195,790 $3,264 $195,790829743 OAKLAND COUNTY EMPLOYEES CU ....................................................................... $0 $3,262 $156,613 $3,262 $156,613834185 US BANK ELT TX ASSC COMM COLLEGES ............................................................ $0 $3,246 $1,153 $3,246 $1,153832912 BCE FEDERAL CREDIT UNION ............................................................................... $0 $3,244 $120,925 $3,244 $120,925804912 CREDIT UNION OF AMERICA ................................................................................. $0 $3,237 $235,180 $3,237 $235,180833822 IRCO COMMUNITY FCU ......................................................................................... $0 $3,223 $139,099 $3,223 $139,099832940 MCKINNEY SCRANTON FCU ................................................................................... $0 $3,221 $124,668 $3,221 $124,668832873 CINCINNATI EMPLOYEES CU ................................................................................. $0 $3,219 $179,989 $3,219 $179,989832062 TCT FEDERAL CREDIT UNION ................................................................................ $0 $3,187 $182,543 $3,187 $182,543820130 MARKESAN STATE BANK ....................................................................................... $0 $3,164 $101,536 $3,164 $101,536832453 ST HELENS COMMUNITY FEDERAL CREDIT ........................................................... $0 $3,161 $107,955 $3,161 $107,955806566 STEARNS BANK NA ................................................................................................ $0 $3,159 $110,435 $3,159 $110,435833612 TRI-CO FEDERAL CREDIT UNION ........................................................................... $0 $3,137 $227,005 $3,137 $227,005820104 UNITY BANK .......................................................................................................... $0 $3,134 $135,619 $3,134 $135,619828947 WYSE FEDERAL CREDIT UNION ............................................................................. $0 $3,132 $131,572 $3,132 $131,572821656 FIRST FEDERAL SAVINGS & LOAN ASSOCI ............................................................ $0 $3,126 $158,292 $3,126 $158,292832791 U S EMPLOYEES CREDIT UNION ........................................................................... $0 $3,116 $69,948 $3,116 $69,948806465 PEOPLES STATE BANK OF WELLS ......................................................................... $0 $3,107 $233,897 $3,107 $233,897828966 UNION ELECTRIC STEEL FED CREDIT UN ............................................................. $0 $3,101 $3,101 $0810420 COMMUNITY BANK ................................................................................................ $0 $3,091 $130,073 $3,091 $130,073832242 FOUNDERS FEDERAL CREDIT UNION ..................................................................... $0 $3,083 $231,406 $3,083 $231,406824911 FLOODWOOD AREA CREDIT UNION ........................................................................ $0 $3,062 $57,136 $3,062 $57,136815675 PALISADES FCU ..................................................................................................... $0 $2,996 $176,454 $2,996 $176,454832346 LONG REACH EMPLOYEES FCU ............................................................................. $0 $2,985 $98,605 $2,985 $98,605803928 CITIZENS STATE BANK .......................................................................................... $0 $2,966 $93,780 $2,966 $93,780819113 WEST MILTON STATE BANK ................................................................................... $0 $2,959 $0 $2,959 $0832209 MEMBERSTRUST CREDIT UNION ........................................................................... $0 $2,952 $112,967 $2,952 $112,967833125 FOUR FOUR CREDIT UNION ................................................................................... $0 $2,943 $174,551 $2,943 $174,551823113 JACKSON AREA FEDERAL CREDIT UNION .............................................................. $0 $2,937 $128,954 $2,937 $128,954833712 1ST COMMUNITY FCU ........................................................................................... $0 $2,933 $0 $2,933 $0833715 BREWERY CREDIT UNION ...................................................................................... $0 $2,929 $156,642 $2,929 $156,642810406 FIRST FIDELITY BANK ............................................................................................ $0 $2,927 $0 $2,927 $0822427 NORTH CENTRAL CREDIT UNION ........................................................................... $0 $2,927 $172,249 $2,927 $172,249833744 SHAMROCK FEDERAL CREDIT UNION .................................................................... $0 $2,911 $136,411 $2,911 $136,411822056 SPRING MILL EMP FED CR UNION ........................................................................ $0 $2,904 $153,460 $2,904 $153,460

146

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

829223 US FEDERAL CREDIT UNION ................................................................................. $0 $2,901 $187,738 $2,901 $187,738831910 NATIONAL BANK OF ANDREWS .............................................................................. $0 $2,884 $112,197 $2,884 $112,197828944 ESSA BANK & TRUST ............................................................................................ $0 $2,884 $2,884 $0814668 F&M BANK & TRUST ............................................................................................. $0 $2,882 $44,589 $2,882 $44,589833867 UNITED BANK OF EL PASO NORTE ........................................................................ $0 $2,881 $2,881 $0822383 SHELBY STATE BANK ............................................................................................ $0 $2,868 $172,143 $2,868 $172,143833087 ST VINCENT HOSPITAL EMPLOYEES’ CU ............................................................... $0 $2,857 $175,348 $2,857 $175,348833279 PASADENA SERVICE FCU ...................................................................................... $0 $2,857 $177,434 $2,857 $177,434834003 ZIONS BANK ELT EDUCATION LOAN CO ................................................................ $0 $2,829 $0 $2,829 $0834143 ELK HORN BANK & TRUST CO .............................................................................. $0 $2,816 $0 $2,816 $0806399 GLENWOOD STATE BANK ....................................................................................... $0 $2,805 $182,406 $2,805 $182,406806258 FARMERS & MERCHANTS STATE BANK ................................................................. $0 $2,804 $130,599 $2,804 $130,599831144 JP MORGANCHASE BANK ....................................................................................... $0 $2,796 $0 $2,796 $0825419 WITTENBERG UNIVERSITY FCU .............................................................................. $0 $2,791 $130,462 $2,791 $130,462832699 SELH FEDERAL CREDIT UNION .............................................................................. $0 $2,789 $122,278 $2,789 $122,278806477 UNITY BANK NORTH .............................................................................................. $0 $2,784 $97,912 $2,784 $97,912800802 BOA STUDENT BANKING/CA9-169-04-01 .............................................................. $0 $2,783 $0 $2,783 $0818870 COMMUNITY STATE BANK ..................................................................................... $0 $2,780 $2,780 $0822147 TEXAS TRUST CREDIT UNION ................................................................................ $0 $2,776 $132,488 $2,776 $132,488834146 NORTH MEMORIAL FCU ......................................................................................... $0 $2,775 $84,105 $2,775 $84,105828639 WEXFORD COMMUNITY CU .................................................................................... $0 $2,747 $162,307 $2,747 $162,307818340 GTE FCU ................................................................................................................ $0 $2,742 $177,391 $2,742 $177,391803925 CITIZENS BANK ..................................................................................................... $0 $2,741 $177,748 $2,741 $177,748820881 FIRST STATE BANK OF ROSEMOUNT ..................................................................... $0 $2,739 $146,899 $2,739 $146,899803068 IAA CREDIT UNION ................................................................................................ $0 $2,723 $42,327 $2,723 $42,327830776 SIMPLY SERVICE FCU ........................................................................................... $0 $2,718 $117,288 $2,718 $117,288833618 BIG BEAR/MEMBERS FIRST CU ............................................................................. $0 $2,707 $159,520 $2,707 $159,520834169 UNION BANK ELT NAT’L ED LOAN NEW EN ........................................................... $0 $2,686 $231,540 $2,686 $231,540832541 HERITAGE FAMILY CREDIT UNION ......................................................................... $0 $2,685 $181,911 $2,685 $181,911833358 TWO HARBORS FCU .............................................................................................. $0 $2,685 $117,870 $2,685 $117,870831548 CORUS BANK ......................................................................................................... $0 $2,685 $2,685 $0832661 FAIRFAX COUNTY FEDERAL CREDIT UNION ........................................................... $0 $2,674 $175,120 $2,674 $175,120833133 UNITED NATIONS FCU ........................................................................................... $0 $2,672 $142,770 $2,672 $142,770

147

832999 BANGOR HYDRO FCU ............................................................................................ $0 $2,649 $147,969 $2,649 $147,969832393 FIRST CHOICE CU ................................................................................................. $0 $2,646 $180,681 $2,646 $180,681830782 SERVICES CENTER FCU ........................................................................................ $0 $2,642 $129,126 $2,642 $129,126803827 THE NAPOLEON STATE BANK ................................................................................ $0 $2,642 $143,752 $2,642 $143,752832098 RAVALLI COUNTY FEDERAL CREDIT UNION ........................................................... $0 $2,634 $194,655 $2,634 $194,655822654 MINER COUNTY BANK ........................................................................................... $0 $2,627 $70,158 $2,627 $70,158833743 RIVERVIEW FCU ..................................................................................................... $0 $2,611 $117,572 $2,611 $117,572823966 FALLS CITY NATIONAL BANK ................................................................................. $0 $2,605 $162,453 $2,605 $162,453832345 TEMPE SCHOOLS CREDIT UNION .......................................................................... $0 $2,603 $158,521 $2,603 $158,521832208 NORTHERN STAR CU INC ...................................................................................... $0 $2,602 $116,958 $2,602 $116,958820753 BELLEVUE STATE BANK ......................................................................................... $0 $2,594 $57,618 $2,594 $57,618832233 CLEVELAND POLICE CREDIT UNION INC ............................................................... $0 $2,593 $110,699 $2,593 $110,699832588 BUTTE COMMUNITY FCU ....................................................................................... $0 $2,585 $105,820 $2,585 $105,820832388 WHITE RIVER CREDIT UNION ................................................................................ $0 $2,573 $68,154 $2,573 $68,154832366 KENSINGTON VALLEY COMM CU ........................................................................... $0 $2,573 $128,128 $2,573 $128,128810499 MENNO STATE BANK ............................................................................................. $0 $2,557 $84,625 $2,557 $84,625824462 PRIMESOURCE CREDIT UNION .............................................................................. $0 $2,552 $118,138 $2,552 $118,138817970 COULEE DAM FEDERAL CREDIT UNION ................................................................. $0 $2,552 $179,358 $2,552 $179,358833549 SEBASTICOOK VALLEY FCU ................................................................................... $0 $2,549 $187,399 $2,549 $187,399828684 BAKER’S FEDERAL CREDIT UNION ........................................................................ $0 $2,546 $110,484 $2,546 $110,484833123 KENNEDY SPACE CENTER FEDERAL CREDIT ......................................................... $0 $2,537 $130,955 $2,537 $130,955832295 ROCKY MT LAW ENFORCEMENT FCU .................................................................... $0 $2,536 $104,927 $2,536 $104,927831131 STUDENT LOAN MARKETING ASSN LOLR ............................................................... $0 $2,534 $146,673 $2,534 $146,673832168 NICKEL STEEL FEDERAL CREDIT UNION ............................................................... $0 $2,534 $86,351 $2,534 $86,351833574 WABELLCO FEDERAL CREDIT UNION ..................................................................... $0 $2,530 $150,316 $2,530 $150,316833830 CCS FEDERAL CREDIT UNION ............................................................................... $0 $2,525 $119,535 $2,525 $119,535826538 VALLEY BANK ........................................................................................................ $0 $2,524 $114,529 $2,524 $114,529813161 SAINT FRANCIS X FCU .......................................................................................... $0 $2,518 $110,560 $2,518 $110,560829815 PARDA FEDERAL CREDIT UNION ........................................................................... $0 $2,516 $133,235 $2,516 $133,235833819 LOS ANGELES FIREMENS CU ................................................................................ $0 $2,500 $180,955 $2,500 $180,955831645 DAKOTALAND FCU ................................................................................................. $0 $2,497 $2,497 $0830503 FLASHER COMMUNITY CREDIT UNION .................................................................. $0 $2,492 $148,604 $2,492 $148,604832334 EXCELSIOR CREDIT UNION .................................................................................... $0 $2,488 $167,275 $2,488 $167,275815862 NEW ALLIANCE BANK ............................................................................................ $0 $2,480 $2,480 $0827367 MERRILL FEDERAL SAVINGS & LOAN .................................................................... $0 $2,472 $173,337 $2,472 $173,337833969 GALLUP FEDERAL CREDIT UNION .......................................................................... $0 $2,463 $72,036 $2,463 $72,036832396 MEMBERS FIRST CREDIT UNION OF NH ............................................................... $0 $2,454 $163,922 $2,454 $163,922828289 FIRST CREDIT UNION ............................................................................................ $0 $2,451 $101,555 $2,451 $101,555832892 SPOKANE FEDERAL CREDIT UNION ....................................................................... $0 $2,434 $149,585 $2,434 $149,585832681 MIDWEST INDEPENDENT BANK .............................................................................. $0 $2,433 $51,784 $2,433 $51,784

148

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

822454 FIRELANDS FEDERAL CREDIT UNION .................................................................... $0 $2,430 $111,206 $2,430 $111,206832968 FIRST CATHOLIC FCU ............................................................................................ $0 $2,428 $183,229 $2,428 $183,229833755 IRON COUNTY COMM CU ...................................................................................... $0 $2,426 $151,347 $2,426 $151,347832891 FIRST EAGLE FCU .................................................................................................. $0 $2,419 $148,570 $2,419 $148,570832464 BATTLE CREEK POSTAL CREDIT UNION ................................................................ $0 $2,418 $92,191 $2,418 $92,191823585 BENTON STATE BANK ............................................................................................ $0 $2,416 $140,884 $2,416 $140,884806251 EXCHANGE STATE BANK OF HILLS ........................................................................ $0 $2,406 $81,428 $2,406 $81,428833375 ATLANTIC CITY ELECTRIC CO EFCU ...................................................................... $0 $2,400 $158,385 $2,400 $158,385832773 NORTHWOOD CREDIT UNION ................................................................................. $0 $2,399 $82,993 $2,399 $82,993833787 ASSOCIATED CU OF TX ......................................................................................... $0 $2,397 $166,807 $2,397 $166,807833760 WILSERV CU .......................................................................................................... $0 $2,383 $163,691 $2,383 $163,691806960 MONTANA STATE BANK ......................................................................................... $0 $2,378 $113,881 $2,378 $113,881833566 VALLEY CREDIT UNION .......................................................................................... $0 $2,373 $115,304 $2,373 $115,304833758 PEOPLES CHOICE FCU .......................................................................................... $0 $2,370 $122,346 $2,370 $122,346816474 GEORGIA METHODIST FCU .................................................................................... $0 $2,356 $122,644 $2,356 $122,644829918 AIR GUARD FEDERAL CREDIT UNION .................................................................... $0 $2,353 $103,958 $2,353 $103,958817362 BLENCOE STATE BANK .......................................................................................... $0 $2,345 $149,803 $2,345 $149,803809994 SWINEFORD NATIONAL BANK ................................................................................ $0 $2,328 $185,537 $2,328 $185,537832400 FREMONT FCU ....................................................................................................... $0 $2,325 $215,391 $2,325 $215,391833564 CLACKAMAS COMMUNITY FCU .............................................................................. $0 $2,322 $143,886 $2,322 $143,886806208 CITIZENS NATIONAL BANK ..................................................................................... $0 $2,312 $77,065 $2,312 $77,065833304 FIRST FEDERAL SVINGS & LOAN OF BATH ........................................................... $0 $2,303 $152,521 $2,303 $152,521827966 NSWC FEDERAL CREDIT UNION ............................................................................ $0 $2,296 $101,265 $2,296 $101,265832511 MUNICIPAL EMPLOYEES & TEACHERS CU ............................................................ $0 $2,292 $120,490 $2,292 $120,490819788 BRAINERD B N CREDIT UNION ............................................................................. $0 $2,292 $72,002 $2,292 $72,002816976 MIDFIRST BANK ..................................................................................................... $0 $2,291 $0 $2,291 $0832361 CREDIT UNION OF THE ROCKIES .......................................................................... $0 $2,286 $98,390 $2,286 $98,390830160 SC STUDENT LOAN CORP (TLP) ............................................................................ $0 $2,282 $152,192 $2,282 $152,192832647 FERGUSON FCU ..................................................................................................... $0 $2,279 $159,989 $2,279 $159,989829798 DAKOTA STAR FCU ................................................................................................ $0 $2,276 $71,093 $2,276 $71,093817313 CME FEDERAL CREDIT UNION ............................................................................... $0 $2,270 $165,954 $2,270 $165,954808814 FIRST NATIONAL BANK OF BELLEVUE ................................................................... $0 $2,262 $88,411 $2,262 $88,411832601 SAFE CREDIT UNION ............................................................................................. $0 $2,257 $202,522 $2,257 $202,522

149

806949 DUTTON STATE BANK ............................................................................................ $0 $2,257 $94,591 $2,257 $94,591821876 FIRST STATE BANK ................................................................................................ $0 $2,255 $90,379 $2,255 $90,379828793 METRO NORTH FCU ............................................................................................... $0 $2,254 $2,254 $0829938 MAINE SAVINGS FCU ............................................................................................. $0 $2,247 $2,247 $0833014 CORRY AREA SCHOOLS FCU ................................................................................. $0 $2,243 $2,243 $0810816 FIRST TEXAS BANK ................................................................................................ $0 $2,223 $120,660 $2,223 $120,660825104 WATERMARK CREDIT UNION ................................................................................. $0 $2,215 $151,282 $2,215 $151,282826936 NORTHEAST CREDIT UNION ................................................................................... $0 $2,214 $105,058 $2,214 $105,058833697 RIVERSIDE BEARER COUNTY FCU ......................................................................... $0 $2,211 $91,776 $2,211 $91,776833369 MINNEQUA WORKS CREDIT UNION ........................................................................ $0 $2,196 $75,185 $2,196 $75,185813390 KENNAMETAL EMPLOYEES FEDERAL CREDIT ........................................................ $0 $2,193 $169,010 $2,193 $169,010831078 MEMBERS UNITED CU ........................................................................................... $0 $2,192 $147,467 $2,192 $147,467834022 OHIO CATHOLIC FCU ............................................................................................. $0 $2,189 $107,649 $2,189 $107,649829845 AMERICAN CREDIT UNION—MILWAUKEE .............................................................. $0 $2,177 $141,471 $2,177 $141,471833966 UWSP CREDIT UNION ............................................................................................ $0 $2,177 $2,177 $0811577 AMERICAN LAKE CREDIT UNION ........................................................................... $0 $2,172 $172,133 $2,172 $172,133824825 GOLDEN PLAINS CREDIT UNION ............................................................................ $0 $2,168 $83,824 $2,168 $83,824832363 ST CLARES HOSPITAL EFCU .................................................................................. $0 $2,167 $167,131 $2,167 $167,131822051 SABATTUS REGIONAL CREDIT UNION .................................................................... $0 $2,165 $136,885 $2,165 $136,885833949 ALLIANCE FCU ....................................................................................................... $0 $2,160 $78,958 $2,160 $78,958810439 FARMERS STATE BANK .......................................................................................... $0 $2,156 $116,496 $2,156 $116,496826820 JUSTICE FEDERAL CREDIT UNION ......................................................................... $0 $2,151 $133,065 $2,151 $133,065805593 PEOPLES BANK OF ELKTON ................................................................................... $0 $2,146 $73,092 $2,146 $73,092832065 URW 831 COMMUNITY FCU .................................................................................. $0 $2,143 $86,591 $2,143 $86,591805899 EATON FEDERAL SAVINGS BANK ........................................................................... $0 $2,143 $112,968 $2,143 $112,968817575 ALLIANCE CREDIT UNION ...................................................................................... $0 $2,142 $148,363 $2,142 $148,363819625 PORT CREDIT UNION ............................................................................................. $0 $2,137 $174,307 $2,137 $174,307833947 YORK EDUCATION FCU .......................................................................................... $0 $2,132 $148,918 $2,132 $148,918834130 ST. PAUL FCU ........................................................................................................ $0 $2,131 $138,159 $2,131 $138,159819918 STATE BANK OF CROSS PLAINS ............................................................................ $0 $2,120 $0 $2,120 $0830502 INFINITY FEDERAL CREDIT UNION ......................................................................... $0 $2,118 $2,118 $0832164 ENER G COMM FEDERAL CREDIT UNION .............................................................. $0 $2,115 $109,966 $2,115 $109,966832805 OUR FAMILY FEDERAL CREDIT UNION .................................................................. $0 $2,115 $2,115 $0824716 UNITY ONE FEDERAL CREDIT UNION .................................................................... $0 $2,115 $107,595 $2,115 $107,595828970 HAZELTON SCHOOL EMPLOYEES CR UN ............................................................... $0 $2,109 $2,109 $0832755 MEDICAL EMPLOYEES CU ..................................................................................... $0 $2,108 $171,198 $2,108 $171,198833000 PBC CU ................................................................................................................. $0 $2,107 $124,106 $2,107 $124,106820879 RAY COOPERATIVE CREDIT UNION ........................................................................ $0 $2,100 $37,661 $2,100 $37,661832878 EAST TRAVERSE CATHOLIC FCU ........................................................................... $0 $2,099 $136,613 $2,099 $136,613832794 COMMUNITY FINANCIAL CREDIT UNION ................................................................ $0 $2,097 $146,735 $2,097 $146,735

150

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

832473 COLUMBINE FEDERAL CREDIT UNION ................................................................... $0 $2,096 $89,492 $2,096 $89,492832166 KELLOGG COMPANY EFCU ..................................................................................... $0 $2,095 $129,698 $2,095 $129,698832232 BAY AREA CREDIT UNION INC .............................................................................. $0 $2,090 $77,942 $2,090 $77,942832910 CITY CREDIT UNION .............................................................................................. $0 $2,089 $139,957 $2,089 $139,957833493 FIRST LOCKHART NATIONAL BANK ........................................................................ $0 $2,079 $81,717 $2,079 $81,717816128 DENVER FIRE DEPT FCU ....................................................................................... $0 $2,070 $122,346 $2,070 $122,346833338 WESTEX FEDERAL CREDIT UNION ......................................................................... $0 $2,064 $101,657 $2,064 $101,657805088 FARMERS STATE BANK & TRUST CO .................................................................... $0 $2,061 $145,210 $2,061 $145,210832236 LOS ANGELES FEDERAL CREDIT UNION ................................................................ $0 $2,058 $188,860 $2,058 $188,860810004 FARMERS NAT’L BANK OF NEWVILLE .................................................................... $0 $2,040 $129,162 $2,040 $129,162825043 SUPERIOR FCU ...................................................................................................... $0 $2,038 $101,049 $2,038 $101,049833547 AMERICAN 1 FCU .................................................................................................. $0 $2,035 $132,903 $2,035 $132,903820891 NECEDAH BANK ..................................................................................................... $0 $2,034 $107,914 $2,034 $107,914813157 PENINSULA FEDERAL CREDIT UNION .................................................................... $0 $2,032 $0 $2,032 $0826512 ADVANTAGE BANK ................................................................................................. $0 $2,027 $233,167 $2,027 $233,167834252 LINDENWOOD UNIVERSITY ..................................................................................... $0 $2,021 $0 $2,021 $0833215 GREAT FALLS REGIONAL FCU ................................................................................ $0 $2,017 $120,745 $2,017 $120,745832444 NORTHWEST ADVENTIST FCU ................................................................................ $0 $2,007 $71,753 $2,007 $71,753814435 JAX FEDERAL CREDIT UNION ................................................................................ $0 $2,006 $132,300 $2,006 $132,300808758 THE FARMERS & MERCHANTS BANK .................................................................... $0 $2,000 $207,362 $2,000 $207,362833811 TYCO FCU .............................................................................................................. $0 $1,991 $58,865 $1,991 $58,865827438 MIDLAND FEDERAL S&L ........................................................................................ $0 $1,990 $124,214 $1,990 $124,214806232 CLINTON STATE BANK ........................................................................................... $0 $1,985 $89,024 $1,985 $89,024831120 INNER LAKES FEDERAL CREDIT UNION ................................................................. $0 $1,981 $93,425 $1,981 $93,425833381 LOS ANGELES POLICE FCU ................................................................................... $0 $1,980 $149,418 $1,980 $149,418818576 OAHE FEDERAL CREDIT UNION ............................................................................. $0 $1,972 $109,428 $1,972 $109,428833467 GENCO FEDERAL CREDIT UNION ........................................................................... $0 $1,970 $64,537 $1,970 $64,537832227 SKY FCU ................................................................................................................ $0 $1,968 $132,486 $1,968 $132,486824919 CATHOLIC FEDERAL CREDIT UNION ...................................................................... $0 $1,968 $1,968 $0823823 ANNANDALE STATE BANK ...................................................................................... $0 $1,962 $68,506 $1,962 $68,506807025 WESTERN BANK OF WOLF POINT .......................................................................... $0 $1,949 $1,949 $0833800 CONCORD DIABLO FCU ......................................................................................... $0 $1,949 $156,110 $1,949 $156,110821561 HAMLER STATE BANK ............................................................................................ $0 $1,947 $132,904 $1,947 $132,904

151

825489 THE SAVINGS BANK ............................................................................................... $0 $1,929 $129,015 $1,929 $129,015822613 CENTRAL PA SAVINGS ASSOCIATION ..................................................................... $0 $1,922 $98,465 $1,922 $98,465833692 PARTNERS FINANCIAL FCU .................................................................................... $0 $1,919 $109,416 $1,919 $109,416831596 APL FEDERAL CREDIT UNION ................................................................................ $0 $1,909 $96,746 $1,909 $96,746826625 NORTHLAND AREA FEDERAL CREDIT UNION ......................................................... $0 $1,904 $1,904 $0830301 RIVER CITY FEDERAL CREDIT UNION .................................................................... $0 $1,891 $90,561 $1,891 $90,561816874 SOUTHEASTERN FEDERAL CREDIT UNION ............................................................. $0 $1,881 $121,487 $1,881 $121,487827930 FIRST DAY FINANCIAL CU ..................................................................................... $0 $1,879 $140,923 $1,879 $140,923819655 US EMPLOYEES OC FCU ....................................................................................... $0 $1,877 $75,703 $1,877 $75,703810738 AMEGY BANK NA ................................................................................................... $0 $1,867 $130,884 $1,867 $130,884831750 BEACH MUNICIPAL EFCU ...................................................................................... $0 $1,863 $121,304 $1,863 $121,304827044 COMMUNITY FIRST BANK ...................................................................................... $0 $1,861 $1,861 $0832474 ALABAMA TELCO CREDIT UNION ........................................................................... $0 $1,853 $119,052 $1,853 $119,052804743 M&I BANK ............................................................................................................. $0 $1,849 $36,974 $1,849 $36,974826931 FIRST MIDWEST BANK OF POPLAR BLUFF ............................................................ $0 $1,849 $45,683 $1,849 $45,683810123 M&T BANK EDUCATIONAL LENDING ...................................................................... $0 $1,839 $1,839 $0832518 FIRST COMMERCIAL BANK N A ............................................................................. $0 $1,833 $0 $1,833 $0833343 BLUEBONNET FEDERAL CREDIT UNION ................................................................. $0 $1,822 $123,404 $1,822 $123,404829836 NORTHWEST GEORGIA CREDIT UNION .................................................................. $0 $1,820 $133,964 $1,820 $133,964833059 OKLAHOMA STUDENT LOAN AUTHORITY ................................................................ $0 $1,812 $100,840 $1,812 $100,840814827 AIR ACADEMY FCU ................................................................................................ $0 $1,806 $50,532 $1,806 $50,532832298 DELTA COUNTY FCU .............................................................................................. $0 $1,779 $79,742 $1,779 $79,742828737 COUNTYWIDE FEDERAL CREDIT UNION ................................................................. $0 $1,775 $63,529 $1,775 $63,529832814 MALHEUR FEDERAL CREDIT UNION ...................................................................... $0 $1,773 $96,657 $1,773 $96,657832266 ABNB FCU ............................................................................................................. $0 $1,772 $125,053 $1,772 $125,053833532 SHAMROCK BANK .................................................................................................. $0 $1,770 $77,567 $1,770 $77,567826830 FIRST SOUTH CU ................................................................................................... $0 $1,764 $126,395 $1,764 $126,395830989 LAKESIDE CREDIT UNION ...................................................................................... $0 $1,758 $122,284 $1,758 $122,284831978 MICHIGAN CATHOLIC CU ....................................................................................... $0 $1,755 $60,044 $1,755 $60,044833476 PLYMOUTH COUNTY TEACHERS FCU ..................................................................... $0 $1,754 $128,712 $1,754 $128,712810398 ANDES STATE BANK .............................................................................................. $0 $1,745 $77,571 $1,745 $77,571815584 NORTH ALABAMA EDUCATORS CU ........................................................................ $0 $1,742 $54,976 $1,742 $54,976832276 SEASONS FCU ....................................................................................................... $0 $1,734 $90,134 $1,734 $90,134826094 MONTANA FIRST CREDIT UNION ............................................................................ $0 $1,727 $1,727 $0817326 HANCOCK COUNTY SAVINGS BANK FSB ................................................................ $0 $1,720 $2,564 $1,720 $2,564832312 ROME TEACHERS FCU ........................................................................................... $0 $1,719 $102,479 $1,719 $102,479832700 ROANOKE COUNTY SCHOOL EFCU ........................................................................ $0 $1,718 $98,714 $1,718 $98,714814657 LOUISIANA CATHOLIC FCU .................................................................................... $0 $1,707 $70,109 $1,707 $70,109827945 MASON NATIONAL BANK ........................................................................................ $0 $1,701 $52,907 $1,701 $52,907815517 MEMBERS FIRST CU OF FLORIDA ......................................................................... $0 $1,694 $104,428 $1,694 $104,428

152

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

832162 BUFFALO FIRE DEPARTMENT FCU ......................................................................... $0 $1,691 $101,101 $1,691 $101,101818163 COMTRUST FCU ..................................................................................................... $0 $1,689 $175,823 $1,689 $175,823806947 DANIELS-SHERIDAN FCU ....................................................................................... $0 $1,683 $46,113 $1,683 $46,113831556 MCCONE COUNTY FCU .......................................................................................... $0 $1,674 $72,554 $1,674 $72,554804078 HOME STATE BANK ............................................................................................... $0 $1,673 $70,115 $1,673 $70,115831764 GREATER MILWAUKEE CU ..................................................................................... $0 $1,673 $121,972 $1,673 $121,972818170 FARGO VA FEDERAL CREDIT UNION ...................................................................... $0 $1,672 $62,936 $1,672 $62,936818120 FERGUS COUNTY FEDERAL CREDIT UNION ........................................................... $0 $1,671 $80,421 $1,671 $80,421832735 ARLINGTON VIRGINIA FCU ..................................................................................... $0 $1,662 $78,865 $1,662 $78,865829529 VAN CORTLANDT COOP FCU ................................................................................. $0 $1,643 $95,774 $1,643 $95,774824001 WEST SPRINGFIELD FCU ....................................................................................... $0 $1,641 $87,004 $1,641 $87,004823366 HEW EMPLOYEES FCU ........................................................................................... $0 $1,641 $5,013 $1,641 $5,013830918 TURTLE CREEK FEDERAL CREDIT UNION .............................................................. $0 $1,640 $85,299 $1,640 $85,299832628 HOPKINS SCHOOLS CREDIT UNION ....................................................................... $0 $1,633 $84,194 $1,633 $84,194834139 FRANKLIN COUNTY TEACHERS CU ........................................................................ $0 $1,633 $137,025 $1,633 $137,025833481 COSDEN EMPLOYEES FEDERAL CREDIT UNI ......................................................... $0 $1,631 $48,583 $1,631 $48,583813776 VERMONT STATE EMPLOYEES CREDIT UNIO ......................................................... $0 $1,630 $163,517 $1,630 $163,517832468 COMMUNITY EDUCATORS CREDIT UNION ............................................................. $0 $1,629 $102,193 $1,629 $102,193832860 TELEPHONE CREDIT UNION OF NEW HAMPS ........................................................ $0 $1,626 $112,165 $1,626 $112,165833823 HIGHGROVE COMMUNITY FCU ............................................................................... $0 $1,624 $96,336 $1,624 $96,336833706 COMO NORTHTOWN COMM CU ............................................................................. $0 $1,623 $58,720 $1,623 $58,720832564 SCHOOL DISTRICT #3 FCU .................................................................................... $0 $1,618 $64,738 $1,618 $64,738814667 UNISTAR FEDERAL CREDIT UNION ........................................................................ $0 $1,617 $90,202 $1,617 $90,202832321 YAVAPAI FEDERAL CREDIT UNION ......................................................................... $0 $1,615 $42,992 $1,615 $42,992818365 ATLANTIC COAST CREDIT UNION ........................................................................... $0 $1,612 $120,309 $1,612 $120,309833826 HARLINGEN AREA TEACHERS FCU ........................................................................ $0 $1,612 $65,316 $1,612 $65,316833782 BOWDOINHAM FCU ................................................................................................ $0 $1,608 $61,769 $1,608 $61,769819311 BAY ATLANTIC FCU ............................................................................................... $0 $1,605 $87,068 $1,605 $87,068829217 BANK OF SALEM .................................................................................................... $0 $1,601 $40,369 $1,601 $40,369832670 EPA CREDIT UNION ............................................................................................... $0 $1,594 $70,431 $1,594 $70,431816570 MIDSOUTH FEDERAL CREDIT UNION ..................................................................... $0 $1,587 $94,114 $1,587 $94,114832941 PENNSTAR FCU ..................................................................................................... $0 $1,559 $1,559 $0828512 EMERALD GROUP CU INC ..................................................................................... $0 $1,558 $75,318 $1,558 $75,318

153

828080 WCTA FEDERAL CREDIT UNION ............................................................................. $0 $1,557 $250,377 $1,557 $250,377810723 BIG SPRING EDUCATION EFCU .............................................................................. $0 $1,556 $77,018 $1,556 $77,018818831 AMERICA’S CHRISTIAN CREDIT UNION .................................................................. $0 $1,552 $94,788 $1,552 $94,788832909 CASCADE COMMUNITY FCU .................................................................................. $0 $1,551 $91,351 $1,551 $91,351832424 COMMUNITY 1 FCU ............................................................................................... $0 $1,544 $61,988 $1,544 $61,988832463 HARVEST FEDERAL CU .......................................................................................... $0 $1,540 $59,458 $1,540 $59,458811938 ASSOCIATED BANK NA .......................................................................................... $0 $1,536 $1,536 $0810522 ROBERTS COUNTY NATIONAL BANK OF SIS .......................................................... $0 $1,529 $96,395 $1,529 $96,395827544 CONTINENTAL NATIONAL BANK ............................................................................. $0 $1,529 $60,745 $1,529 $60,745833521 STRUTHERS FCU ................................................................................................... $0 $1,528 $61,891 $1,528 $61,891830673 COUNTY CREDIT UNION ........................................................................................ $0 $1,527 $95,943 $1,527 $95,943833516 SUN PACIFIC FEDERAL CREDIT UNION ................................................................. $0 $1,526 $113,905 $1,526 $113,905832827 CHESHIRE COUNTY FCU ........................................................................................ $0 $1,525 $53,546 $1,525 $53,546833379 FORT SNELLING FCU ............................................................................................. $0 $1,519 $85,935 $1,519 $85,935833023 TELEPHONE WORKERS CREDIT UNION .................................................................. $0 $1,519 $102,622 $1,519 $102,622832108 KEMBA FINANCIAL CU ........................................................................................... $0 $1,519 $156,222 $1,519 $156,222827064 LA CAPITOL FEDERAL CREDIT UNION ................................................................... $0 $1,517 $108,630 $1,517 $108,630834138 WELLS FARGO ELT CALIFORNIA DENTAL A ........................................................... $0 $1,513 $1,513 $0834122 MOUNTAIN HIGH FCU ............................................................................................ $0 $1,511 $86,267 $1,511 $86,267833391 COOS EDUCATORS FEDERAL CREDIT UNION ........................................................ $0 $1,508 $40,780 $1,508 $40,780822169 FIRST FEDERAL SAVINGS & LOAN ASSO ............................................................... $0 $1,505 $37,454 $1,505 $37,454822927 ADVANTAGE BANK ................................................................................................. $0 $1,501 $19,348 $1,501 $19,348819591 CELCO FEDERAL CREDIT UNION ........................................................................... $0 $1,493 $64,772 $1,493 $64,772831783 COMMUNITY CHOICE CREDIT UNION .................................................................... $0 $1,493 $26,776 $1,493 $26,776828811 GREATER TEXAS FCU ............................................................................................ $0 $1,492 $105,370 $1,492 $105,370830500 GRANT COUNTY COMMUNITY FCU ........................................................................ $0 $1,492 $71,864 $1,492 $71,864833829 MPO FCU ............................................................................................................... $0 $1,492 $96,850 $1,492 $96,850833234 MARTIN FEDERAL CREDIT UNION .......................................................................... $0 $1,486 $58,788 $1,486 $58,788833550 THE RICHMOND POSTAL CU .................................................................................. $0 $1,483 $113,406 $1,483 $113,406827781 OAK TRUST CU ...................................................................................................... $0 $1,472 $117,060 $1,472 $117,060819366 FIRST STATE BANK OF CLAREMONT ...................................................................... $0 $1,469 $38,875 $1,469 $38,875825247 EASTERN PITTSBURGH BELL FEDERAL C U .......................................................... $0 $1,466 $79,482 $1,466 $79,482832925 KONE EMPLOYEES CREDIT UNION ........................................................................ $0 $1,460 $111,006 $1,460 $111,006833409 HIGH PEAKS FCU ................................................................................................... $0 $1,460 $52,654 $1,460 $52,654831888 DACOTAH FEDERAL CREDIT UNION ....................................................................... $0 $1,457 $82,810 $1,457 $82,810833473 POINT LOMA CREDIT UNION .................................................................................. $0 $1,453 $90,270 $1,453 $90,270812091 SOUTH JERSEY FCU .............................................................................................. $0 $1,450 $1,450 $0815469 FAMILY SECURITY CREDIT UNION ......................................................................... $0 $1,446 $116,606 $1,446 $116,606826236 ALLIANCE CREDIT UNION ...................................................................................... $0 $1,440 $94,321 $1,440 $94,321828760 M & T BANK EDUCATIONAL LENDING ................................................................... $0 $1,418 $1,418 $0

154

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

806562 F & M BANK OF SPRINGFIELD MORGAN O ........................................................... $0 $1,412 $49,773 $1,412 $49,773826201 POSTAL FAMILY FEDERAL CREDIT UNION ............................................................. $0 $1,411 $113,771 $1,411 $113,771817766 RICHLAND FEDERAL CREDIT UNION ...................................................................... $0 $1,410 $79,128 $1,410 $79,128832239 MIDWEST UNITED CREDIT UNION .......................................................................... $0 $1,407 $64,918 $1,407 $64,918813618 FREEPORT STATE BANK—STEVE NOTCH .............................................................. $0 $1,401 $72,757 $1,401 $72,757834032 TITAN FCU ............................................................................................................. $0 $1,399 $105,301 $1,399 $105,301833219 FIRST BRISTOL FEDERAL CREDIT UNION .............................................................. $0 $1,396 $63,866 $1,396 $63,866833696 CALAIS FEDERAL S&L ........................................................................................... $0 $1,380 $140,864 $1,380 $140,864833716 LEHIGH VALLEY FCU ............................................................................................. $0 $1,378 $75,060 $1,378 $75,060818644 WESTERN DAKOTA BANK ....................................................................................... $0 $1,377 $50,252 $1,377 $50,252832280 MEMBERS CREDIT UNION ..................................................................................... $0 $1,374 $197,504 $1,374 $197,504833427 SARASOTA COASTAL CU ........................................................................................ $0 $1,373 $86,411 $1,373 $86,411833539 BAYOU FEDERAL CREDIT UNION ........................................................................... $0 $1,370 $32,153 $1,370 $32,153832261 MCAS BEAUFORT CREDIT UNION .......................................................................... $0 $1,348 $67,064 $1,348 $67,064834008 HIGH DESERT FCU ................................................................................................ $0 $1,341 $42,362 $1,341 $42,362831966 TRANSMISSION BUILDERS FEDERAL CREDI .......................................................... $0 $1,337 $36,846 $1,337 $36,846834031 NEIGHBORS FCU ................................................................................................... $0 $1,328 $38,983 $1,328 $38,983833559 N. MASS TELEPHONE WORKERS CU ..................................................................... $0 $1,328 $91,035 $1,328 $91,035830400 COLONIAL SAVINGS F A ........................................................................................ $0 $1,324 $76,290 $1,324 $76,290833747 ATLANTIC FCU ....................................................................................................... $0 $1,321 $133,331 $1,321 $133,331810446 FARMERS STATE BANK .......................................................................................... $0 $1,313 $1,313 $0833635 CENTRAL STAR CREDIT UNION ............................................................................. $0 $1,313 $54,394 $1,313 $54,394805737 CASCO FEDERAL CREDIT UNION ........................................................................... $0 $1,298 $97,687 $1,298 $97,687831997 BANK OF EASTERN IDAHO ..................................................................................... $0 $1,295 $162,380 $1,295 $162,380832521 COLLEGEDALE CREDIT UNION ............................................................................... $0 $1,295 $67,659 $1,295 $67,659833303 BULLDOG FEDERAL CREDIT UNION ....................................................................... $0 $1,293 $72,072 $1,293 $72,072833437 1ST UNIVERSITY CU GARY PARKER ...................................................................... $0 $1,291 $1,291 $0833775 EAST OHIO UNITED METHODIST CONF CU ............................................................ $0 $1,288 $80,458 $1,288 $80,458828845 FBC FCU ................................................................................................................ $0 $1,283 $1,283 $0834254 FIFTH THIRD ELT STUDENT LEND WORKS ............................................................. $0 $1,256 $0 $1,256 $0825033 MN HIGHER EDUCATION SERVICES OFFICE .......................................................... $0 $1,254 $127,227 $1,254 $127,227828482 SECURITY BANK .................................................................................................... $0 $1,254 $1,254 $0824122 WISCOR CREDIT UNION ......................................................................................... $0 $1,250 $75,351 $1,250 $75,351

155

810488 FT RANDALL FEDERAL CREDIT UNION .................................................................. $0 $1,250 $76,502 $1,250 $76,502831508 CONSUMERS FEDERAL CREDIT UNION .................................................................. $0 $1,243 $45,209 $1,243 $45,209832394 ACCO PRINCETON FCU .......................................................................................... $0 $1,242 $91,554 $1,242 $91,554815822 ALCOA PITTSBURGH FCU ...................................................................................... $0 $1,231 $81,865 $1,231 $81,865833144 KEY BANK NA ........................................................................................................ $0 $1,226 $1,635,695 $1,226 $1,635,695821866 M&I BANK FSB ...................................................................................................... $0 $1,224 $72,137 $1,224 $72,137833039 AMALGAMATED CREDIT UNION .............................................................................. $0 $1,221 $85,125 $1,221 $85,125823688 FIRST SECURITY BANK OF ROUNDUP ................................................................... $0 $1,214 $63,200 $1,214 $63,200800023 WACHOVIA BANK NA ............................................................................................. $0 $1,209 $1,209 $0818749 FIRST TRUST AND SAVINGS BANK ........................................................................ $0 $1,208 $66,302 $1,208 $66,302832344 PENOBSCOT FCU ................................................................................................... $0 $1,206 $86,781 $1,206 $86,781833177 U A L U FCU ......................................................................................................... $0 $1,199 $1,199 $0832121 EXTRACO BANKS N.A$0 ........................................................................................ $1,198 $59,414 $1,198 $59,414810485 FIRST STATE BANK OF WARNER ........................................................................... $0 $1,195 $43,454 $1,195 $43,454801943 SPACE AGE FEDERAL CREDIT UNION .................................................................... $0 $1,190 $82,933 $1,190 $82,933833470 SANTA ANA FCU .................................................................................................... $0 $1,185 $77,799 $1,185 $77,799832146 TOLEDO METRO FEDERAL CREDIT UNION ............................................................. $0 $1,185 $81,869 $1,185 $81,869815953 SUNRISE BANK DAKOTA ........................................................................................ $0 $1,184 $60,432 $1,184 $60,432830713 WOODSTONE CREDIT UNION ................................................................................. $0 $1,182 $67,877 $1,182 $67,877828873 WASHINGTON TELEPHONE FCU ............................................................................. $0 $1,182 $83,943 $1,182 $83,943829535 WOLF POINT FEDERAL CREDIT UNION .................................................................. $0 $1,181 $49,561 $1,181 $49,561834080 FULTON BANK ........................................................................................................ $0 $1,177 $51,315 $1,177 $51,315824700 SANBORN SAVINGS BANK ..................................................................................... $0 $1,175 $18,938 $1,175 $18,938810444 FARMERS STATE BANK .......................................................................................... $0 $1,173 $0 $1,173 $0818417 LACAMAS COMMUNITY CREDIT UNION .................................................................. $0 $1,172 $54,712 $1,172 $54,712806268 EASTWOOD BANK—ROCHESTER ........................................................................... $0 $1,171 $0 $1,171 $0833690 NORTHERN LIGHTS FCU ........................................................................................ $0 $1,171 $1,171 $0825297 CORTRUST BANK ................................................................................................... $0 $1,165 $1,165 $0833629 CHOCOLATE BAYOU COMM FCU ........................................................................... $0 $1,161 $71,170 $1,161 $71,170832851 KNOXVILLE POST OFFICE CREDIT UNION .............................................................. $0 $1,155 $33,554 $1,155 $33,554832972 GESA CU ............................................................................................................... $0 $1,146 $61,501 $1,146 $61,501804538 FIRST NATIONAL BANK OF OLATHE ....................................................................... $0 $1,146 $1,146 $0832297 SOUTH CAROLINA TELCO FCU ............................................................................... $0 $1,137 $48,947 $1,137 $48,947833468 MEADOWS CREDIT UNION ..................................................................................... $0 $1,136 $65,996 $1,136 $65,996832419 STAMFORD CREDIT UNION INC ............................................................................. $0 $1,133 $100,871 $1,133 $100,871803968 DUBUQUE BANK & TRUST COMPANY .................................................................... $0 $1,132 $352 $1,132 $352832813 KASTCO CREDIT UNION ......................................................................................... $0 $1,121 $1,121 $0824210 ITT EMPLOYEES (FT WAYNE DIV) FCU .................................................................. $0 $1,119 $110,202 $1,119 $110,202832969 JACKSON CITY COUNTY CU ................................................................................... $0 $1,117 $40,103 $1,117 $40,103813509 M & T BANK EDUCATIONAL LENDING ................................................................... $0 $1,113 $31,832 $1,113 $31,832

156

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

811010 WEST TEXAS STATE BANK ..................................................................................... $0 $1,112 $5,829 $1,112 $5,829830849 ST VRAIN VALLEY CREDIT UNION ......................................................................... $0 $1,110 $105,227 $1,110 $105,227833060 CHELSEA EMPLOYEES FCU ................................................................................... $0 $1,109 $66,554 $1,109 $66,554805182 UNION BANK .......................................................................................................... $0 $1,105 $73,020 $1,105 $73,020834038 OAK BANK ............................................................................................................. $0 $1,102 $41,301 $1,102 $41,301833577 AMERICA FAMILY FCU ........................................................................................... $0 $1,097 $6,625 $1,097 $6,625833370 SCHOOL SYSTEMS FEDERAL CREDIT UNION ......................................................... $0 $1,096 $110,468 $1,096 $110,468832896 CWA LONG ISLAND FCU ........................................................................................ $0 $1,095 $84,543 $1,095 $84,543809444 DOWNINGTOWN NATIONAL BANK ........................................................................... $0 $1,093 $1,093 $0834200 ARMSTRONG ASSOCIATES FCU ............................................................................. $0 $1,087 $94,680 $1,087 $94,680833606 LEADERS CREDIT UNION ....................................................................................... $0 $1,086 $32,225 $1,086 $32,225819542 THINK FCU ............................................................................................................. $0 $1,080 $1,080 $0832336 CONSUMERS PROFESSIONAL CU ........................................................................... $0 $1,072 $70,252 $1,072 $70,252812141 FARMERS EXCHANGE BANK .................................................................................. $0 $1,066 $44,946 $1,066 $44,946810886 GRAHAM NATIONAL BANK ..................................................................................... $0 $1,064 $42,512 $1,064 $42,512828033 FIRST NATIONAL BANK OF LEESPORT ................................................................... $0 $1,063 $0 $1,063 $0833272 ALAMEDA CREDIT UNION ...................................................................................... $0 $1,054 $32,197 $1,054 $32,197832971 BEACON FEDERAL ................................................................................................. $0 $1,053 $69,174 $1,053 $69,174829797 SENTINEL FEDERAL CREDIT UNION ....................................................................... $0 $1,045 $0 $1,045 $0818491 PEOPLES STATE BANK ........................................................................................... $0 $1,045 $1,045 $0832828 ALTOONA VEEDER ROOT FCU ................................................................................ $0 $1,020 $1,020 $0800016 FIRST EDUCATORS CREDIT UNION ........................................................................ $0 $1,018 $79,279 $1,018 $79,279806262 FARMERS & MERCHANTS STATE BANK OF N ....................................................... $0 $1,005 $60,158 $1,005 $60,158819915 ASSOCIATED BANK NA .......................................................................................... $0 $1,005 $1,005 $0822318 CABOT & NOI EMPLOYEES CREDIT UNION ........................................................... $0 $997 $41,267 $997 $41,267833855 BETHEX FCU .......................................................................................................... $0 $996 $996 $0833092 KEY BANK NA ........................................................................................................ $0 $994 $1,487,965 $994 $1,487,965817071 GREATER NORWALK AREA CREDIT UNION ............................................................ $0 $993 $61,969 $993 $61,969819665 FIRST LIGHT FCU ................................................................................................... $0 $991 $58,136 $991 $58,136833429 PARK COMMUNITY FCU ......................................................................................... $0 $988 $58,697 $988 $58,697833448 CSC EMPLOYEE’S FEDERAL CREDIT UNION .......................................................... $0 $987 $106,911 $987 $106,911832284 REMINGTON ARMS FCU ......................................................................................... $0 $978 $68,144 $978 $68,144801897 FITZSIMONS COMMUNITY FCU .............................................................................. $0 $977 $59,241 $977 $59,241

157

806345 THE FIRST NATIONAL BANK OF HENNING ............................................................. $0 $973 $30,250 $973 $30,250833862 NORTH CAROLINA LOCAL GOVERNMENT EFC ....................................................... $0 $972 $29,959 $972 $29,959828871 SAGELINK CU ........................................................................................................ $0 $972 $41,274 $972 $41,274802968 REGIONS BANK ...................................................................................................... $0 $972 $972 $0832639 LIBERTY ALLIANCE FCU ........................................................................................ $0 $969 $91,824 $969 $91,824834155 PETIT JEAN STATE BANK ....................................................................................... $0 $969 $0 $969 $0833718 GLENDALE AREA SCHOOL FCU .............................................................................. $0 $966 $23,246 $966 $23,246815849 FARMINGTON SAVINGS BANK ................................................................................ $0 $965 $965 $0806548 STATE BANK OF LAKE PARK .................................................................................. $0 $960 $31,625 $960 $31,625831356 UNITED METHODIST FIRST CHOICE FCU ............................................................... $0 $956 $956 $0828386 DEACON CU ........................................................................................................... $0 $955 $32,590 $955 $32,590833871 STANDARD STEEL EFCU ........................................................................................ $0 $953 $70,419 $953 $70,419833129 ACCO YORK FCU ................................................................................................... $0 $951 $65,251 $951 $65,251832528 NORTHWEST RESOURCE FCU ................................................................................ $0 $944 $42,343 $944 $42,343832514 MISSION PARTNERS EMPLOYEES CREDIT U ......................................................... $0 $942 $72,822 $942 $72,822832608 CTECU ................................................................................................................... $0 $937 $33,086 $937 $33,086833894 MONONGAHELA VALLEY FCU ................................................................................. $0 $935 $53,405 $935 $53,405830632 SHARE ADVANTAGE CREDIT UNION ....................................................................... $0 $934 $78,581 $934 $78,581817132 WATERBURY CT TEACHERS FED CR UNION .......................................................... $0 $930 $3,750 $930 $3,750818185 ASSOCIATED BANK NA .......................................................................................... $0 $924 $924 $0832272 FLOWER CITY FCU ................................................................................................. $0 $918 $26,043 $918 $26,043830464 HEALTHCARE PLUS FED CREDIT UNION ................................................................ $0 $917 $917 $0832815 MONTCLAIR POSTAL EMP CU ................................................................................ $0 $917 $32,347 $917 $32,347813125 ALPENA ALCONA AREA CREDIT UNION ................................................................. $0 $914 $10,495 $914 $10,495833615 MEMBERS CHOICE CREDIT UNION ........................................................................ $0 $906 $64,552 $906 $64,552829820 GABRIELS COMMUNITY CU ................................................................................... $0 $903 $48,987 $903 $48,987832649 ALLEGHENY-KISKI POSTAL FCU ............................................................................. $0 $902 $902 $0817854 ARSENAL CREDIT UNION ....................................................................................... $0 $900 $11,250 $900 $11,250833777 NCPD FEDERAL CREDIT UNION ............................................................................. $0 $900 $53,583 $900 $53,583828286 MIDWEST PARTNERS FED CREDIT UNION ............................................................. $0 $899 $53,439 $899 $53,439833593 THE COCA-COLA CO FAMILY FCU ......................................................................... $0 $898 $33,678 $898 $33,678830640 NAPUS FEDERAL CREDIT UNION ........................................................................... $0 $897 $59,928 $897 $59,928833185 FIRST CLASS AMERICAN CREDIT UNION ............................................................... $0 $895 $37,817 $895 $37,817820213 TAHQUAMENON AREA CREDIT UNION ................................................................... $0 $893 $59,632 $893 $59,632804655 GREENSBURG STATE BANK ................................................................................... $0 $892 $54,716 $892 $54,716806260 MINNWEST BANK SOUTH ....................................................................................... $0 $892 $892 $0833404 STERLING BANK .................................................................................................... $0 $890 $890 $0806406 JANESVILLE STATE BANK ....................................................................................... $0 $887 $35,490 $887 $35,490816082 MUTUAL SAVINGS CREDIT UNION ......................................................................... $0 $883 $36,339 $883 $36,339831022 L. C. E. FEDERAL CREDIT UNION .......................................................................... $0 $880 $39,863 $880 $39,863

158

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

819203 COMMUNITY STATE BANK ..................................................................................... $0 $880 $36,078 $880 $36,078832770 MISSOURI VALLEY FEDERAL CREDIT UNIO ........................................................... $0 $877 $17,690 $877 $17,690831362 IEC FEDERAL CREDIT UNION ................................................................................ $0 $871 $48,952 $871 $48,952832857 UMASS/FIVE COLLEGE FCU ................................................................................... $0 $862 $80,997 $862 $80,997824924 OHIO UNIVERSITY CU ............................................................................................ $0 $858 $65,803 $858 $65,803819630 GREAT PLAINS BANK ............................................................................................. $0 $856 $47,388 $856 $47,388828311 THE UNION BANKING COMPANY ............................................................................ $0 $856 $56,202 $856 $56,202833776 SANTA MONICA SCHOOLS EMPLOYEES FEDE ........................................................ $0 $855 $44,027 $855 $44,027810492 IPSWICH STATE BANK ........................................................................................... $0 $855 $0 $855 $0833401 NORTHERN SCHOOLS FCU .................................................................................... $0 $854 $33,981 $854 $33,981827501 NEBRASKA STATE EMPLOYEES CREDIT UNI .......................................................... $0 $854 $50,397 $854 $50,397832533 GWINNETT FCU ...................................................................................................... $0 $854 $57,174 $854 $57,174802160 FAIRFIELD COUNTY CREDIT UNION ....................................................................... $0 $853 $71,553 $853 $71,553808616 THE FIRST NATIONAL BANK OF SYCAMORE .......................................................... $0 $847 $48,659 $847 $48,659816266 STATE BANK OF LUCAN ......................................................................................... $0 $847 $15,357 $847 $15,357832665 QUIMPER COMMUNITY FCU ................................................................................... $0 $843 $56,192 $843 $56,192827666 NORTH JERSEY FEDERAL CREDIT UNION .............................................................. $0 $841 $83,375 $841 $83,375818179 ASSOCIATED BANK NA .......................................................................................... $0 $840 $840 $0833929 GALLERIA CU ......................................................................................................... $0 $839 $30,995 $839 $30,995832392 WEYERHAEUSER CREDIT UNION ........................................................................... $0 $818 $61,320 $818 $61,320828925 MEM FCU .............................................................................................................. $0 $815 $63,927 $815 $63,927820970 SIOUX FALLS BELL FEDERAL CREDIT UNI ............................................................. $0 $811 $811 $0813411 COMMERCIAL BANK & TRUST OF PA .................................................................... $0 $808 $0 $808 $0833767 PARKS HERITAGE FCU ........................................................................................... $0 $807 $70,962 $807 $70,962833763 MINNWEST BANK SIOUX FALLS ............................................................................. $0 $806 $44,389 $806 $44,389832507 MERCER COUNTY NJ TEACHERS FCU ................................................................... $0 $803 $59,109 $803 $59,109822591 TIC FEDERAL CREDIT UNION ................................................................................. $0 $803 $66,704 $803 $66,704831640 STUDENT LOAN FUNDING US BANK ELT ............................................................... $0 $802 $13,889 $802 $13,889833450 SEMC FEDERAL CREDIT UNION ............................................................................. $0 $801 $58,702 $801 $58,702826526 RIVER VALLEY CREDIT UNION ............................................................................... $0 $800 $800 $0833665 CATSKILL REGIONAL FCU ...................................................................................... $0 $798 $65,600 $798 $65,600813953 ELKHORN FEDERAL CREDIT UNION ....................................................................... $0 $796 $796 $0833704 THE BANK OF THE RIO GRANDE NA ..................................................................... $0 $795 $38,745 $795 $38,745

159

832795 HOLY CROSS HOSPITAL EMPLOYEES’ CU ............................................................. $0 $792 $43,951 $792 $43,951830567 VACAP FEDERAL CREDIT UNION ........................................................................... $0 $787 $21,143 $787 $21,143806373 CENTER NATIONAL BANK ...................................................................................... $0 $787 $50,995 $787 $50,995807581 BANK OF NEW YORK ............................................................................................. $0 $787 $0 $787 $0832311 NYM FEDERAL CREDIT UNION ............................................................................... $0 $787 $41,858 $787 $41,858825280 AP FEDERAL CREDIT UNION .................................................................................. $0 $786 $41,969 $786 $41,969821891 OTERO FEDERAL CREDIT UNION ........................................................................... $0 $783 $46,518 $783 $46,518833362 FARMERS & MERCHANTS STATE BANK ................................................................. $0 $782 $782 $0833336 HINGHAM FEDERAL CREDIT UNION ....................................................................... $0 $779 $36,204 $779 $36,204823866 RAYTOWN-LEE’S SUMMIT COMMUNITY CRED ....................................................... $0 $777 $28,361 $777 $28,361817876 ARKANSAS EMPLOYEES FCU ................................................................................. $0 $775 $45,635 $775 $45,635825582 NJ GATEWAY FEDERAL CREDIT UNION .................................................................. $0 $772 $52,719 $772 $52,719834054 ACCESS CU ........................................................................................................... $0 $770 $19,703 $770 $19,703806541 STATE BANK OF BIRD ISLAND ............................................................................... $0 $766 $45,966 $766 $45,966820136 GREATER ALLIANCE FCU ....................................................................................... $0 $765 $765 $0820198 FIRST STATE BANK OF MIDDLEBURY .................................................................... $0 $764 $152,108 $764 $152,108817718 GLOUCESTER COUNTY FSB ................................................................................... $0 $764 $40,123 $764 $40,123833951 EMSBLA CU ........................................................................................................... $0 $761 $38,437 $761 $38,437834240 US BANK ELT COLLEGIATE SOLUTIONS ................................................................. $0 $760 $84,227 $760 $84,227833845 HTM AREA CU ....................................................................................................... $0 $758 $38,831 $758 $38,831834175 FIRST FEDERAL ..................................................................................................... $0 $758 $758 $0832526 ADVANTIS CU ........................................................................................................ $0 $757 $39,591 $757 $39,591832308 LEWISTON MUNICIPAL FEDERAL CREDIT U ........................................................... $0 $753 $54,090 $753 $54,090832761 ALHAMBRA CREDIT UNION .................................................................................... $0 $752 $0 $752 $0832489 ALABAMA TEACHERS CU ....................................................................................... $0 $748 $40,773 $748 $40,773832659 ALLEGANY COMMUNITY FCU ................................................................................. $0 $746 $45,322 $746 $45,322813989 BANK OF ROTHVILLE ............................................................................................. $0 $743 $8,000 $743 $8,000832246 LOUDOUN CREDIT UNION ...................................................................................... $0 $739 $26,950 $739 $26,950820003 THE CORN CITY STATE BANK ................................................................................ $0 $736 $29,855 $736 $29,855833383 ROHM & HAAS MONUMENT AREA FCU ................................................................. $0 $732 $62,069 $732 $62,069814151 SAINT AGATHA FEDERAL CREDIT UNION ............................................................... $0 $731 $731 $0819119 EAST RIVER FCU ................................................................................................... $0 $729 $729 $0833392 ROSWELL COMM FCU ............................................................................................ $0 $728 $26,752 $728 $26,752832772 BELL CREDIT UNION ............................................................................................. $0 $727 $56,617 $727 $56,617830613 NORTH RIDGE COMMUNITY CU ............................................................................. $0 $726 $19,125 $726 $19,125832443 NORTHWEST COMMUNITY CU ................................................................................ $0 $726 $726 $0827310 SUN SECURITY BANK OF AMERICA ....................................................................... $0 $722 $722 $0833561 TRANSTAR FCU ...................................................................................................... $0 $719 $68,600 $719 $68,600832631 SPERRY MARINE FCU ............................................................................................ $0 $717 $50,089 $717 $50,089814459 FARMERS STATE BANK FLANDREAU SOUTH .......................................................... $0 $717 $717 $0

160

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

817801 FIRST UNITED BANK .............................................................................................. $0 $716 $716 $0832117 HEALTHCARE SYSTEMS FEDERAL CREDIT U ......................................................... $0 $705 $50,208 $705 $50,208832618 MISSISSIPPI TELCO FCU ........................................................................................ $0 $704 $29,783 $704 $29,783823745 BANK OF NEW CAMBRIA ....................................................................................... $0 $703 $53,070 $703 $53,070806089 PENINSULA BANK .................................................................................................. $0 $701 $43,809 $701 $43,809832767 CATHOLIC PARISHES FCU ..................................................................................... $0 $694 $37,637 $694 $37,637825545 GUARDIAN FEDERAL CREDIT UNION ..................................................................... $0 $692 $39,729 $692 $39,729830284 ARAPAHOE CREDIT UNION .................................................................................... $0 $687 $44,402 $687 $44,402832456 OREGON FIRST COMMUNITY CU ........................................................................... $0 $684 $52,845 $684 $52,845832849 I AND M (TANNERS CREEK) EFCU ........................................................................ $0 $683 $51,334 $683 $51,334830704 EASTERN NEW YORK FCU ..................................................................................... $0 $677 $30,858 $677 $30,858833151 SPOKANE CITY CREDIT UNION .............................................................................. $0 $676 $48,660 $676 $48,660830347 CITIZENS STATE BANK OF SHAKOPEE ................................................................... $0 $669 $29,538 $669 $29,538832252 CPM FEDERAL CREDIT UNION ............................................................................... $0 $669 $44,011 $669 $44,011834017 DEPARTMENT OF COMMERCE FCU ....................................................................... $0 $668 $57,293 $668 $57,293813774 VERMONT FEDERAL CREDIT UNION ...................................................................... $0 $666 $74,105 $666 $74,105804494 MARQUETTE FARMERS STATE BANK ..................................................................... $0 $663 $65,256 $663 $65,256833900 LINCOLN MAINE FCU ............................................................................................. $0 $658 $40,094 $658 $40,094803258 JPMORGAN CHASE BANK NA ................................................................................. $0 $657 $0 $657 $0833018 SECURITY ONE FCU .............................................................................................. $0 $653 $48,906 $653 $48,906833632 ROCHESTER & MONROE CTY FCU ........................................................................ $0 $651 $29,591 $651 $29,591828942 UTI EMPLOYEES CREDIT UNION ............................................................................ $0 $650 $40,934 $650 $40,934832277 NORTH EAST ALLIANCE FEDERAL CREDIT ............................................................. $0 $650 $45,598 $650 $45,598806219 FLAGSHIP BANK ..................................................................................................... $0 $649 $19,625 $649 $19,625832403 WESTERN REGION FED CREDIT UNION ................................................................. $0 $647 $10,463 $647 $10,463832951 SEAPORT CU ......................................................................................................... $0 $646 $40,205 $646 $40,205833939 FARM BUREAU BANK ............................................................................................ $0 $645 $24,125 $645 $24,125832687 KC FAIRFAX FCU ................................................................................................... $0 $643 $47,425 $643 $47,425833538 FIRST JERSEY CU .................................................................................................. $0 $640 $60,793 $640 $60,793828444 BANK OF BROOKFIELD-PURDIN N A ...................................................................... $0 $639 $28,584 $639 $28,584832359 ISHPEMING COMMUNITY FEDERAL CREDIT ........................................................... $0 $639 $41,260 $639 $41,260820377 FIRST BANK AND TRUST COMPANY ...................................................................... $0 $634 $634 $0831023 ALLEGHENY VALLEY FED CR UNION ..................................................................... $0 $633 $633 $0

161

833367 CREDIT UNION OF NEW JERSEY ............................................................................ $0 $628 $23,358 $628 $23,358823635 HANNIBAL NATIONAL BANK ................................................................................... $0 $627 $627 $0829744 BALLINGER NATIONAL BANK ................................................................................. $0 $627 $3,937 $627 $3,937832269 SPENCERPORT FCU ............................................................................................... $0 $625 $22,367 $625 $22,367832779 LEXINGTON AVENUE FEDERAL CREDIT UNI ........................................................... $0 $624 $41,163 $624 $41,163832204 CAROLINA TRUST FCU ........................................................................................... $0 $624 $27,345 $624 $27,345832310 FORT MCCLELLAN CREDIT UNION ......................................................................... $0 $623 $26,609 $623 $26,609820528 BENCHMARK CREDIT UNION ................................................................................. $0 $623 $103,540 $623 $103,540829440 LEGENDS BANK ..................................................................................................... $0 $622 $9,250 $622 $9,250832783 Bank @LANTEC ..................................................................................................... $0 $620 $30,918 $620 $30,918812747 STRAIT-VIEW CREDIT UNION ................................................................................. $0 $616 $41,918 $616 $41,918831365 WELCOME CREDIT UNION ..................................................................................... $0 $614 $121,533 $614 $121,533832629 WOODCO FEDERAL CREDIT UNION ........................................................................ $0 $612 $44,437 $612 $44,437824104 LATVIAN CLEVELAND CREDIT UNION ..................................................................... $0 $611 $21,146 $611 $21,146833551 TEANECK FEDERAL CREDIT UNION ....................................................................... $0 $604 $40,509 $604 $40,509832604 NORTHEAST DENVER FEDERAL CREDIT UNI ......................................................... $0 $601 $49,089 $601 $49,089804692 CREDIT UNION OF JOHNSON COUNTY ................................................................... $0 $598 $42,792 $598 $42,792822774 SNYDER NATIONAL BANK ...................................................................................... $0 $595 $25,722 $595 $25,722832118 TPS CREDIT UNION INC ........................................................................................ $0 $592 $60,276 $592 $60,276834113 LUZERNE COUNTY FCU ......................................................................................... $0 $587 $47,260 $587 $47,260832145 IBEW 76 ................................................................................................................ $0 $587 $41,518 $587 $41,518825532 WATERFORD COMMERCIAL & SAV BANK .............................................................. $0 $585 $39,199 $585 $39,199832983 TAYLOR COMMUNITY CU ....................................................................................... $0 $579 $35,986 $579 $35,986819447 VALLEYSTONE CU .................................................................................................. $0 $579 $35,694 $579 $35,694833877 MINNESOTA MUTUAL COMPANIES CU ................................................................... $0 $578 $578 $0832713 BARAGA COUNTY FEDERAL CREDIT UNION ........................................................... $0 $576 $25,812 $576 $25,812816050 BLUE RIDGE BANK AND TRUST CO ....................................................................... $0 $574 $574 $0831632 HUNTINGTON SCHOOLS FCU ................................................................................. $0 $572 $572 $0831219 VIRGINIA EDUCATORS’ CU .................................................................................... $0 $569 $0 $569 $0834176 COMMUNITY SERVICE CU ..................................................................................... $0 $565 $27,143 $565 $27,143832728 CHISHOLM TRAIL FCU ........................................................................................... $0 $564 $42,197 $564 $42,197832019 TVA CU .................................................................................................................. $0 $562 $36,016 $562 $36,016833906 KNOX COUNTY FCU ............................................................................................... $0 $557 $557 $0805648 ALLIANCE OF MAINE FCU ...................................................................................... $0 $555 $112,329 $555 $112,329833522 OK MEMBERS FIRST FCU ...................................................................................... $0 $553 $36,188 $553 $36,188834135 UNITED POLICE FCU .............................................................................................. $0 $552 $12,288 $552 $12,288822490 JEFFERSON PARISH EFCU ..................................................................................... $0 $551 $23,087 $551 $23,087833430 BN WEST CREDIT UNION ....................................................................................... $0 $548 $33,162 $548 $33,162819099 SUN CREDIT UNION ............................................................................................... $0 $547 $38,813 $547 $38,813832325 BENNINGTON COUNTY TEACHERS CREDIT U ........................................................ $0 $542 $542 $0

162

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

806407 KANABEC STATE BANK .......................................................................................... $0 $537 $38,552 $537 $38,552810832 FIRST NATIONAL BANK BELLVILLE ........................................................................ $0 $537 $30,534 $537 $30,534834228 ARIZONA STATE UNIVERSITY ................................................................................. $0 $537 $537 $0832299 PROMEDICA FEDERAL CREDIT UNION ................................................................... $0 $535 $34,378 $535 $34,378833229 BOULDER VALLEY CREDIT UNION ......................................................................... $0 $533 $14,475 $533 $14,475830060 PARIS NATIONAL BANK .......................................................................................... $0 $526 $30,527 $526 $30,527834284 SOUTHERN ILLINOIS UNIVERSITY .......................................................................... $0 $519 $70,180 $519 $70,180833541 UNIVERSAL FCU .................................................................................................... $0 $516 $0 $516 $0832178 DEER LODGE COUNTY SCHOOL EFCU ................................................................... $0 $511 $511 $0833590 WENATCHEE VALLEY FCU ...................................................................................... $0 $509 $40,009 $509 $40,009806851 FOCUS BANK ......................................................................................................... $0 $508 $21,710 $508 $21,710819564 FIRST NATIONAL BANK .......................................................................................... $0 $507 $507 $0833851 APPALACHIAN COMMUNITY FCU ............................................................................ $0 $506 $37,778 $506 $37,778832667 CHESTNUT COMMUNITY CREDIT UNION ................................................................ $0 $505 $32,838 $505 $32,838833645 STARTRUST FCU .................................................................................................... $0 $505 $0 $505 $0829464 UNITED FCU .......................................................................................................... $0 $501 $501 $0832757 STREATOR ONIZED CREDIT UNION ........................................................................ $0 $501 $30,979 $501 $30,979811906 ASSOCIATED BANK NA .......................................................................................... $0 $499 $499 $0826415 WANIGAS FEDERAL CREDIT UNION ....................................................................... $0 $498 $14,009 $498 $14,009832134 KOOTENAI VALLEY FCU ......................................................................................... $0 $497 $15,917 $497 $15,917832567 TLC FEDERAL CREDIT UNION ................................................................................ $0 $495 $27,762 $495 $27,762820889 BURGER FEDERAL CREDIT UNION ........................................................................ $0 $494 $32,805 $494 $32,805818422 FLORIDA COMMERCE CREDIT UNION .................................................................... $0 $494 $32,211 $494 $32,211834109 FIRST BANK & TRUST CO ..................................................................................... $0 $493 $32,025 $493 $32,025834053 MS FCU ................................................................................................................. $0 $488 $22,946 $488 $22,946833684 BAYLANDS FCU ..................................................................................................... $0 $481 $33,445 $481 $33,445832434 LINN-CO FEDERAL CREDIT UNION ........................................................................ $0 $479 $35,111 $479 $35,111804146 REGIONS BANK ...................................................................................................... $0 $478 $478 $0833569 ILLINOIS VALLEY CREDIT UNION ........................................................................... $0 $476 $21,528 $476 $21,528831850 INDEPENDENT BANK .............................................................................................. $0 $475 $32,708 $475 $32,708824858 BURBANK FEDERAL CREDIT UNION ...................................................................... $0 $475 $26,910 $475 $26,910820166 WESTAMERICA BANK ............................................................................................. $0 $474 $22,959 $474 $22,959832924 CHADWICK FCU ..................................................................................................... $0 $471 $48,819 $471 $48,819

163

832657 TAFT CARBIDE FCU ............................................................................................... $0 $470 $29,036 $470 $29,036829095 SOUTHCOAST HEALTH SYSTEM FCU ...................................................................... $0 $467 $17,686 $467 $17,686820323 WEST COMMUNITY CREDIT UNION ........................................................................ $0 $467 $13,250 $467 $13,250834083 CORE ONE CU INC ................................................................................................ $0 $459 $459 $0810538 PREMIER BANK ..................................................................................................... $0 $458 $458 $0831499 VANTRIA FEDERAL CREDIT UNION ........................................................................ $0 $456 $55,297 $456 $55,297832448 WALKER COUNTY EDUCATORS FCU ...................................................................... $0 $455 $22,020 $455 $22,020833714 COSTA MESA FCU ................................................................................................. $0 $454 $27,300 $454 $27,300821966 US NEW MEXICO FEDERAL CREDIT UNION ........................................................... $0 $451 $28,101 $451 $28,101831015 SODES FEDERAL CREDIT UNION ........................................................................... $0 $451 $23,250 $451 $23,250833793 MILL TOWN CU ...................................................................................................... $0 $450 $15,603 $450 $15,603833425 DALLAS COUNTY CU .............................................................................................. $0 $450 $450 $0807756 BANK OF AKRON ................................................................................................... $0 $449 $14,089 $449 $14,089806810 COMMUNITY STATE BANK ..................................................................................... $0 $448 $11,597 $448 $11,597833729 POSTEL FAMILY CREDIT UNION ............................................................................. $0 $446 $26,679 $446 $26,679816914 MILFORD FCU ........................................................................................................ $0 $442 $41,674 $442 $41,674833897 PRESIDENTS FEDERAL CREDIT UNION .................................................................. $0 $442 $54,636 $442 $54,636824354 NORTH OAKLAND COMMUNITY CREDIT UNIO ........................................................ $0 $439 $34,891 $439 $34,891832469 ONE COMMUNITY FCU ........................................................................................... $0 $438 $14,148 $438 $14,148811948 ASSOCIATED BANK NA .......................................................................................... $0 $437 $437 $0823469 PIONEER BANK ...................................................................................................... $0 $437 $0 $437 $0806747 BANK OF BELTON .................................................................................................. $0 $436 $23,063 $436 $23,063804166 PEOPLES SAVINGS BANK ....................................................................................... $0 $435 $23,619 $435 $23,619834056 AMBRIDGE SCHOOL TEACHERS FCU ..................................................................... $0 $426 $32,000 $426 $32,000833261 KINGSPORT PRESS CREDIT UNION ........................................................................ $0 $426 $11,987 $426 $11,987828130 PULASKI BANK ....................................................................................................... $0 $426 $19,491 $426 $19,491833192 STAR USA FEDERAL CREDIT UNION ...................................................................... $0 $426 $18,613 $426 $18,613824769 JOHNS HOPKINS UNIVERSITY ................................................................................ $0 $426 $0 $426 $0830571 ELECTRICAL WORKERS CREDIT UNION ................................................................. $0 $423 $20,966 $423 $20,966833393 PINNACLE FCU ...................................................................................................... $0 $420 $26,800 $420 $26,800810437 FARMERS & MERCHANTS STATE BANK ................................................................. $0 $419 $419 $0828642 ASCENSION SCHOOL ECU ..................................................................................... $0 $418 $24,189 $418 $24,189803427 CLIFTY CREEK EMPLOYEES FCU ........................................................................... $0 $416 $24,780 $416 $24,780834197 FULTON COUNTY FCU ............................................................................................ $0 $410 $38,828 $410 $38,828807009 BANK OF BAKER .................................................................................................... $0 $408 $408 $0812763 UNITED CREDIT UNION .......................................................................................... $0 $405 $24,640 $405 $24,640833319 C.C.S.E. FCU ......................................................................................................... $0 $402 $57,105 $402 $57,105833386 SOUTH BERGEN FCU ............................................................................................. $0 $397 $32,769 $397 $32,769832571 OLD OCEAN FCU ................................................................................................... $0 $395 $395 $0813133 COPOCO CREDIT UNION ........................................................................................ $0 $395 $395 $0

164

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833523 PLUS4 CU .............................................................................................................. $0 $394 $23,640 $394 $23,640819993 WESTERRA CU ....................................................................................................... $0 $393 $9,349 $393 $9,349833849 KEARNEY EATON EMPLOYEES FCU ....................................................................... $0 $393 $26,229 $393 $26,229833756 UNCLE CREDIT UNION ........................................................................................... $0 $393 $21,495 $393 $21,495815648 TAMPA BAY FEDERAL CREDIT UNION ................................................................... $0 $392 $27,131 $392 $27,131829953 FAIRLEIGH DICKINSON UNIVERSITY FCU ............................................................... $0 $391 $6,950 $391 $6,950832753 UNIVERSITY HEALTH FCU ...................................................................................... $0 $391 $10,440 $391 $10,440833879 COOPERATIVE CU .................................................................................................. $0 $390 $26,218 $390 $26,218833235 AMERICAN SAVINGS CREDIT UNION ...................................................................... $0 $388 $20,131 $388 $20,131833173 ST. MARYS BANK .................................................................................................. $0 $388 $388 $0830798 INVESTEX CU ......................................................................................................... $0 $387 $25,587 $387 $25,587832317 MEMBERS ADVANTAGE COMMUNITY CU ............................................................... $0 $387 $48,988 $387 $48,988833825 CP FCU .................................................................................................................. $0 $386 $10,626 $386 $10,626833677 PACIFIC RESOURCE CU ......................................................................................... $0 $385 $7,754 $385 $7,754825299 LORMET COMMUNITY FEDERAL CREDIT UNI ......................................................... $0 $383 $21,515 $383 $21,515827952 EXCHANGE STATE BANK ........................................................................................ $0 $382 $20,513 $382 $20,513830730 FIRST CENTRAL CU ............................................................................................... $0 $380 $24,772 $380 $24,772833563 COOPER’S CAVE FCU ............................................................................................ $0 $380 $23,567 $380 $23,567833942 SCHNEIDER COMMUNITY CU ................................................................................. $0 $378 $27,230 $378 $27,230833676 COMMUNITY 1ST CREDIT UNION ........................................................................... $0 $375 $47,915 $375 $47,915804257 UNION STATE BANK ............................................................................................... $0 $373 $373 $0806252 FARMERS & MERCHANTS STATE BANK ................................................................. $0 $370 $370 $0832603 WATERFRONT FCU ................................................................................................. $0 $367 $31,645 $367 $31,645806322 FIRST NATIONAL BANK OSAKIS ............................................................................. $0 $366 $7,713 $366 $7,713831964 CAPITAL COMMUNITY CU ...................................................................................... $0 $366 $28,810 $366 $28,810819110 G I C FEDERAL CREDIT UNION ............................................................................. $0 $365 $21,907 $365 $21,907832235 HILLSIDE HOSPITAL FEDERAL CREDIT UN ............................................................. $0 $365 $10,797 $365 $10,797832519 SOFCU ................................................................................................................... $0 $363 $11,935 $363 $11,935815504 INDEPENDENT EMPLOYERS GROUP FCU ............................................................... $0 $361 $21,793 $361 $21,793833587 BENTON COUNTY SCHOOLS CU ............................................................................ $0 $360 $56,623 $360 $56,623832322 ACHIEVE FINANCIAL CREDIT UNION ...................................................................... $0 $359 $32,541 $359 $32,541830504 PRICECHOPPER EMPLOYEES FED CR UN ............................................................. $0 $355 $22,125 $355 $22,125832530 CENTRAL GEORGIA REGIONAL CU ......................................................................... $0 $355 $17,676 $355 $17,676

165

834077 UFIRST FCU ........................................................................................................... $0 $352 $15,070 $352 $15,070833678 CENTRAL WILLAMETTE CU .................................................................................... $0 $351 $23,983 $351 $23,983814008 THE MARIES COUNTY BANK .................................................................................. $0 $348 $348 $0832898 ALLEGANY COUNTY SCHOOLS FCU ....................................................................... $0 $347 $20,475 $347 $20,475802198 AFL-CIO EMPLOYEES FCU ..................................................................................... $0 $341 $672 $341 $672813975 CITIZENS BANK & TRUST ...................................................................................... $0 $340 $18,850 $340 $18,850832926 PRECISION CU ....................................................................................................... $0 $337 $12,965 $337 $12,965833544 MONMOUTH FCU ................................................................................................... $0 $333 $333 $0832441 SEAFORD FEDERAL CREDIT UNION ....................................................................... $0 $333 $35,057 $333 $35,057832329 AOD FEDERAL CREDIT UNION ............................................................................... $0 $330 $27,514 $330 $27,514832430 BIG VALLEY FEDERAL CREDIT UNION ................................................................... $0 $329 $17,482 $329 $17,482819422 SOUTH LAFOURCHE BANK & TRUST CO ............................................................... $0 $328 $328 $0824699 SANDIA LABORATORY FCU .................................................................................... $0 $328 $8,579 $328 $8,579833423 EDUCATIONAL COMM CU ...................................................................................... $0 $327 $20,765 $327 $20,765833504 LAKEVIEW CREDIT UNION ...................................................................................... $0 $327 $327 $0832506 IQ CREDIT UNION .................................................................................................. $0 $327 $9,945 $327 $9,945833936 GNC COMMUNITY FCU .......................................................................................... $0 $325 $31,265 $325 $31,265806858 GATEWAY NAT’L BANK OF ST LOUIS ..................................................................... $0 $323 $323 $0826355 PLANTERS BANK & TRUST COMPANY ................................................................... $0 $322 $322 $0818156 ALABAMA CREDIT UNION ...................................................................................... $0 $320 $24,712 $320 $24,712834207 HOLY FAMILY MEMORIAL CU ................................................................................ $0 $316 $37,830 $316 $37,830821987 PEOPLES STATE BANK OF MUNISING .................................................................... $0 $315 $33,278 $315 $33,278808058 M & T BANK EDUCATIONAL LENDING ................................................................... $0 $314 $26,894 $314 $26,894832381 EAST IDAHO CU ..................................................................................................... $0 $314 $2,000 $314 $2,000830853 COMMUNITY EDUCATIONAL FCU ........................................................................... $0 $309 $19,335 $309 $19,335832265 STEEL VALLEY FCU ............................................................................................... $0 $309 $34,081 $309 $34,081832638 PARSONS PITTSBURG CU ...................................................................................... $0 $308 $26,034 $308 $26,034833695 SCENIC FALLS FCU ............................................................................................... $0 $305 $17,210 $305 $17,210832793 COMMUNITY HEALTHCARE FCU ............................................................................. $0 $305 $55,715 $305 $55,715832921 SOUTHLAND CIVIC CREDIT UNION ........................................................................ $0 $305 $26,691 $305 $26,691829370 BANK OF OLD MONROE ......................................................................................... $0 $303 $14,961 $303 $14,961828728 IOSCO COMMUNITY CREDIT UNION ....................................................................... $0 $300 $10,954 $300 $10,954834298 ST. LOUIS UNIVERSITY .......................................................................................... $0 $300 $0 $300 $0830474 U.S. ALLIANCE CU ................................................................................................. $0 $299 $20,286 $299 $20,286817519 MON-OC FEDERAL CREDIT UNION ........................................................................ $0 $299 $35,549 $299 $35,549820394 LAKE COUNTY BANK .............................................................................................. $0 $296 $296 $0833937 CY-CO FCU ............................................................................................................ $0 $296 $19,602 $296 $19,602818630 SUMA YONKERS FCU ............................................................................................. $0 $296 $18,502 $296 $18,502833850 MOHAWK PROGRESSIVE FEDERAL CREDIT U ........................................................ $0 $294 $8,566 $294 $8,566833472 UNIVERSAL CITY STUDIOS CU ............................................................................... $0 $291 $33,899 $291 $33,899

166

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

830041 ALL CITY EMPLOYEES CREDIT UNION ................................................................... $0 $290 $3,286 $290 $3,286822170 WHEELING NATIONAL BANK ................................................................................... $0 $286 $15,863 $286 $15,863804658 GREAT PLAINS FEDERAL CREDIT UNION ............................................................... $0 $285 $21,700 $285 $21,700828777 MITCHELL BANK .................................................................................................... $0 $283 $6,125 $283 $6,125803999 FARMERS STATE BANK .......................................................................................... $0 $283 $283 $0832462 CORNERSTONE COMMUNITY FIN FCU ................................................................... $0 $282 $9,646 $282 $9,646833814 ANOKA HENNEPIN CREDIT UNION ......................................................................... $0 $281 $19,231 $281 $19,231817719 RARITAN BAY FEDERAL CREDIT UNION ................................................................ $0 $281 $15,886 $281 $15,886832812 FRANKENMUTH CU ................................................................................................ $0 $280 $19,114 $280 $19,114833843 UNITED FINANCIAL CU .......................................................................................... $0 $278 $33,485 $278 $33,485833213 PARSONS FEDERAL CREDIT UNION ....................................................................... $0 $276 $29,505 $276 $29,505821562 CARNEGIE MELLON UNIVERSITY ........................................................................... $0 $269 $36,319 $269 $36,319832698 ROGUE FEDERAL CREDIT UNION ........................................................................... $0 $266 $18,221 $266 $18,221810449 FARMERS STATE BANK .......................................................................................... $0 $262 $262 $0823108 MIDSTATE CREDIT UNION ...................................................................................... $0 $261 $22,277 $261 $22,277824220 CONSOLIDATED BANK & TRUST COMPANY ........................................................... $0 $254 $12,673 $254 $12,673832494 SYMPHONY ORCHESTRA EFCU .............................................................................. $0 $252 $27,588 $252 $27,588832922 KENNEWICK COMMUNITY FCU ............................................................................... $0 $250 $9,490 $250 $9,490813981 MIDWEST BANKCENTRE ......................................................................................... $0 $249 $249 $0829868 FINANCIAL PLUS FCU ............................................................................................ $0 $245 $37,415 $245 $37,415812335 FIRST CHOICE CREDIT UNION ............................................................................... $0 $245 $10,763 $245 $10,763833490 MELROSE CREDIT UNION ...................................................................................... $0 $245 $11,098 $245 $11,098832808 MEMBERS OWN FCU ............................................................................................. $0 $241 $14,454 $241 $14,454828971 NEW VISIONS COMMUNITY FCU ............................................................................ $0 $241 $241 $0814817 BANK OF AMERICA NA .......................................................................................... $0 $238 $0 $238 $0828261 CAPITOL REGION FCU ........................................................................................... $0 $234 $234 $0833390 BLACKSTONE RIVER FCU ...................................................................................... $0 $231 $8,860 $231 $8,860833524 CAROLINAS TELCO FCU ......................................................................................... $0 $228 $13,912 $228 $13,912810698 UNION PLANTERS NATIONAL BANK ....................................................................... $0 $226 $226 $0804402 CITIZENS STATE BANK .......................................................................................... $0 $225 $26,323 $225 $26,323823388 TEXAS RURAL COMMUNITIES ................................................................................ $0 $225 $9,000 $225 $9,000833328 TOWNE BANK ......................................................................................................... $0 $220 $11,125 $220 $11,125833115 JP MORGAN CHASE SMS TRUST 1994-A .............................................................. $0 $219 $129,802 $219 $129,802

167

826376 FEDCOM CU .......................................................................................................... $0 $216 $18,750 $216 $18,750832888 NEW SPIRIT CREDIT UNION ................................................................................... $0 $216 $13,030 $216 $13,030816044 FARMERS & MERCHANTS BANK ............................................................................ $0 $215 $15,408 $215 $15,408832830 RIVERDALE CREDIT UNION .................................................................................... $0 $213 $14,299 $213 $14,299832004 NORFOLK FIRE DEPARTMENT FCU ........................................................................ $0 $212 $33,897 $212 $33,897834120 WORTHINGTON NAT’L BANK .................................................................................. $0 $212 $14,463 $212 $14,463834277 NATIONAL UNIVERSITY .......................................................................................... $0 $208 $49,780 $208 $49,780833349 COUNTY SCHOOLS FEDERAL CREDIT UNION ......................................................... $0 $205 $18,160 $205 $18,160832634 RCU 1500 FEDERAL CREDIT UNION ..................................................................... $0 $203 $18,662 $203 $18,662812012 STATE BANK OF LA CROSSE ................................................................................. $0 $201 $201 $0820814 PEOPLES STATE BANK ........................................................................................... $0 $196 $9,886 $196 $9,886816773 FIRST NEW ENGLAND FCU .................................................................................... $0 $194 $14,745 $194 $14,745832418 WINDSOR COUNTY SOUTH CREDIT UNION ............................................................ $0 $194 $8,750 $194 $8,750834098 SILVER STATE SCHOOLS CU ................................................................................. $0 $193 $21,000 $193 $21,000834279 LOYOLA COLLEGE .................................................................................................. $0 $188 $188 $0821496 CANTON STATE BANK ............................................................................................ $0 $188 $3,500 $188 $3,500805623 NORTHEAST BANK FSB .......................................................................................... $0 $188 $12,806 $188 $12,806833759 A/C CREDIT UNION INC ......................................................................................... $0 $187 $26,565 $187 $26,565832423 AMH CREDIT UNION .............................................................................................. $0 $187 $17,067 $187 $17,067832320 GRANITE HILLS CREDIT UNION ............................................................................. $0 $187 $12,286 $187 $12,286829497 ALOHA AIRLINES FCU ............................................................................................ $0 $182 $9,104 $182 $9,104832872 STREATOR COMMUNITY CREDIT UNION ................................................................ $0 $180 $10,703 $180 $10,703830063 MICHIGAN FIRST CU .............................................................................................. $0 $174 $12,258 $174 $12,258805923 THE FIRST NATIONAL BANK & TRUST ................................................................... $0 $174 $174 $0817414 ST PAULS LATVIAN FCU ........................................................................................ $0 $173 $173 $0827371 ARC CREDIT UNION ............................................................................................... $0 $173 $19,253 $173 $19,253831651 FIRST NATIONAL BANK OF COWETA ...................................................................... $0 $170 $170 $0834287 ARCADIA UNIVERSITY ............................................................................................ $0 $168 $0 $168 $0832183 ANDERSON FEDERAL CREDIT UNION .................................................................... $0 $167 $955 $167 $955834013 LONG ISLAND COMMUNITY FCU ............................................................................ $0 $165 $34,279 $165 $34,279833773 AMF KENNEDY EMP FCU ....................................................................................... $0 $165 $10,912 $165 $10,912833477 PRIORITY ONE CU ................................................................................................. $0 $164 $9,864 $164 $9,864832894 UNITED 1ST FCU ................................................................................................... $0 $164 $5,393 $164 $5,393822662 MARQUETTE COMMUNITY FCU .............................................................................. $0 $164 $5,078 $164 $5,078822031 1ST SUMMIT BANK ................................................................................................ $0 $161 $348,098 $161 $348,098834208 TEXAS BAY AREA CREDIT UNION .......................................................................... $0 $158 $158 $0832643 GRS EMPLOYEES CREDIT UNION .......................................................................... $0 $158 $20,504 $158 $20,504804448 DOWNS NATIONAL BANK ....................................................................................... $0 $158 $2,919 $158 $2,919817717 BRIDGETON ONIZED FCU ...................................................................................... $0 $158 $158 $0803997 FARMERS SAVINGS BANK ...................................................................................... $0 $156 $18,058 $156 $18,058

168

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

833327 UNITED SAVINGS FEDERAL CREDIT UNION ........................................................... $0 $156 $10,140 $156 $10,140830548 CITIBANK ELT SLC ................................................................................................. $0 $156 $31,913 $156 $31,913832709 WOLVERINE EMPLOYEES CU ................................................................................. $0 $151 $13,048 $151 $13,048833528 1ST PACIFIC CREDIT UNION .................................................................................. $0 $151 $8,750 $151 $8,750812264 GOLDMARK FEDERAL CREDIT UNION .................................................................... $0 $150 $11,328 $150 $11,328833722 CERTIFIED FCU ...................................................................................................... $0 $149 $9,236 $149 $9,236833717 ALLIED HEALTHCARE FCU ..................................................................................... $0 $148 $9,167 $148 $9,167832589 MOUNTAIN HERITAGE FCU .................................................................................... $0 $147 $10,848 $147 $10,848834061 NEW ENGLAND COLLEGE OF OPTOMETRY ............................................................. $0 $147 $37,000 $147 $37,000815723 SAFE HARBOR CREDIT UNION ............................................................................... $0 $147 $8,811 $147 $8,811818200 THEO DAVIES FEDERAL CREDIT UNION ................................................................. $0 $147 $3,619 $147 $3,619833494 FEDSTAR FEDERAL CREDIT UNION ........................................................................ $0 $147 $10,500 $147 $10,500804206 SECURITY STATE BANK ......................................................................................... $0 $145 $11,398 $145 $11,398806870 SHOW ME CREDIT UNION ...................................................................................... $0 $144 $9,526 $144 $9,526821660 ABILENE CHRISTIAN UNIVERSITY .......................................................................... $0 $144 $0 $144 $0808279 CENTRIS FCU ........................................................................................................ $0 $143 $9,058 $143 $9,058833007 MERIWEST CREDIT UNION ..................................................................................... $0 $143 $10,902 $143 $10,902833784 CENTRAL HUDSON EMPLOYEES FEDERAL CU ....................................................... $0 $142 $8,802 $142 $8,802823007 UNIVERSITY OF PITTSBURGH ................................................................................ $0 $142 $19,442 $142 $19,442823760 66 FCU .................................................................................................................. $0 $142 $9,516 $142 $9,516832778 PROVIDENCE HEALTH SYSTEM FCU ...................................................................... $0 $142 $11,359 $142 $11,359832354 LIMESTONE FEDERAL CREDIT UNION .................................................................... $0 $141 $9,350 $141 $9,350823066 NEW YORK INSTITUTE OF TECHNOLOGY ............................................................... $0 $141 $0 $141 $0830091 PATENT AND TRADEMARK OFFICE FCU ................................................................. $0 $140 $7,802 $140 $7,802834253 DOWLING COLLEGE ............................................................................................... $0 $139 $139 $0828978 OTTUMWA SCH EMPL CREDIT UNION .................................................................... $0 $139 $139 $0833573 BAYONNE HOSPITAL EMP FCU .............................................................................. $0 $138 $5,010 $138 $5,010828801 THE BANK OF CARBONDALE ................................................................................. $0 $138 $138 $0834260 UNIVERSITY OF MD CP ......................................................................................... $0 $137 $137 $0805907 FARMERS STATE BANK OF BRECKENRIDGE .......................................................... $0 $135 $16,219 $135 $16,219813466 FRAMINGHAM MUNICIPAL FEDERAL CREDIT ......................................................... $0 $135 $9,432 $135 $9,432832313 LOUVAH FEDERAL CREDIT UNION ......................................................................... $0 $134 $8,951 $134 $8,951832927 NORTH SHORE HEALTH SYSTEM FCU ................................................................... $0 $132 $9,365 $132 $9,365

169

814658 LOUISIANA CENTRAL CREDIT UNION ..................................................................... $0 $131 $11,136 $131 $11,136832457 GREATER OREGON FCU ......................................................................................... $0 $131 $8,352 $131 $8,352832042 DOWAGIAC AREA FCU ........................................................................................... $0 $129 $6,910 $129 $6,910830480 BANK OF STOCKTON .............................................................................................. $0 $129 $6,871 $129 $6,871822237 UNIVERSITY OF ILLINOIS ....................................................................................... $0 $128 $128 $0813671 UNION BANK & TRUST COMPANY ......................................................................... $0 $127 $6,479 $127 $6,479832510 AUBURN S&L ASSOCIATION .................................................................................. $0 $127 $127 $0827057 BANKERS FIDELITY LIFE INSURANCE CO .............................................................. $0 $126 $126 $0812744 FIRST NATIONAL BANK OF BERRYVILLE ................................................................ $0 $126 $10,026 $126 $10,026833124 THE NATIONAL BANK OF INDIANAPOLIS ................................................................ $0 $125 $125 $0817380 TVA CU .................................................................................................................. $0 $124 $8,667 $124 $8,667808064 COMMUNITY MUTUAL SAVINGS BANK ................................................................... $0 $123 $123 $0800029 WACHOVIA BANK NA ............................................................................................. $0 $123 $123 $0833040 NORTHEASTERN ENGINEERS FCU ......................................................................... $0 $122 $19,781 $122 $19,781828453 REGISTER-GUARD FCU .......................................................................................... $0 $122 $122 $0816516 RETAIL EMPLOYEES CU ......................................................................................... $0 $120 $7,605 $120 $7,605824574 1ST GARLAND COMMUNITY FCU ........................................................................... $0 $119 $7,654 $119 $7,654820787 FREEDOM CREDIT UNION ...................................................................................... $0 $117 $11,993 $117 $11,993830016 SECNY FCU ........................................................................................................... $0 $117 $10,425 $117 $10,425815880 NEW ALLIANCE BANK ............................................................................................ $0 $117 $117 $0831053 SLM ECFC ............................................................................................................. $0 $117 $86,147 $117 $86,147834294 UNIVERSITY OF SCRANTON ................................................................................... $0 $115 $4,845 $115 $4,845833703 ST. JOHN’S OF LITTLE CANADA CU ....................................................................... $0 $115 $16,332 $115 $16,332834214 SOUTHERN ILLINOIS UNIVERSITY .......................................................................... $0 $114 $114 $0820212 CHIPPEWA COUNTY EMPLOYEES CU ..................................................................... $0 $114 $8,345 $114 $8,345826478 EMORY UNIVERSITY .............................................................................................. $0 $112 $112 $0832119 PRIME CARE CREDIT UNION ................................................................................. $0 $110 $6,727 $110 $6,727834280 NORTHEASTERN UNIVERSITY ................................................................................. $0 $110 $110 $0819332 WEPCO FEDERAL CREDIT UNION .......................................................................... $0 $107 $6,797 $107 $6,797829253 EQUITABLE SAVINGS & LOAN COMPANY ............................................................... $0 $106 $8,299 $106 $8,299832508 COOPERATIVE CENTER FCU .................................................................................. $0 $105 $6,621 $105 $6,621830306 MARSHLAND COMMUNITY FCU .............................................................................. $0 $105 $10,322 $105 $10,322832427 MICHIGAN TECH EFCU .......................................................................................... $0 $104 $5,265 $104 $5,265834164 TRI-LAKES FCU ...................................................................................................... $0 $103 $14,081 $103 $14,081834249 WELLS FARGO ELT WALDEN UNIVERSITY .............................................................. $0 $103 $0 $103 $0833525 LOCAL 144 S.E.I.U. FCU ........................................................................................ $0 $103 $5,207 $103 $5,207832268 COUNTRY HERITAGE CREDIT UNION ..................................................................... $0 $102 $6,326 $102 $6,326833581 EDWARDS FEDERAL CREDIT UNION ...................................................................... $0 $100 $6,419 $100 $6,419831298 COMMUNITY FIRST FCU ........................................................................................ $0 $100 $100 $0830592 CONSOLIDATED HUB-CO FCU ................................................................................ $0 $99 $8,787 $99 $8,787

170

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

832431 WINTHROP FEDERAL CREDIT UNION ..................................................................... $0 $99 $33,149 $99 $33,149834286 CONCORDIA SEMINARY ......................................................................................... $0 $99 $16,500 $99 $16,500833764 DEXSTA FEDERAL CREDIT UNION .......................................................................... $0 $98 $6,541 $98 $6,541833591 SEATTLE METROPOLITAN CU ................................................................................. $0 $97 $10,042 $97 $10,042834213 SOMERSET VALLEY BANK ...................................................................................... $0 $96 $0 $96 $0827810 US FIRST FEDERAL CREDIT UNION ....................................................................... $0 $95 $5,981 $95 $5,981834065 HVHS CU ............................................................................................................... $0 $94 $80,362 $94 $80,362833904 HI-LAND HOSPITAL FEDERAL CREDIT UNI ............................................................. $0 $93 $6,084 $93 $6,084831882 HORIZON BANK ..................................................................................................... $0 $92 $5,250 $92 $5,250834220 VALLEY COMMUNITIES CU .................................................................................... $0 $90 $6,125 $90 $6,125833464 SOURCEONE CREDIT UNION .................................................................................. $0 $90 $28,339 $90 $28,339833790 KERR COUNTY FCU ............................................................................................... $0 $89 $89 $0833813 SUNSET SCIENCE PARK FEDERAL CREDIT ............................................................ $0 $88 $88 $0819519 SPCO FCU ............................................................................................................. $0 $86 $6,125 $86 $6,125834274 LAKE ERIE COLLEGE OF OSTEO MED .................................................................... $0 $84 $84 $0832936 EDUCATIONAL & GOVERNMENTAL EFCU ............................................................... $0 $83 $3,748 $83 $3,748813766 STATE BANK OF SLATER ....................................................................................... $0 $83 $0 $83 $0823448 GEORGETOWN UNIVERSITY .................................................................................... $0 $82 $82 $0832967 WY-SOUTH FCU ..................................................................................................... $0 $82 $5,488 $82 $5,488834075 DELAWARE STATE POLICE FCU ............................................................................. $0 $82 $6,125 $82 $6,125829263 JEFFERSON BANK & TRUST COMPANY .................................................................. $0 $80 $2,625 $80 $2,625829874 SAGINAW AUTOMOTIVE EFCU ................................................................................ $0 $75 $75 $0834291 JOHN CARROLL UNIVERSITY .................................................................................. $0 $75 $1,860 $75 $1,860832769 ESCU FEDERAL CREDIT UNION ............................................................................. $0 $74 $6,108 $74 $6,108834276 FORDHAM UNIVERSITY .......................................................................................... $0 $74 $74 $0819462 KEARNEY TRUST COMPANY ................................................................................... $0 $72 $0 $72 $0832440 LOUISE E MILLS FEDERAL CREDIT UNION ............................................................ $0 $72 $5,159 $72 $5,159832856 ST JEANS CREDIT UNION ...................................................................................... $0 $71 $0 $71 $0834177 MONTEREY COUNTY EMP CU ................................................................................ $0 $71 $5,500 $71 $5,500819406 HURON CNW FCU .................................................................................................. $0 $71 $3,251 $71 $3,251816484 1ST CHOICE CREDIT UNION .................................................................................. $0 $71 $71 $0832240 FRONT ROYAL FCU ................................................................................................ $0 $70 $4,228 $70 $4,228832596 SOUTHWEST AIRLINES FEDERAL CREDIT U ........................................................... $0 $70 $5,064 $70 $5,064

171

834304 FLORIDA COASTAL SCHOOL OF LAW ..................................................................... $0 $70 $9,250 $70 $9,250832167 GREENVILLE FEDERAL CREDIT UNION .................................................................. $0 $69 $4,813 $69 $4,813833554 TOWN OF HEMPSTEAD EMP FCU ........................................................................... $0 $69 $13,882 $69 $13,882833440 LBS FINANCIAL CREDIT UNION ............................................................................. $0 $68 $4,303 $68 $4,303817308 COLORADO UNITED CREDIT UNION ....................................................................... $0 $65 $0 $65 $0824872 CENTRAL KANSAS CU ............................................................................................ $0 $65 $4,753 $65 $4,753831605 COUNTY OF HENRICO FCU .................................................................................... $0 $65 $65 $0832491 MARKET USA FEDERAL CREDIT UNION ................................................................. $0 $65 $7,604 $65 $7,604834296 UNIVERSITY OF NORTHWESTERN OHIO ................................................................. $0 $64 $15,790 $64 $15,790834288 ROBERT MORRIS UNIVERSITY ............................................................................... $0 $64 $64 $0833357 OHIO VALLEY CREDIT UNION ................................................................................ $0 $63 $9,514 $63 $9,514825487 BOSTON COLLEGE ................................................................................................. $0 $63 $63 $0822384 INDEPENDENT BANK .............................................................................................. $0 $62 $24,307 $62 $24,307813136 HOMETOWN COMMUNITY CU ................................................................................. $0 $61 $5,557 $61 $5,557827559 EQUITABLE SAVINGS AND LOAN ASSOCIAT ........................................................... $0 $61 $61 $0814431 MINNWEST BANK MONTEVIDEO ............................................................................. $0 $61 $5,438 $61 $5,438834232 PERMACULTURE CU .............................................................................................. $0 $61 $6,611 $61 $6,611832425 CARRAWAY METHODIST FCU ................................................................................. $0 $60 $60 $0822449 VANDERBILT UNIVERSITY ...................................................................................... $0 $60 $60 $0817209 VALLEY CATHOLIC FCU ......................................................................................... $0 $60 $1,819 $60 $1,819827291 PEOPLES BANK AND TRUST COMPANY ................................................................. $0 $60 $60 $0832756 SHERATON HAWAII FCU ......................................................................................... $0 $60 $17,217 $60 $17,217813145 CREDIT UNION ONE ............................................................................................... $0 $59 $8,602 $59 $8,602827202 E&A CREDIT UNION ............................................................................................... $0 $57 $4,940 $57 $4,940834180 ENERGY CAPITAL CU ............................................................................................. $0 $57 $2,625 $57 $2,625834195 BAPTIST CREDIT UNION ........................................................................................ $0 $56 $4,200 $56 $4,200810894 HEREFORD STATE BANK ........................................................................................ $0 $56 $56 $0822686 SANTANDER DE PUERTO RICO .............................................................................. $0 $55 $11,599 $55 $11,599832237 PALMETTO TRUST FEDERAL CREDIT UNION .......................................................... $0 $53 $4,756 $53 $4,756832691 QUALSTAR CU ....................................................................................................... $0 $53 $3,563 $53 $3,563831367 OLD DOMINION UNIVERSITY CREDIT UNIO ............................................................ $0 $53 $24,457 $53 $24,457833377 CAMPUS CREDIT UNION ........................................................................................ $0 $52 $905 $52 $905817180 STAMFORD POSTAL EFCU ...................................................................................... $0 $52 $7,704 $52 $7,704833935 VIRGINIA BEACH SCHOOLS FCU ............................................................................ $0 $51 $10,379 $51 $10,379802182 WATERBURY FIREFIGHTERS MUNI FCU ................................................................. $0 $49 $49 $0832379 NORTHWEST HILLS CREDIT UNION INC ................................................................. $0 $49 $1,615 $49 $1,615832853 SOUTH DIVISION CREDIT UNION ........................................................................... $0 $49 $9,410 $49 $9,410833126 MILLSTREAM AREA CU .......................................................................................... $0 $47 $5,955 $47 $5,955832831 LOCO CREDIT UNION ............................................................................................. $0 $47 $3,507 $47 $3,507816869 GE0RGIA COASTAL FCU ......................................................................................... $0 $47 $3,103 $47 $3,103

172

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

815516 HONOLULU CITY & COUNTY FEDERAL CRED ........................................................ $0 $47 $3,500 $47 $3,500822338 PEOPLES ALLIANCE FCU ....................................................................................... $0 $45 $3,370 $45 $3,370834297 DEPAUL UNIVERSITY ............................................................................................. $0 $45 $6,166 $45 $6,166833621 DEPT OF VETERANS AFFAIRS FCU ........................................................................ $0 $45 $45 $0832852 RIVER WORKS CREDIT UNION ............................................................................... $0 $44 $2,118 $44 $2,118823132 UNION THEOLOGICAL SEMINARY ........................................................................... $0 $44 $3,895 $44 $3,895828384 THE FIRST NATIONAL BANK/BALLINGER ................................................................ $0 $43 $43 $0833290 SYRACUSE FCU ..................................................................................................... $0 $42 $42 $0810809 FIRST NATIONAL BANK .......................................................................................... $0 $42 $2,691 $42 $2,691825138 UNIVERSITY OF CA SAN FRANCISCO ..................................................................... $0 $42 $42 $0805943 CLS-NATIONAL CITY BANK (FOA) .......................................................................... $0 $41 $4,000 $41 $4,000832271 MEMBER’S CHOICE CU ......................................................................................... $0 $40 $2,882 $40 $2,882833725 PORT ALLIANCE FCU ............................................................................................. $0 $40 $0 $40 $0833700 LA FINANCIAL FCU ................................................................................................ $0 $40 $2,626 $40 $2,626821517 PURDUE UNIVERSITY ............................................................................................. $0 $37 $37 $0820411 BANK INDEPENDENT .............................................................................................. $0 $37 $0 $37 $0804776 HILLSBORO STATE BANK ....................................................................................... $0 $36 $36 $0827132 SKY BANK .............................................................................................................. $0 $35 $3,236 $35 $3,236816323 PINNACLE CREDIT UNION ...................................................................................... $0 $35 $2,972 $35 $2,972832466 ALLEGIS CREDIT UNION ........................................................................................ $0 $34 $2,744 $34 $2,744834085 LAKE ERIE COMMUNITY FCU ................................................................................. $0 $34 $34 $0834270 POINT PARK UNIVERSITY ....................................................................................... $0 $33 $0 $33 $0829426 DUPONT FIBERS FEDERAL CREDIT UNION ............................................................ $0 $33 $33 $0813171 NW CONSUMERS FCU ........................................................................................... $0 $31 $2,338 $31 $2,338826782 FLAGSTAR BANK FSB ............................................................................................ $0 $31 $31 $0828554 CAPITAL CITY BANK .............................................................................................. $0 $31 $31 $0834168 MINUTEMAN COMMUNITY FCU .............................................................................. $0 $30 $3,312 $30 $3,312811008 HORIZON CAPITAL BANK ....................................................................................... $0 $29 $29 $0809556 BANK OF AMERICA ................................................................................................ $0 $29 $29 $0834283 ASHLAND UNIVERSITY ........................................................................................... $0 $29 $3,893 $29 $3,893820449 ST MICHAEL’S FALL RIVER FCU ............................................................................ $0 $29 $1,888 $29 $1,888833021 KEY BANK NA ........................................................................................................ $0 $28 $63,564 $28 $63,564833640 LOCAL 804 FCU .................................................................................................... $0 $28 $0 $28 $0

173

832970 RED LAKE CO-OP FCU .......................................................................................... $0 $28 $1,714 $28 $1,714833478 SAINT FRANCIS EMPLOYEES FCU .......................................................................... $0 $27 $1,802 $27 $1,802833008 GTA CREDIT UNION ............................................................................................... $0 $27 $27 $0832057 JPMORGAN CHASE ELT GTSLC .............................................................................. $0 $27 $27 $0810953 SANTA ANNA NATIONAL BANK ............................................................................... $0 $26 $26 $0812106 MERCK EMPLOYEES FCU ...................................................................................... $0 $26 $2,667 $26 $2,667810067 COMMUNITY BANK & TRUST CO ........................................................................... $0 $26 $4,239 $26 $4,239834090 JEANNE D’ARC CU ................................................................................................. $0 $26 $2,582 $26 $2,582808178 COMMUNITY BANK NA ........................................................................................... $0 $25 $25 $0832714 STONEHAM MUNICIPAL EFCU ................................................................................ $0 $25 $1,348 $25 $1,348834295 UNIVERSITY OF THE INCARNATE WORD ................................................................ $0 $25 $3,214 $25 $3,214834209 EDWARD VIA VIRGINIA COL. OF OSTEOPA ............................................................ $0 $25 $25 $0816473 HUMAN SERVICES EMPLOYEE CU ......................................................................... $0 $24 $1,257 $24 $1,257831749 WACHOVIA BANK NA ............................................................................................. $0 $21 $21 $0810960 STATE BANK OF DEKALB ....................................................................................... $0 $21 $16,915 $21 $16,915806063 SAND RIDGE BANK ................................................................................................ $0 $21 $21 $0833693 TCP CREDIT UNION ............................................................................................... $0 $20 $3,782 $20 $3,782831927 ADVANTIS CU ........................................................................................................ $0 $20 $20 $0834262 NEW MEXICO STATE UNIVERSITY .......................................................................... $0 $19 $2,200 $19 $2,200834268 ROBERT MORRIS COLLEGE ................................................................................... $0 $18 $1,780 $18 $1,780834275 UNIVERSITY OF COLORADO COLORADO SPR ........................................................ $0 $18 $2,432 $18 $2,432809997 DENVER NATIONAL BANK ...................................................................................... $0 $18 $1,256 $18 $1,256833434 DELAWARE ALLIANCE FCU .................................................................................... $0 $17 $885 $17 $885816217 SYLVESTER BANKING COMPANY ........................................................................... $0 $17 $1,540 $17 $1,540833944 DEVRY UNIVERSITY ............................................................................................... $0 $17 $0 $17 $0832961 JOPLIN METRO CREDIT UNION .............................................................................. $0 $17 $1,210 $17 $1,210816845 THE PEOPLES BANK .............................................................................................. $0 $16 $2,616 $16 $2,616824822 TEMPLE UNIVERSITY ............................................................................................. $0 $16 $2,230 $16 $2,230829436 INTERSTATE UNLIMITED FCU ................................................................................. $0 $16 $1,439 $16 $1,439829140 FIRST COMMUNITY BANK OF WINDSOR ................................................................ $0 $15 $1,164 $15 $1,164808765 THE FARMERS & MERCHANTS STATE BANK ......................................................... $0 $14 $14 $0805704 FIRST NATIONAL BANK OF BAR HARBOR .............................................................. $0 $14 $14 $0802913 US BANK NA .......................................................................................................... $0 $14 $14 $0805849 CENTURY BANK AND TRUST ................................................................................. $0 $14 $14 $0832197 CONNECTS FEDERAL CREDIT UNION ..................................................................... $0 $14 $0 $14 $0810527 FIRST AMERICAN BANK & TRUST ......................................................................... $0 $13 $13 $0833568 DETOUR DRUMMOND COMMUNITY CU .................................................................. $0 $13 $557 $13 $557832326 CASWELL CREDIT UNION ....................................................................................... $0 $13 $0 $13 $0828677 FIRST HERITAGE FEDERAL CREDIT UNION ............................................................ $0 $13 $1,386 $13 $1,386829796 MEMBERS FIRST CU ............................................................................................. $0 $12 $531 $12 $531

174

FY 2006 SAP SUMMARY FOR BOTH TAXABLE AND TAX EXEMPT BY LENDER—Continued

[As of February 2007] 

Lender 

Tax Exempt Loans Taxable Loans Total Tax Exempt and Taxable 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

Special Allowance

Payments 

Ending Principal

Balance (9/30/06) 

828729 CENTRAL MICHIGAN COMMUNITY FED CR U ........................................................ $0 $12 $3,101 $12 $3,101832524 AMERICAN SPIRIT FCU .......................................................................................... $0 $12 $1,093 $12 $1,093833027 AMERICAN NICKELOID EMP CU ............................................................................. $0 $11 $236 $11 $236833962 US BANK ELT AFFORDIAN INC .............................................................................. $0 $11 $1,312 $11 $1,312818553 AMERICAN EAGLE CREDIT UNION ......................................................................... $0 $11 $11 $0816687 HARTFORD HEALTHCARE CREDIT UNION .............................................................. $0 $10 $10 $0832690 CAPITAL POWER FCU ............................................................................................ $0 $10 $10 $0834266 OHIO UNIVERSITY COLLEGE OF OSTEO ME ........................................................... $0 $9 $1,000 $9 $1,000827671 QUINCY MUNICIPAL CREDIT UNION ...................................................................... $0 $9 $9 $0834293 CENTRAL MICHIGAN UNIVERSITY .......................................................................... $0 $9 $9 $0834306 WASHBURN UNIVERSITY ........................................................................................ $0 $9 $1,200 $9 $1,200899993 SLMA/LSC NEW ENGLAND ..................................................................................... $0 $9 $3,921 $9 $3,921818712 FIRST NAT’L BANK OF SLIPPERY ROCK ................................................................ $0 $7 $7 $0832319 MARKETPLACE FEDERAL CREDIT UNION ............................................................... $0 $7 $437 $7 $437815816 HAMILTON HORIZONS FCU .................................................................................... $0 $7 $1,143 $7 $1,143830938 UNITED BRANCH OF BENNINGTON STATE B ......................................................... $0 $6 $196 $6 $196834020 EASTERN MICHIGAN UNIVERSITY .......................................................................... $0 $6 $6 $0832754 IBEW #317 FCU .................................................................................................... $0 $5 $5 $0833711 FANNIN BANK ........................................................................................................ $0 $5 $5 $0832360 ENTERTAINMENT INDUSTRIES FCU ........................................................................ $0 $5 $5 $0826264 AMERICU ............................................................................................................... $0 $5 $5 $0834290 KANSAS STATE BANK ELT UNIV KANSAS S ........................................................... $0 $4 $4 $0822734 UNIVERSITY OF MINNESOTA .................................................................................. $0 $4 $4 $0806185 AMERICAN BANK OF NASHWAUK ........................................................................... $0 $4 $4 $0825136 UCLA ..................................................................................................................... $0 $3 $3 $0821737 OKLAHOMA STATE UNIVERSITY ............................................................................. $0 $3 $3 $0827174 MALVERN TRUST & SAVINGS BANK ...................................................................... $0 $3 $3 $0832871 LANECO FEDERAL CREDIT UNION ......................................................................... $0 $3 $0 $3 $0829817 FLINT AREA SCHOOL EMPL CU ............................................................................. $0 $3 $3 $0809678 FIRST NATIONAL BANK OF PENNSYLVANIA ............................................................ $0 $2 $2 $0827521 LIFEWAY CREDIT UNION ........................................................................................ $0 $2 $2 $0834305 UNIVERSITY OF VERMONT ..................................................................................... $0 $1 $1 $0802033 AMERICAN EAGLE FCU .......................................................................................... $0 $1 $1 $0

175

816332 FIDELITY FCU ........................................................................................................ $0 $1 $1 $0832792 DECATUR STANOLIND CREDIT UNION ................................................................... $0 $1 $1 $0829293 MASSMUTUAL FEDERAL CREDIT UNION ................................................................ $0 $0 $85,076 $0 $85,076803917 CENTRAL STATE BANK .......................................................................................... $0 $0 $7,948 $0 $7,948806466 STATE BANK OF FAIRMONT ................................................................................... $0 $0 $4,428 $0 $4,428815644 PANHANDLE EDUCATORS FCU ............................................................................... $0 ($1) ($1) $0807806 CITIBANK ELT SLC RECEIVABLES I ....................................................................... $0 ($3) ($3) $0805095 FIRST NATIONAL BANK OF JEANERETTE ................................................................ ($5) $0 ($5) $0823817 JPMORGAN CHASE ELT BRAZOS HEA .................................................................... ($14) ($10) $0 ($24) $0808717 JPMORGAN CHASE NA ELT BRAZOS HEA IN ......................................................... ($43) ($5) $0 ($48) $0822685 SANTANDER NATIONAL BANK ................................................................................ $0 ($81) $21,208 ($81) $21,208815844 HUDSON UNITED BANK ......................................................................................... $0 ($84) ($84) $0822982 NEW JERSEY HIGHER EDUCN ASST AUTH ............................................................. $0 ($4,371) $171,699 ($4,371) $171,699834099 UNION BANK CA ELT CHELA FUND I (TEF) ........................................................... ($784,111) $0 $662,906 $1,052,570 ($121,206) $1,052,570

Total ............................................................................................................. $581,296,104 $11,106,045,909 $6,532,862,906 $251,176,218,814 $7,114,159,010 $262,282,264,723

176

[Whereupon, at 1:38 p.m., the committee was adjourned.]

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